Suze Orman: 3 Ways To Afford Home Renovations If You Plan To Age in Place
Many retirees and soon-to-be retirees prefer the idea of aging in place to living in a retirement home or long-term care facility. There are pros and cons that come along with the various options, as well as a range of associated costs.
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If you plan to age in place, it’s important to make the appropriate home renovations that will make doing so feasible and safe. Because home renovations can get costly, Suze Orman recommends coming up with a financial plan now.
Here are Orman’s tips for making the process more affordable.
Focus on Needs Rather Than Wants
Orman recommends paying for renovations in cash rather than relying on a Home Equity Line of Credit (HELOC). This means you need to stick to the renovations that you can actually afford.
“Before you scoff that you can’t possibly afford to pay cash for your reno project, I want you to carefully consider remodeling work that is absolutely necessary to ensure your safety and comfort as you age,” Orman wrote in a blog post. “The focus must be on must-haves, not nice-to-haves.”
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Tackle Small Projects While Saving Up for Bigger Projects
You might not have a lot of cash to dedicate to renovations right now, so consider spreading these projects out over time.
“There’s no rule that you must do everything all at once,” Orman wrote. “Tackle projects at a pace that you can handle payment out of your regular cash flow. Just prioritize the most important fixes first. For instance, if you don’t currently have a room on the first floor that can work as a bedroom and has easy access to a bathroom with a wide enough door entry for a walker and a walk-in shower, that might be something to prioritize.”
You can continue to save up for larger projects while focusing on budget-friendly renovations to start. Orman gave some examples of these less expensive renovations: “Professionally installed grab bars in all the bathrooms can prevent a slip that can lead to a major injury. Replacing area rugs removes a trip hazard, as can improving the lighting to/from a bathroom.”
Consider Tapping Into Your Emergency Fund
If you have a healthy emergency fund, you may consider using a portion of it to help pay for the cost of these renovations.
“To be clear, I don’t want you to let your emergency savings dip below nine months,” Orman wrote. “And if you do tap your savings, I want you to replenish the account ASAP. But spending a small portion of your savings to make your home safe for an older you is an investment in your future well-being.”
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This article originally appeared on GOBankingRates.com: Suze Orman: 3 Ways To Afford Home Renovations If You Plan To Age in Place
