Anonymous
07/28/2016 15:37
Subject: How much of savings to spend on single purchase
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?
I wouldn't do this all at once though. How could you have 3 bathrooms out of commission at once?
Anonymous
07/28/2016 15:32
Subject: How much of savings to spend on single purchase
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!
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!