Thanks for all the comments and tips on my last post about our upcoming trip to Washington DC and NYC! I’ve compiled all the suggestions and plan to use many when we travel! I realized I hadn’t mentioned a timeframe – we won’t be going until the Spring. Hopefully by then the government shutdown will be resolved! Thanks again to everyone who reached out and left a comment!
Today, I wanted to talk about budgeting for home improvement projects.
Since moving into our house just over 5 years ago, we’ve made it a goal to do one or two small projects each year (usually $2,000 or less). Past projects include adding astroturf to our backyard, installing solar screens to help with electricity (and protect us from the Arizona heat!), and replacing our too-small water heater with a tankless option. These were done gradually across time, and usually paid for with a “third paycheck” month, so the cost didn’t disrupt our regular budget.
That system has worked well, but lately I’ve been wondering whether we should intentionally set money aside for these projects each year. We already have a house “emergency fund” for major issues like an HVAC replacement or roof repair, but I see that as separate from smaller planned upgrades.
One part of me thinks – “If it ain’t broke, don’t fix it!” Why complicate something thats working?
The other part of me thinks – “What if we want to take on something bigger that isn’t an emergency?” The thing that comes to mind is replacing our downstairs flooring. Currently it’s a mix of tile and carpet and both are in pretty rough shape. We have several cracked tiles (from the home settling) and the carpet is pretty beat up from dogs and kids. I’m not rushing out to make any flooring changes right away (frankly, the price tag scares me!), but it’s something I think about – especially if we plan to stay here another 5 years (which is our current plan).
When I did some googling, I learned there’s no “one” answer for how much people spend on home improvement annually. This one article suggests the average is about $9,000 per year. Then I googled what Dave Ramsey says. I’m not a 100% Ramsey-follower, but his debt aversive thought process appeals to me. According to Ramsey, no more than 25% of your budget should go toward household expenses, including mortgage, property taxes, insurance, and any home improvements or upgrades, combined. Using that as a guide, we have some room to start saving for future projects, if we want.
So now I’m curious – what do you do?
Do you plan and budget for home improvements that occur regularly across time? Do you live with things as-is and then tackle everything before selling? With my first home, we did almost nothing until the end, when we spent thousands fixing it up for sale. It would have been nice to enjoy some of those upgrades while we still lived there!
With house (and husband) #2, we’ve taken a slower, more intentional approach. We make small improvements we can all enjoy now. Replacing the water heater, for example, made a huge difference in our daily lives! No longer racing to be first to shower so the heat didn’t run out? Priceless! You mean we can shower AND run the dishwasher AND a load of laundry at the same time? Amazing! It’s been worth every penny and I’m glad we did it when we did so we can actually enjoy the benefit!
So please chime in – how does your family handle home improvements? Do you budget and plan across time, wait until selling, or fix things just as problems arise? I’d love to hear how others approach this!
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