Delay Work to Save? As costs go up, consumers have to decide what other expenses to cut. This is a very personal decision as each, and every reader’s situation is unique.

Delay Work to Save?

Economic headwinds, specifically inflation, are affecting everyone. Fuel and food are the most visibly affected weekly consumer costs, but inflation is affecting everything. I am old enough to remember Gerald Ford's WIN campaign (Whip Inflation Now) and know that inflation is not a problem to be fixed with slogans, or overnight.

As costs go up, consumers have to decide what other expenses to cut. This is a very personal decision as each, and every reader’s situation is unique. Single or dual income, major expenses (home, auto) paid off or not, educational expenses, number of kids at home, Etc. Each of us must decide if we need to cut costs, where we need to cut costs, and by how much. I would like to share a perspective on this topic related to home upkeep costs.

One of the biggest tools for growing wealth in this county is home ownership. Home prices can dip in a tough market (of note, they have not dipped much yet), but – like the stock market – the long-term trend is appreciation. Years of paying a mortgage, instead of rent, give you full ownership of a valuable asset that is the foundation of most people’s wealth.

Once paid in full, that home continues to appreciate; even as you live ‘rent-free’ from month to month moving forward. As folks retire and income declines, owning your home outright is important. The big home you raised a family in can be ‘downsized,’ freeing up value for use in retirement.

Homes need upkeep, however. Maintenance, repair, and upgrades. Roofs do not last forever. Homes need to be painted periodically. There is a cost to keep this asset, this foundation of your wealth, in undamaged shape. There is also a cost for not keeping your home in undamaged shape. That cost is lost value. Upkeep has a cost, and ignoring upkeep has a cost. Nothing in life is free.

Remember this as you consider where you need to reduce expenses. Not every home maintenance or repair project is as important as every other project, so consider which upkeep expenses to defer without the cost of future work increasing. Older interior paint, for example, is mostly an aesthetic issue. The color may no longer be appealing, but the damage is increasing. Failing exterior paint may be allowing unprotected wood to rot, and damage will grow worse when the project is delayed.

Whether you intend to do a project yourself, or hire somebody, the decision to move forward or delay to save money should consider whether added damage will occur, increasing your future cost and negatively impacting the value of your home.