My home is 75 years old and as you can expect, things wear out over time.  In my home, I had a very tired bathroom and a dingy kitchen.  Both needed a refresh more than I realized.   So I saved for about five years to be able to do the project the way I wanted.  However, what started out as a “want” ended up becoming a “need”.  

Why do I say that?  Because we found leaking shut off valves that we didn’t know were leaking.  They caused mold which had to be treated.  We found a live electrical wire running under the old tub (which thankfully was a plastic tub).  We found other damaged electrical and plumbing, again unbeknownst to us.  And the list went on.  Happily, all of that has been repaired.  Additionally, in the middle of the renovation, the roof sprang a leak and had to be repaired at an additional cost.

Thankfully, in my budget, I had put aside 20% extra to account for things unforeseen which was fortuitous as we had to dip into that fund.  Did I have to spend it all?  No.  But it was there if I needed it.  Remember, when doing a remodel, things always come up that are unexpected and you have to plan for that.  

So what is the moral of this story?  It’s threefold.  First, save up and pay cash for any remodel.  Interest on a loan will cost you a fortune over the long run.  Additionally, if you take a loan against your home, you put your home at risk if you can’t pay the loan back for any reason.  Secondly, save up an extra 20% for contingencies.  As you can see, you can’t predict what kind of issues may come up.  Lastly, yes, it’s possible to pay for large expenses with cash.  You just have to have the tenacity to save up for what you want.