Going Broke For Vinyl Windows

Americans are spending thousands and thousands of dollars on home improvements.  Most home improvement projects do not pay back according to Consumer Reports.  Also most people move every five years, so someone else enjoys the improvement that you are still paying for on credit.  It takes a lot of $50 reduced heat bills to pay back $20,000 vinyl windows (plus interest).  I have witnessed families that have gone broke from credit spending on "necessary" home improvements only to move within a couple of years.

Home improvements are sometimes necessary or highly desirable.  I recommend the following careful approach:

• Use cash for all projects
• Save money for inevitable repairs and improvements
• Do some of your own work - especially if your cash savings demands it
• Think of all the other things you might do with the cash first
• Negotiate for lower prices since you have limited cash

Notice how using cash makes you think differently about this.  If I have only had $20,000 in cash savings, I would not spend all of it on vinyl windows no matter how quiet and efficient my home might be.  My kids want to go to college.  I might spend $5000 on a new roof that needs repair and we would put off the trip to Disneyland for a year.  Using finite cash automatically causes me to think about the effect of every decision carefully.  Use of seemingly infinite credit does not force any near-term decisions but there will be long-term consequences.  Don't go broke for vinyl windows.