Many of the things regarding home improvement are quite flexible. You’ve always got the opportunity to nudge one of your walls another foot or change the colors of the walls. One thing is certain though – it takes money to do it. You can’t pour a foundation, lay a PEX line, or hammer a nail without it.
Here’s a quick look at some of the more popular ways to fund your home improvement project.
Short Term Loan
If you go to one of the online installment loan direct lenders, this can be a quick and easy way to get money for those smaller home improvement projects or for when a home improvement emergency pops up. There aren’t too many requirements and once you’ve been approved, the funds can be deposited right into your account quite quickly.
Liquid Assets and Cash
This is the most readily available money you have access to. Think savings bonds near their maturity date, CDs, checking, and savings. Cash is the absolute cleanest, freest way you can possibly pay for your project to make your living room more family friendly because you don’t need to pay it back at a later date.
The pros here are that there aren’t any charges, fees, or interest. You won’t be dependent on someone else either. However, with every pro, there’s also a con. One of these is that you’ll deplete any savings you’ve managed to build up. Also, most people won’t have enough cash available for larger projects, such as full room remodeling or an addition.
Do you have any willing family and/or friends? For the cost of a pizza and a six pack, they might assist you with a bit of sweat equity when it comes to your renovation project. Just as with the cash option, there are pros and cons to sweat equity.
The pros include that the labor is free, and it can be more than satisfying to take control of your entire project. The cons are that while the labor is free, the materials aren’t. Also, if the job is one that requires a learning curve, it might be both faster and cheaper to hire skilled professionals.
You also need to keep in mind that while sweat equity can be fun and is at some point inevitable, you shouldn’t stretch it if you aren’t sure of what you can handle.
Credit cards that you’ll be able to pay off when the bill comes due, or 0% interest ones that you have up to a year to pay off are the best options here. Some homeowners will even pay one 0% interest card with a different one, which essentially creates a risky, yet permanent loan that doesn’t carry any interest.
Some of the pros for this are that the money is readily available and, with some cards, when you make large purchases that are home related, you get rewards or points. Some of the cons include things like a risk of high fees or interest and they can give you a false sense of having more money than what you truly have. The bottom line with credit cards is that they can be a tricky method of financing home improvement projects and a method that requires both maintenance and attention.
There you have it. Between short term loans, ready cash and/or assets, sweat equity, and credit cards, you now have four available options of funding your home improvement projects. Keep in mind that these should be options for the smaller projects that can be paid off quickly.