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.