So the worst-case scenario has happened: you’ve run out of money. Too bad you’re only midway through your household renovation with a lot of work still left to do.
So what do you do? Well, the answer depends on the reason why you ran out of money in the first place. Let’s explore those reasons to find out how you can get your project back on track.
An Unexpected Emergency Happens
The best-laid plans rarely go off without a hitch. Even professional contractors run into unexpected emergencies, and it’s bound to happen with your project, too.
An unsecured line of credit may offer short term budget help in your crisis. This option bridges the gap between your lackluster budget and your emergency, giving you the funds to take on what you need.
But what exactly counts as an emergency? Certainly not the “need” to replace your snot-green shag carpeting!
Reserve an unsecured line of credit for the things like the following:
- A personal injury that results in unanticipated medical bills and hospital parking fees.
- Drywall work shows your wiring is dangerous and needs to be brought up to code urgently.
- A simple bathroom renovation reveals old water damage or mould you weren’t expecting.
Your Contractors Bails
It’s not something that you want to think about when you first start a reno. Unfortunately, it happens more often than you think.
An MIA contractor can twist your budget into knots and leave your home in shambles.
According to the lawyers at NOLO, a free online legal advice service, you have two options.
- If you’ve only paid for work and materials completed up until they disappear, there’s not much you can do. You’ll have to wait until you have the budget to find a new contractor who will finish the work.
- If you’ve paid for work or materials that have yet to be done, you may be able to take them to court.
You Didn’t Budget Properly
Sometimes, you can’t blame luck or someone else’s negligence. Sometimes, you have no-one to blame but yourself.
Running out of money mid-project usually means you underestimated how much your renovation will cost. You didn’t price out materials, labor, and licenses correctly.
You should ask yourself a couple of questions at this point.
- Can You Prioritize Work? If you must leave some of the reno incomplete, cut non-essential or decorative aspects. For example, make sure you prioritize an electrical job before you put up wallpaper.
- Can You Postpone Work? What if you wait to save up what you need? It’s not ideal, but it may not be the end of the world, depending on your project.
In the middle of a project, budgeting mistakes are a huge pain. They cause stress and frustration during an already difficult moment in your life. But they happen nonetheless if you don’t plan properly.
Remember these tips if you run out of money, but use the experience as a lesson. The next time you gear up for a renovation, make sure you boost your budget and expect the worst.