Jerry Seinfeld and the finance guy

Comedian Jerry Seinfeld says "all things exist in different stages of becoming garbage" and describes our home as a garbage-processing centre.



Demotion
"Objects start at the highest level - visible in the living area. From there it goes down to a closet, cupboard or drawer. That's why we have those - so we don't have to see all the huge mistakes we've made."

The garage
"No object has ever made it out of the garage and back into the house. The word garage seems to be a form of the word garbage."

Paid storage
"Now instead of free garbage, you pay rent to visit your garbage. It's like a prison visit when you go there."

What if it all burnt down?

Last week I mentioned Scott Pape's book (The Barefoot Investor (2018 Update): The Only Money Guide You'll Ever Need). He's a finance expert who lost everything in a bushfire. The insurance cheque was a chance to start over. It was also a chance to realise that much of what they lost was pure clutter. He kept the cash rather than get a new set of clutter.

As a finance guy, Scott's also fascinated by how much Australians spend on houses. Why do we have the largest homes on the planet? He says "we need every inch to store all our stuff". When our homes reach capacity, we purchase storage units to cling on to our collection of clutter.

Where does it come from?

Frankly, we buy too much. The result is more clutter and more waste. From 1997 to 2007, Australia's waste per person went from 1200 kg to 2100 kg. Two tonnes per person! Second only to the USA.

While Scott cares about the environmental aspect, as a finance guy he can't help but "think of the millions of hours people worked to buy stuff that's now rotting in a giant hole". Those hours could have be used so much more enjoyably.

So why do we do it?

According to Scott's book, marketers spend a trillion dollars a year (one million million dollars) convincing us to buy stuff - and that we need it.

And it seems to be working. Even at the richest time in history, in one of the richest countries, 62% of Australians believe they can't afford everything they need.

But more money's not the answer. Of those earning $200,000 or more, 53% were angry or frustrated at their cost of living. Meanwhile anxiety, depression, obesity and diabetes seem to be constantly increasing.

Here's some help

Scott says "It's only when you start to see through the brainwashing - all the millions of manipulative marketing messages that are pointed right at you, and make the decision not to buy into it - that you're truly free to tread your own path".

As well as not buying more clutter, we can also reduce the clutter we have now - and turn some of it back into cash. My free resource Less Clutter More Cash can help you do this.