I’ve got a big renovation going on at my house. Well, it hasn’t started yet but the bills have sure started rolling in!
I’ve got my permits, my plans, my cost breakdown and a contractor lined up to do the work. Now, we’re just waiting to get started since he has another job to finish first, emptying out my stuff and tear-down starts this weekend and another few weeks before my little house turns into chaos.
This renovation has cost me countless sleepless nights already because I really don’t have the money to rebuild part of my house. I’ve been mulling and mulling it over and today I sat down with YNAB and planned my budget.
I’m going to try to get through the rest of July on a very bare budget and I have all my expenses, food, everything and a little blow money figured out for the next two months.
My budgeted expenses are;
– $1150 for August and
– $965 for September
I’ve figured out that during that time period I will then be able to put $4,117 CASH towards the renovation! Since the whole thing will run at about $7,500, in fact renovations usually go over, I’ll only have to borrow about $4000 on my SLOC to do it all! I should also be able to pay that all off and keep up with paying extra on my student debt by Dec 31st.
All in all I think that I can finish off the year owing about $5,000 on student debt with the renovation PAID in FULL. And, even if things don’t run as planned… my original goal was to have my student loan below $10,000 for the year WITHOUT this renovation so I think I’m going to get through this year okay no matter what. (Eck, then I’ll have to start thinking about my tax bill though)
But, it is very important that from this point forward I can’t be breaking my budget at all. I have a mostly new wardrobe, new shoes, I’ve got everything I need… a roof over my head, fun new toys to play with, heck I even have a fancy new phone. Go go gadgets. I’ve got blogs to read and write and awesome friends to hang out with, I’ve got a few cooking skills so there’s no need to be eating out all the time and I should be able to control my spending. There is no reason for me to break my budget other than lack of self-control
or extenuating circumstances. (Feel free to send me a stern email if I do try to wiggle myself out of that one)
This all makes me very very nervous though. It’s so easy to justify spending $5 here and there. I don’t deal with stress well, but this renovation has to happen… EEK!
Have you dealt with any big expenses that just had to happen? How did you handle it?