The Anfield Iron's prized collection, which includes league title, FA Cup, UEFA Cup and European Cup winners' medals, will go under the hammer later this month.
In total there are 75 lots which are expected to generate in the region of £120,000.
"I had a wonderful career but the memories I’ve got are more important to me than the medals and the shirts," Smith said.
"I’m getting old and the money is of more use to me now than the medals. This is about me putting my family first."
It's a decision Tommy Smith hasn’t taken lightly.
The Liverpool legend thought long and hard before coming to the conclusion it was time to part company with all the spoils from his illustrious career.
Later this month the Anfield Iron’s unique collection of sporting memorabilia will go under the hammer at Bonhams auctioneers in Chester.
All his precious medals and framed shirts from some of the biggest games in Liverpool’s history will go to the highest bidder.
In total there are 75 lots and if they all reach their guide price the sale will generate in the region of £120,000.
Smith remains fiercely proud of everything he achieved for the Reds after signing as a schoolboy under Bill Shankly in 1960.
The tough-tackling defender made 638 appearances up to 1978, winning four league titles, two FA Cups, two UEFA Cups and the European Cup.
The 66-year-old former Liverpool skipper insists the sale isn’t borne out of financial necessity. Instead it’s a practical solution as he plans for the future.
“It’s something I’ve been thinking about for a long time,” he said.
“I had them all packed up in the loft and then a few years ago I moved them to a bank for safe keeping. It’s not as if I’ve been used to having my medals all out on display at home and seeing them every day.
“I hadn’t seen them for about two years as they were in the bank and I just thought what the hell are they doing there?
“They are worth an awful lot of money but no-one is benefiting from them all just sitting there. It’s not helping me and it’s not helping my family.
“It was absolutely brilliant to win all those medals. I had a wonderful career and everyone knows I gave everything I had for the club.
“But the memories I’ve got are more important to me than the medals and the shirts."