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Shall I use the emergency fund or take out a loan to remodel the kitchen

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My wife wants to remodel the kitchen. But have no strong savings except the emergency fund. Will I use it for redo the kitchen or take out a loan for the purpose?

The average cost of an upscale kitchen remodel is more than $80,000. So, you must think how much you can afford to spend.
Interest rates are still low, so taking out a home equity line of credit (HELOC) or home equity loan could be a wise financial decision.

Sub: #1 posted on Wed, 06/14/2017 - 06:51

tiarajoseph11 tiarajoseph11

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As you don't have a decent amount of cash rather the emergency savings, you should consider HELOC or a home equity loan.
It'll be smart move to protect the emergency fund and using your borrowing power.

Sub: #2 posted on Wed, 06/14/2017 - 06:59

Barbara Delinsky Barbara Delinsky

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Most of the people commit a mistake by using their emergency fund for unnecessary expenses. One of the most common examples is home remodeling or kitchen remodeling.

Dear, is it a necessity? If it is a roof leakage or plumbing and other property damages, your emergency fund.

I will suggest not to take out any loan for this purpose. Since it is not an urgent requirement, save a certain amount every month for it. Set this as your short-term financial goal. I will assure you that you can save the required amount very soon. Good luck!

Sub: #3 posted on Thu, 06/15/2017 - 05:50

Sanders Patricia Sanders Patricia

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It is better not to use your emergency fund for kitchen remodelling. Either save the amount or if you have equity in your home, tap it to take out a low-interest loan.

Sub: #4 posted on Thu, 06/15/2017 - 05:58

Good Nelly Good Nelly
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It's a wrong concept that you have to spend $80,000 or $50,000 for remodeling your kitchen. There are tons of tips to remodel your kitchen by spending only $2000. One of these tips is to pain the cabinets in warm white shade.

Sub: #5 posted on Thu, 06/15/2017 - 21:21

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