Reply to Huge raises (for us)- no idea what we can afford for remodel

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[quote=Anonymous][quote=Anonymous]DH and I have always lived very frugally. We both just got major raises in the last couple months and now I feel like I can't even fathom actually spending some money.

We bought a large 1964 home in 2016 for $335k. It has the original kitchen and I am DYING to tear it out. That thing is the bane of my existence. It will be a significant project including removing a load bearing wall and likely redoing the full bath next to the kitchen (we are going to have to move plumbing anyway so it just makes sense to do it all together).

Here's our general finances and FWIW, DH and I are 30yo with two small kids.

-HHI $250k + bonus (likely 20k). Still shocked. We have had a HHI of $120-140k for the last 5 years.
-Mortgage, taxes, insurance, etc $2200/mo
-We have $8k in student loans left and no other debt
-Childcare: $1400/mo (in 2024 will go down to ~$800/mo and both kids will be in public school by 2025)
-We are behind on retirement but hope the catch up quickly with the raises (currently have $80k)
-529s have $5k and $3k in them currently but kids are only 3yo and 1yo- will up this with raises

Can we afford to do ~$100k renovation? Should we take out a HELOC? We bought at $335k, current appraisal is $460k (obviously not in DC- we're in Chicago).

[/quote]

Given the balance in your retirement and 529 accounts, absolutely not.  You've lived with the kitchen for 6 years, you can continue to do so.  [/quote]

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