Hey everyone! I'm curious about how you funded your backyard renovation projects, especially if you've taken on something significant like a $40K+ overhaul. My contractor quoted us $55K just for redoing the backyard with new concrete and irrigation, and that's not even including the patio cover, furniture, or custom BBQ grill and fire pit. We're looking at potentially spending around $80K overall. My wife is considering borrowing $40K from her 401k, and I'll be using some of my savings for the rest. How did you guys manage your payments for similar projects, and was it worth it in the end?
3 Answers
I did the labor myself on my backyard project, which saved me about 75%! There's plenty of DIY advice out there, especially on YouTube, which can help you do a lot of the work if you're willing to put in the time. Just be cautious with spending that kind of money if you can avoid it.
Definitely! Just remember that while DIY might save you cash, it can become quite the project without the right skills!
For my backyard overhaul, I used a combination of cash from savings and a HELOC (Home Equity Line of Credit). That way, I didn't touch my retirement savings, which I consider a BIG no-no for home projects like landscaping. It's essential to consider the cost vs. potential return, and landscaping usually doesn't add much to your home's value compared to kitchen or bathroom renovations. If you're set on doing it, scaling back the project to phases can make funding it easier!
Exactly! And if you focus on DIY where you can, you'll save a lot more money.
Good advice! Dividing the project into phases can help spread the cost over time; plus, you can still enjoy parts of it along the way.
Honestly, borrowing from a 401k for landscaping is a risky move! You'll miss out on the tax-deferred growth of your retirement savings. If you've got savings outside of retirement, I recommend using that instead. If things get tough financially, it might be easier to dip into your savings. Also, are you really "going half" on this project? It sounds a bit odd to finance such a big undertaking separately.
I totally agree! Taking from retirement for something like this seems questionable. It's one thing if it's an emergency, but for landscaping? It would have been better to save up or at least break the project into more manageable chunks and do some of the work yourself.
Yeah, it's scary how much you can lose in potential retirement gains. Hope they reconsider!
Right?! I managed to turn a $20K project into only about $5K by doing it myself. It’s all about learning those skills!