My job may be cut to part-time soon, but I have a new kitchen planned

[Anonymous]

Just got word that my job may be scaling back shortly and not ramp back up for 6+ mos, due to a property dispute where the office may need to relocate and lose lots of walk-in business from people who are familiar with that location
I'd made plans to redo my 40 yr old kitchen, no deposits paid yet
6 more years of mortgage left, the kitchen money is in a savings acct, no loan needed, around 35k
I'm considering going ahead with renovation, because if I need to downsize, I'd get some of the money back vs selling as-is
Plus I may end up doing more home-cooking
The 35k would be a good financial buffer though
WWYD?

[Anonymous]

Anonymous wrote:Just got word that my job may be scaling back shortly and not ramp back up for 6+ mos, due to a property dispute where the office may need to relocate and lose lots of walk-in business from people who are familiar with that location
I'd made plans to redo my 40 yr old kitchen, no deposits paid yet
6 more years of mortgage left, the kitchen money is in a savings acct, no loan needed, around 35k
I'm considering going ahead with renovation, because if I need to downsize, I'd get some of the money back vs selling as-is
Plus I may end up doing more home-cooking
The 35k would be a good financial buffer though
WWYD?

It's hard to tell from the limited picture of your total financial situation.

However, if you are planning on downsizing soon, you will probably lose some of the money so "getting some of the money back" sounds like a negative, not a reason to go ahead with the kitchen.

[Anonymous]

I'd downsize IF the work situation got dire
No plans to downsize otherwise till 2028

[Anonymous]

I wouldn’t.

[Anonymous]

Don't do the renovation until your job is stabilized duh

[Anonymous]

I would be happy I had 35K in savings to help see me through the reduction in work. Just ask the feds who were affected during the shutdown.

[Anonymous]

Don't forget about cost overruns. Could end up without a job, no money and half finished kitchen

[Anonymous]

If you have to worry about downsizing vs. $35K remodel, you don't have enough savings to spend that on a remodel.

[Anonymous]

Anonymous wrote:Just got word that my job may be scaling back shortly and not ramp back up for 6+ mos, due to a property dispute where the office may need to relocate and lose lots of walk-in business from people who are familiar with that location
I'd made plans to redo my 40 yr old kitchen, no deposits paid yet
6 more years of mortgage left, the kitchen money is in a savings acct, no loan needed, around 35k
I'm considering going ahead with renovation, because if I need to downsize, I'd get some of the money back vs selling as-is
Plus I may end up doing more home-cooking
The 35k would be a good financial buffer though
WWYD?

No.

[Anonymous]

How much savings do you have apart from the remodel? Presumably you saved for the renovation on top of regular emergency fund savings. What does your household budget look like without your income? What about health insurance?

My recommendation is to map out a worst case budget and determine what you can cut back (gas, tolls, lunch) and what will increase if your job goes away (COBRA, electricity) Then consider your employability if you are job hunting. Will it take 6 months? More? If you have enough to find the shortfall then I’d go ahead with the renovation. Otherwise I would halt it.

[Anonymous]

I wouldn’t do the renovation until the job situation stabilizes. I would start looking for a new job though.

[Anonymous]

Just wait. Let it blow over. 6 months is nothing. Be happy you know before starting.

[Anonymous]

6 months will be heading into the slow season for construction so you might get some better prices or deals if you wait until fall.

[Anonymous]

Could you take in a roommate if the job is lacking for a while? If so then do it. If not then just wait a while until your paycheck stabilizes.

Sounds fun though - a new kitchen is a very enjoyable thing. Congrats on saving 35k!

[Anonymous]

If you are selling don’t renovate. You won’t get all the money back. It is throwing money away. Just sell now.