Money is known as the single aspect that can cause more stress and disagreements than almost any other type of entity. When planning a Rhode Island home improvement project you will need to begin by creating a budget. Below are a few tips for you to consider.
How Much Can You Afford?
Many home owners in Rhode Island make the mistake of preferring to call in a remodeling company or contractor and expecting these professionals to create them a budget. This is not the best way to begin your home improvement plans. Below are 4 simple steps that can point you in the right direction before you call in a contractor.
The first decision should be based on whether you see your current home as a location you intend to settle down in, or perhaps you intend on moving to a better home in the future. The amount of time you plan on spending in your home should be a deciding factor on the type of money you should be investing into the remodeling project. If your plans are to stay in your home for at least 10 years then you can seriously consider putting in as much as you can to create a home you really love.
Make an honest list of all your existing debts. This must include all the debts that you service monthly. This typically includes credit cards, car loans, mortgages and any other items that are associated with fixed payments on a monthly basis. You can name this list your “monthly expenses.”
Now determine the gross monthly-income you bring in. This will include any other sources of income that may come into the household from an additional job or your spouse’s income.
Once you have subtracted all your expenses from your gross income you should be left with a figure that will allow you to determine how much you can afford to pay back for your Rhode Island home improvement plans.
If you discover that your maximum payment that you can afford to pay on a monthly basis was too low, you could consider taking out a “debt consolidation loan.” This would allow you to incorporate all your debts that are current into a home-improvement loan. This option can provide a way to accumulate all your existing debts into a tax-deductible loan and also offer a single payment for all debts which will decrease your DTI percentage.