How much of savings to spend on single purchase

[Anonymous]

We have been wanting to do some remodeling on our house for some time, specifically finishing an unfinished basement for kids to have more room to play and remodeling a kitchen and 3 baths from the 1970s. Based on several estimates I am expecting this work will cost about $100K. DW says go ahead and do it. I like saving money and hate spending it perhaps to an unhealthy degree. Probably it is because while I have been relatively successful in my career, I grew up living paycheck to paycheck. Current finances look like this:

Monthly take home: 10K
Monthly expenses: 8K
Liquid savings: $200K
House is worth about $550K in current state

DW says $100K emergency fund is enough. Probably she is right. But would you spend half your savings on these renovations? It took almost 5 years to save $100K!

[Anonymous]

Do it. That 500k house would cost you 30k just in realtor fees to sell plus 10k in other selling/closing costs to buy.

I wouldn't do this all at once though. How could you have 3 bathrooms out of commission at once?