It’s easy to get excited with the idea of home renovation, especially if you’re finally settling into your new place. You’ll imagine sleek countertops, a rainfall showerhead that melts stress away, and maybe even a smart fridge. But before you get swept away in a whirlwind of home improvement aspirations, let us talk about something crucial: your budget.
Renovating exactly how you want can be tempting. But if you don’t have the money for it, you might have problems later. So before you whip out that credit card or take out a loan from a moneylender for those gorgeous new home fixtures, consider these important factors first:
Drawing the line between needs and wants
Washing your face in front of a fancy faucet with a built-in LED light might be cool. But is it a necessity? Learn to differentiate between “must-haves” and “nice-to-haves”. Often, the ones who could not separate them end up with poor financial health.
Before splurging on luxurious add-ons, make sure that you focus first on essential fixtures such as a functional sink, a reliable stovetop or a proper toilet bowl. After all, how can you be happy in your new home if you cannot afford groceries after overspending on a designer tap?
Research is your best friend
We all know that knowledge is power, so save yourself a significant amount of money by seeking it. Decisions with significant impact should be carefully thought out, not made on a whim. This principle applies when taking out a loan.
Look for different loan options available by going online or asking for recommendations from family and friends. How much are their interest rates? What about their repayment terms? These are crucial details to compare before pressing send on your loan application.
Beyond the total costs
Aside from the tempting price tag, how much would you have to pay for the installation of that fixture? What about potential delivery fees and any additional modifications required?
Remember to factor these costs into every purchase. You don’t want to blow your budget out of the water. Make sure to get a comprehensive quote and pad your budget for unforeseen expenses.
Think years, not months
A loan is a financial obligation. Paying it can become a struggle if you’re not careful, and failing or avoiding to pay it back has serious consequences. So don’t let the gratification of a home upgrade make you take one out blindly. Before taking out a loan, consider its long-term impact on your finances.
Are you confident that you can pay the monthly dues while meeting your existing living expenses? If you have financial goals, how will this loan affect them in the years to come?
Unleashing your inner DIY guru
It is common knowledge that we could save so much by being a little bit creative. So ask yourself: Is borrowing money the only way forward?
Maybe you could temporarily tolerate the existing fixtures as you save up for the upgrades you desire. You should also consider more wallet-friendly options, like those from stores that either sell secondhand or assembly-required fixtures. Alternatively, you can try your hands at some DIY projects.
Conclusion
Mull over these things before borrowing money for new home fixtures. Remember, what works for your neighbour might not work for you. So take your time to make the decision that feels right for you and your home. We hope this blog post helps!