Financing Home Improvements

Financing Home ImprovementsIf you think about it, it’s odd the stigma that we put on the idea of money. You either have too much of it or not enough of it. You work really hard for it. Logic would infer that you should be able to enjoy it once it’s in the bank or wherever you squirrel it away. And yet, money and finances are continuously top of the list for the biggest stressors in the world. We could dig into the psychological thought processes behind this, but we think your time visiting the Restumping Melbourne blog would be better served learning about how to use and enjoy that money – as it relates to your home.

While it’s not January right now, calibrating your finances can take place any time of year. Many love doing it in advance of January 1, because it feels like a tidy way to say goodbye to the previous calendar year and hello to the impending one. Well, January is a long way off, so let’s pretend that we’re starting anew today and we’re looking at the right ways to finance home improvements this year.

We like to follow the 50-30-20 rule. The 50 is the per cent of your paycheck that goes towards bills and payments that you can’t live without. These include your mortgage or rent, power bills, etc. The 30 is for your “wants” – like shopping, hobbies and dining out. Home renovations would fall squarely in this budget. The 20 per cent is where your savings live, never an area where you’d want to skimp. Now, you can always dip from the other “buckets”, but it will muddy the waters very quickly. If you separate the three, you’ll feel confident that you’re set up for success – and be able to look forward to future projects.

One huge mistake that many make is not regularly checking accounts or where your spending is going. We recommend that you check your different streams of revenue at least once a week and taking notes where there are gaps.

Now, it’s time to decide which home improvements need to be completed and in what order. Anything to do with your roof, home’s foundation, or plumbing, needs to be taken care of ASAP, and don’t feel bad about investing money. We’re not just talking about your immediate comfort levels; we’re talking about heavily damaging the home if left neglected.

We recommend that you think six months ahead for anything that’s not absolutely vital… which actually means, our timing for 2021 budgets is perfect. Walk around your house, determine the 2021 projects you want to see completed. Rank them. Cost them. Make a list. Now compare it with your budget and think through exactly how much money each month you’ll want to allocate towards ensuring that your home is as safe and comfortable as possible when you ring in the next year.

Questions? We’re always here. The Restumping Melbourne team is continuously dedicated to being your support system when it comes to all aspects of your home.

House Budgeting Heading into 2020

House Budgeting Heading into 2020In the 1920s, the twenties were referred to as quite an age of decadence. Think about movies like The Great Gatsby. Those were parties for any decade, let alone one that was leading into the Great Depression for many different countries. We’ve come a long way since then, but that doesn’t mean that thinking tactfully about the ways that you’re spending your money are any less important. Some things never change, but some things do. Some things like having far better resources and information to ensure that you’re making the best decisions. The New Years’ season is most popularly the best time to start making goals, and the vast majority tend to have something to do with money. It doesn’t matter if it’s how you save it, how you spend it or how you donate it, the end of December is a gut-check to stop, think about it and determine exactly how where your wallet’s contents will go over the coming months.

It can be stressful! And that’s the purpose of today’s Restumping Melbourne message. We want you to be proud of the money that you’ve made and excited about the ways that you spend it. Here are some tips and tricks as we say farewell to the year that was 2019.

First of all, you need to look at your debt and the best ways to manage it. Easier said than done, right? Well not if you ask experts like Dave Ramsay, who knows exactly what he’s talking about. His tips include the following:

  • Start Emergency Fund
  • Pay off Debt
  • Build Emergency Fund
  • Invest
  • Save for College (if applicable)
  • Pay off Mortgage
  • Build Wealth and Give to Charity

Once these are in place, it’s far easier to think about where your money can go – be it to improve your current home or plan a whole new one!

Yes, this is where the math comes in. And sometimes, math is no fun. But, it’s unavoidable. Here’s where we tapped Investopedia:

  • “To determine if a home is affordable, calculate your entire debt-to-income ratio: all your monthly expenses divided by your gross income.
  • Homeownership involves a variety of ongoing costs, including homeowners’ insurance, property taxes, and repair/upkeep expenses.
  • Affording a home means being able to make at least a 20% down payment on it; otherwise, you’ll incur costly private mortgage insurance.”

The best part is that we live in a day and age where you have all of the tools possible right at your fingertips. You can take advantage of applications like mint or these shared from Nerd Wallet.

And while we may be a *wee* bit biased, and probably say that far too often on our blog posts, we truly believe that the best way to get your questions answered is when you work with a company that reinforces homes from the ground up – literally. From your foundation to your finances, the Restumping Melbourne team is not just there for you during the holidays, we’re here year-round.