Mickey Mouse Garage Sale Yard Sale Purchase Book

Purchase Money Limit

Dollar Flipper eBay Tips, Process

Setting a purchase money limit is a great way to control your spending and inventory size. If you’re not careful, reselling online can make you look like a hoarder or even put you in debt. By setting my spending limit, I know that I won’t go into the hole, and I know that I won’t be buried in new items to list!

I’m not sure why I’m on such an inventory kick recently, but I think getting through my older items is wearing me down a bit.

On top of that, the weather’s getting warmer, and Spring fever is kicking in.

Don’t tell any0ne, but I may have spent a bit of money on new inventory this week. SHH!!!

Warm weather makes me want to be outside more – whether it’s working out or going to a garage sale. I’m sure this is how addicts feel, and I’m not trying to make light of a serious issue. I think we all have different levels of addictions, and luckily I’ve focused mine on a hobby/business that helps bring in some extra cash instead of one of the more nefarious recreational activities.

If I don’t watch it, I can get overwhelmed by the amount of stuff I bring into the house. Maybe I’ll end up having my own reject yard sale again!

Mickey Mouse Garage Sale Yard Sale Purchase Book

Even Mickey and his friends are taking advantage of the weather and having a garage sale!

This is a book at my in-laws house. My daughter loves looking at the shapes, and I couldn’t help but see if Mickey has anything valuable. All depends on what kind of magazines those are…

Purchase Money Limit

I keep $200 ‘on hand’ when I go out shopping.

EDIT for clarification: This is a $200 target that I do not budget for on a monthly/weekly basis. Once it’s filled, it stays at $200 until I start spending the money. I replenish this spent money when I have new sales.

We use YNAB, which is basically an electronic envelope system where all of your cash accounts gets budgeted down to the dollar.

I have some categories that are eBay related, and one of these is Purchase Money. I can spend money from either my wife or my cash reserves, any checking account, or a credit card (at a thrift store). The budget doesn’t care where the money comes from, just that you know how much you have in total and how you allocated it.

When I go out shopping, I may only bring $100 in cash on me, and I don’t think I’ve ever spent more than $150 at one single sale. Generally, $75 is the most I’ve spent, so this limit works very well for me. The goal is not to force yourself spending $200.

If you think that $200 isn’t a lot, you’re either buying very different things than me or you’re overpaying. $200 can buy a huge amount of inventory that will end up selling in the $30-$50 range.

The biggest downside of having a lower limit is the possibility of missing out on a huge score. I don’t really worry about this because we have so many different types of savings goals (like those damn heating/cooling appliances). If something were to come up that was too good to miss, I’d take a shot at it. I would only do this for a sure thing, though, and I’d have to be VERY sure.

The final question I have is when should I replenish this $200.

Say I spend $50 at a garage sale and then sell something for $75 the next day. Do I put the profits right back to the purchase money, or do I wait until the end of the month? This would further limit the buying I could do during an individual month.

That really still seems to be the problem. I can out-buy my capacity to list and/or store my items. It’s a constant struggle. It’s just that the shopping/buying is so much more fun than the listing.

I may try one of the listing prep-services geared towards eBay. Could be a neat experiment.

As for now, I’m going to continue on the normal path of 15 items per month and $200 spending limit, but if March’s sales end up anywhere near February’s, I may have to take a hard look at myself and have a focused listing month in April.

Do you have a purchase limit? How do you control your spending?