Are Home Renovations Making You Poor?

I am convinced that many of the “Home & Garden” channel type shows are just one long continuous entertaining commercial with one simple message. “The perfectly fine house you are in right now is not good enough.” The average cost of a kitchen remodel is $22k to $52k! You just added 4 more years to your required working time with prices like that! The shows are telling you that you need a new bathroom, kitchen, outdoor patio, etc. remodel. You do not have the latest in countertops, colors, light fixtures, etc. etc. on and on forever. Why is it on and on? Because the home remodel industry has to figure out ways to extract billions in profits from your pockets. You have to feel bad about the house you have. This is great if you own Home Depot stock, bad if you get caught in a never ending cycle.

I am not anti remodel or anti take care of your property person. I really enjoy nice homes and spaces. But, everything in balance. I have known people constantly chasing the next remodel trend and the expenses add up fast. It just might be up there with car ownership in terms of a wealth destroyer.

Before you jump onto the next trend and spend $10,000 on another project, ask a few questions:

1. Why am I remodeling?

2. Whatever I’m changing, is it safe and does it work? If yes, then can it wait. The longer you wait the more time your money has to compound.

3. Is there a less expensive way to change it or improve it? Can I do some or most of the work myself?

4. Have I focused on what I have vs what I perceive to not have?

5. Are you adding to the pain by putting the remodel on a credit card and paying additional interest?

Again, we are not saying there isn’t a time and place to spruce up your property. But make a conscious informed decision for the right reasons.

Plus, if you wait long enough those avocado green appliances will come right back in style. Just wait until people start spraying popcorn ceilings again!

 

 

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