Selling The Sentimental
Daniel is on Baby Step 2. He used his baby emergency fund to fix his car and now he's panicking. He has a $2,500 sword set from his dad that he could sell. What should he do?
QUESTION: Daniel in Washington is on Baby Step 2 and selling lots of stuff. He had to spend his baby emergency fund to fix his car and now he’s panicking. He has a $2,500 sword set from his dad that he got as a kid which he could sell. He makes $45,000 a year. What should he do? Dave doesn’t want him to sell it for one important reason.
ANSWER: I don’t think I’d sell it. This is a gift from your dad when you were 12, and I think five years from now, when you’re making $80,000 a year and you’re debt-free, you’ll wish you still had that.
One of the things I’ve learned about rich people is they make decisions based on how they’ll feel five years from now, not how they’ll feel five minutes from now. If you sell the swords, you’ll feel better in five minutes because you’ll be debt-free for now. Five years from now, you’ll regret it. I’ll go with the long-term mentality of how I analyze things.
If your kid was sick or you are about to lose your home or something like that, I guess we could look at selling it. It is just stuff at the end of the day, but this is a pretty special item, and it’s tied to a pretty special situation. If you had bought it three weeks ago, I’d have told you to sell it. But this came from your dad when you were 12, and when you are 48, you’ll want that in your den.
I’d give up some hours and work extra, and maybe give up some other things around the house a long time before I did that. You don’t make good decisions when you are freaking out. None of us do.