When someone brings up budget, the general reaction of those involved in the conversation is something coupled with anxiety and dread. Why is it so hard for people to budget and reign in their spending? Perhaps the reason is that those who budget only budget because they have to. It’s a sign of being poor…which couldn’t be further than the truth.
Generally speaking, those who don’t budget are the poor ones because they don’t quite understand how much money they’re putting out, which in retrospect translates as no money in the bank. No money in the bank makes people feel like they’re poorer than they actually are…that is before all the money unaccounted goes to pay for things like coffee, expensive cars, and takeout.
If a poor person who doesn’t budget took the effort and discipline to keep track of where their money was going for one week, they would realize in fact that they’re aren’t poor at all. They’re just bad spenders. Bad spenders don’t live prettily for long-and they definitely can’t afford to spend money they don’t have on luxuries such as home improvement.
With this being said, here is the correct way to budget for home improvement:
Only Take As Much As You Can Give Back
If you must borrow in the home improvement process, than only borrow as much as you need to get the work done-and by all means, find a way to get that money that is going to be easiest for you in the long run. Start small, and gradually build on what you have.
Don’t rope yourself into years of interest just because you want that oak door. For the sake of putting the next meal on the table, go with the standard options that get the job done and still look nice. It’s like buying a new car when your current one has never had a problem.
Learn to Compromise
Everything in life is a compromise. Nobody likes to hear it, but it’s true. Compromise can be a negative thing, but in this sense, it doesn’t have to be. In order to afford that home renovation you really want, you’re going to have to compromise on what you want somewhere else in the process. If that means you can’t have your morning latte for a year, that’s what it means. you’ll have to make do with drip.
Evaluate all aspects of your life in which you’re pouring money. What can you give up for a time to accommodate for the thing that will be better for you in the end? Life is full of these give and takes. When you marry, you give up having a bed to yourself. That’s a compromise worth making.
In the same way when you budget life in terms of only borrowing what you can afford to give back as to not put yourself into financial trouble, or giving up your favorite treat so that your home can be a place everyone can enjoy for years to come, you’ve made a decision that is worth it.