But it's not like housing is an optional thing - if you don't buy, you have to rent. For a few bucks more you can have a house of your own. Buying a house can be more expensive while you're making payments, but you have an asset when you get done (and a "free" place to stay). When you rent, you end up with nothing; if you're lucky, you get your deposit back.

As with a car, house maintenance and repairs are a lot cheaper if you don't let things go. Deferred maintenance is always more expensive. Fix things at the first sign of trouble.

Make sure you have enough money saved up to cover the deductible on your homeowner's policy. I spend a little extra for a low deductible and extended coverage - might cost me a few bucks that I could use better elsewhere, but I sleep better at night.


Save as much as you can. When you spend, spend to save in the long run. Treat yourself every now and then, but NEVER sacrifice financial stability for a little fun.

Plus, the home can appreciate and mortgage interest is deductible.

And if you've got an old house, budget an extra 100% of the job cost for when you get halfway into the job and find another three broken things. Ask me how I know. :rofl2:

ALWAYS expect to spend double your budget on repairs/renovations. It never fails.

I keep learning that lesson over and over. My house is 100 years old. Nothing goes according to plan.

Mine is only 20. But it's a shitty builder home with every corner possible cut and low quality materials. Everything I touch has to be completely rebuilt :shakes head:

Tell me about it. Just spent $40,000 on a kitchen remodel job.

I'm in the middle of a home mod right now and have already spent my budget and I am only about half way there lol!

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My parents' kitchen remodel included installing an I-beam in the ceiling because they discovered the structure supporting bathroom above was not sufficient :eekdance:

You're right on track! :tup: :icon17: :wtf2:

Yup, and my car is not happy about it at all! :eek:

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:rofl2: I know what you mean about blossoming project budgets.

Sometimes it's cheaper, in the long run, to pay a pro to do the job - they have the knowledge/experience to assess the job, the proper tools to get the job finished quickly, and, if the job is not something you are good at, the repairs will be done better and last a lot longer. I'll do my own electrical (I was an industrial electrician) but get a plumber to do any big plumbing jobs (I'm not a plumber; I have a hard time getting water to flow downhill).

:iagree:

But it doesn't matter whether you or the contractor tear open a wall and find $5K worth of unexpected repairs. The budget is shot right there, and then it happens two more times :shakes head:

Stay off car forums, they tend to make you want to purchase more car parts!

On a serious note, live within your means or below it if at all possible.

Thought of another one: Don't go overboard when buying gifts. If you have to impress someone with the price of a gift, you don't need that person in your life. And vice versa. ;)

If you buy me something for my birthday, I'd much rather have something cheap but personal (eg, a $2 trinket to go on my keychain that will remind me of you/us). Large amounts of cash will always be graciously accepted but not necessary to keep me as a friend.

We spend money we don't have, on things we can't afford, to impress people we don't like.

And I'll have to admit that I was somewhat that way. I could afford the payments. I thought that was ok.

I was friends with Tim Durham, and man, I thought he had it all together. The house, the hundred cars, the yacht. I thought 'this dude is making it'. Then the economy collapsed. Turns out everything was purchased with debt. So he started 'borrowing' from one of his businesses, got caught, and is in federal prison for the rest of his life. He literally was on CNBC's Super Rich one year, and on American Greed a couple years later.