We all wish we could save more, but only about 20% of us actually achieve that goal. A majority of Americans report that they are not satisfied with how much they save, but few actually take steps to budget well and save for emergencies. Where does the money all go? Well, here are five common money mistakes we all make, so maybe we can watch out for them and hopefully start saving.
When I want something, I usually don’t wait too long to get it. Whether it’s a new pair of shoes, golf clubs, or tickets to a sporting event, I usually make my purchase sooner rather than later.
Unfortunately, there are exceptions. I can’t afford to go out and buy a new car whenever I see one I like. It doesn’t make much sense financially to take a vacation every other week. You see, we can’t always get what we want. Homeowners have the same dilemma. At some point, you realize your house doesn’t fit your every need. It could be due to too many people and not enough room, or maybe you just realize you want more than what your current home has to offer.
When doubt starts to seep in, the question of whether to remodel or relocate comes to the surface. One important factor to take into consideration is cost. What type of upgrade are you looking for on your current home? Is it more cost efficient to sell your current home and purchase a new one or to remodel? I’ll provide reasons for both below.
Why you should remodel:
- You like working on projects and being rewarded with a finished product. When I think of someone that fits this description, I immediately think of my dad. Over the years, I’ve watched him redo our basement multiple times, add new rooms and add/remove numerous decks. I figured out a long time ago that he’ll never be content with the house the way it is. If you’re the type of person that’s always looking for ways to improve your home, remodeling could be for you.
- If you’re satisfied with the location of your home, you’ll do whatever it takes to stay put. That means you can either put aside the dream of what you want your home to look like or you can remodel. The age of your kids can play a huge role in this, too. Let’s say you have kids aged 12 and 16. At that point in their education, you may be concerned about them leaving their friends and school behind and starting from scratch. Remodeling solves that problem.
- If you know you want to eventually move, but would prefer to stay put for the time being, remodeling can actually increase the value of your home. You can look at it as an investment. The more improvements you make to your home, the more you’ll get from it in return when you decide to sell.
- Have you ever had buyer’s remorse? Even if it’s on something small like a pair of jeans, the feeling of regret you have after buying something you realize you don’t like is hard to shake. You can avoid all that if you decide to remodel your home.
- Do you like your current floor plan? If so, you’ll want to consider how difficult it may be to find a similar floor plan in a different location.
- If you’ve been at your current location for an extended period of time, you’re probably very familiar with your neighborhood and your neighbors. It’s not easy to find a neighborhood you feel comfortable with right off the bat. If you’re happy with the neighborhood you’re in, you may be better off staying put.
Why you should relocate:
- You’re running out of space. One of the most common reasons people decide to move is because their home no longer fits their spatial needs. It’s common for young couples to buy a small two or three-bedroom house that fits their life. However, a couple years down the road when they start a family, space becomes an issue. The opposite could be true, too. For example, a couple who has a large house may outgrow the need for such space once their kids move out.
- If you’re unhappy with your location, remodeling can’t change that. You’re better off moving to shorten your commute to work, put your kids in a better school system or whatever the reason. Another factor to consider is yard space. If you’re stuck in a neighborhood that doesn’t provide you with much of a backyard, there’s not much you can do to get the backyard of your dreams besides move.
- My dad likes working on projects, although that isn’t for everyone. You may not have time to add new bedrooms or whatever it is you want to change. Remodeling can be an inconvenience. You may not be able to use certain parts of your home until the remodel is done. If you aren’t willing to sacrifice that, moving may be your best option.
- Depending on what type of remodel you’re interested in, it can get pricey. While I talked about how remodeling can add value to your home, it can also cost you more money than you’ll ever make in return. If the type of remodel you’re interested in requires major structural work, you may not have the budget for it.
- If you’re planning to move in the near future, a remodel would saddle you with extra costs that you don’t want. Also, if you’re someone who enjoys completing a project start to finish, you won’t be able to do that if you move right away.
Should you remodel or relocate? It’s a difficult decision, albeit one that you might have to make at some point.
Have any of you had to choose between remodeling and relocating? If so, how did you make your decision? Let us know in the comments section below!