I feel like a confession today. Over six years ago we purchased our first home and have been steadily making progress on the house ever since. We have done everything from painting kitchen cabinets, painting walls, more painting, renovating our patio, and getting our children situated in their rooms. We have also outsourced things like getting a new roof, knocking out walls, landscaping, new furnace, and new air conditioner that were all desperately required updates on our late-sixties home.
We are coming to the end of the DIY road and now moving into uncharted territory…a major home renovation. We will be knocking out a wall to create an updated family room complete with built-in storage and fresh new drywall with crown molding. We are finishing our basement to create a private home office that will be away from the family chaos so I can write my first book (editor’s note- let’s see if anyone actually picks up on what I just said). We will also be creating a walk-in pantry with a cubby for our kitchen computer. To top it off, we are getting new flooring throughout our home.
We will be doing all of these home improvements and paying for them with cash that we have been saving. Truth be told, we are paying for all of our home renovations with the money that I earned from my site. Although we don’t do “his” and “hers” accounts, we keep my income in a separate account to track income earned and business expenses. That account is where we will be withdrawing the funds from to complete the project.
I have gotten some criticism from family and friends that we should just move into a new house and skip renovating this home. If the housing market was better, if there were better houses on the market that fit in our budget, and if I had a desire to get out my neighborhood, I would…but I just don’t. I didn’t pour all of this money, blood, sweat, and tears into this home to abandon it because it is lacking two rooms that I would like. It makes more sense to me to invest in the home that I have learned to love so much and make the most of it. These renovations offer a long term solution for making the most of our space as our children get older.
When I think about it, it makes my heart beat really fast and I find my hands getting sweaty. Spending money makes me do that. Spending this will greatly diminish the financial cushion that I love so much. It doesn’t mean we will be eating beans and rice every night, but it will mean careful management and hard work to restore the cushion again.
You just can’t be a frugal blogger and not address something major like pouring money into a home renovation. I am very proud that we can pay cash for it, that we continue to live in a home that is within our family’s budget, and that we will be able to renovate our home to accommodate our family’s long term needs.
I look forward to sharing with you what is happening in our house, how we saved on our projects, and why these renovations will offer long-term living space for our family.
Why am I telling you this? Because I want you to know that we are still living within our means. Still paying cash. And still committed to a life of no debt. I want you to know that we even bartered my husband’s web design services to save on the project. I want you to know that the reason this blog works is because I am authentic and committed to the goal of living my life on a budget.
Basically, it feels good to share it with someone who understands the beating heart, the constant questioning of yourself that you are making the best choices, that even though you save so you can spend on what is important that it is so incredibly hard to part with your money, and that is still cheaper in the long run to update your home then to move and start paying on a new mortgage, and I am absolutely making the right choice. Can you tell me that?
Are you saving for a long term goal in your family? What is a dream project, trip, or family experience that you have been saving for?
An awesome post on so many levels, Amy! WTG for staying out of debt, for paying for your house with this BLOG (wow, would i love to talk about that!), for doing SO much renovation on your own and oh yeah, WRITING A BOOK!
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Thanks for sharing.
You inspire us & it’s good to know that you’re earning money as you encourage all of us!
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First of all, congrats on writing your first book! I look forward to seeing what you have to say.
What a wonderful accomplishment and wise decision. It must feel fantastic to be able to make a home you love grow to fit your family’s needs… without have to (ugh) borrow money.
We’re just chipping away at updating our 1969 home… right now, it’s a lot of wallpaper stripping. But the major project I’d love to undertake when we have the savings to do it? Tearing out the shag carpet in the downstairs playroom and replacing it with kid-friendly laminate. That will be a lovely day!
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WOOOO HOOO!
Writing your first book?! Knocking down walls?! Paying with cash you earned from this site?! Crown Molding!?
Some of my favorite things! I am so, so thrilled for you. And everyone who reads your blogs/sites/book{s} should be proud and thrilled that moms can stay at home and follow their passion and still contribute greatly to the family’s finances. Thanks to you for sacrificing your time to give us useful, information that is so worth it to us.
I for one am so glad that you have been compensated for your hard work.
GO MOMS!
And PS, I love that you are adding onto your house–what a great solution!
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I can’t wait to hug and talk with those of you that are coming to BlissDom in person! You guys are like the best cheerleader squad ever!!
We will be using all of the space we already possess and waiting on the addition until a later stage in life. For now, we are creating the pantry out of our garage space and the office will be made from the unfinished basement (which will need to be cleaned out for the new space).
Thank you guys so much for your heartfelt enthusiasm and for supporting us in this decision to update our home
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That’s definitely worth celebrating! Congratulations on having your hard work, sacrifice, and sweat “pay” off!
Excited to see you at Blissdom!
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Without knowing it, we have been going down a similar road with our homes. We purchased ours a bit over 3 years ago and did nothing for the first year. We just wanted to live in it and see what we liked, didn’t like and what were the top priorities.
We’ve mostly done rehab on things you can’t see. A new heat pump, a new water heater, new disposer, new filter on the pool. We did put in a new side door and update that and next up is a new set of French doors on the back and lots of new carpeting.
The BIG project may be on tap for the summer. We just haven’t decided to let go of our cash cushion. We want to redo our master bath. It’s usable, has no problems but we know we need to make modifications to get top dollar out of the house when we sell. Our plan is to sell in about 4 years. We figure we could at least enjoy the modifications if we have to make them.
The difference between your blog and mine is that you have been online far longer. I have miles to go before I am in your league and can feel comfortable about the blog income.
Thanks for sharing your story. It lets me know I can be a success too if I only do the work and maintain focus. I needed to hear that today.
Ginger
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Amy Reply:
February 1st, 2010 at 2:21 pm
Ginger- I should clarify and say that while my blog does earn a modest income, it is the opportunities that come from my blog that generate the income that we needed to compete the project. I do a lot of freelance work (writing for other brands), consulting, and spokesperson work that generates the real revenue. That said, without the blog those opportunities would not be open to me so it was essential for the earned money
I am always happy to help guide or talk about any of this. Anyone who knows me knows I am an open book (as contractually as one can be)…thus why I had to confess today 
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Very cool to see how staying out of debt can bring you to love your home.
As a college student, I look forward to being able to be in a similar situation, where I am able to do my renovations without going into debt.
I appreciate this confession
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I think it’s great that you’re renovating your existing home. Moving is such a pain and an incredible disruption. You’ve already poured so much energy into your house to make it a home, that you should keep going.
We’re not really saving up for anything big. We’re trying to establish a “cushion” though. We live debt-free, except for our old student loan debt, which we pay ahead on every month. Hopefully someday we’ll be able to save more.
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I understand that “sweaty hand feeling” at the thought of spending the money that took so long to accumulate! We have a nice used Suburban sitting in the driveway that was purchased the same way. We needed it – we saved for it – we paid cash for it. Now we start rebuilding the savings for new siding. Debt-free living is hard – but so worth it!
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Congrats! A great post, indeed. Being frugal is all about saving money for what’s important. Sounds like you have quite a project, but it will be so worthwhile!
I can’t wait to hear about your book! So exciting!
Right now, we are pouring every extra cent we have into paying off my student loan. So far we have succeeded in reducing it from $12,000 to $7,000 in just five months! Amazing – since we live on my hubby’s income as a mechanic – a darn good mechanic he is
Once we have that paid off (hopefully by summer), we will be completely debt free except for the mortgage.
Keep up the great work, Amy! Wish I could meet you at Blissdom!
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way to go, amy!! i can’t wait to see your projects progress
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This is amazing, wonderful news! I’m so glad you’re staying in the special home where you’ve built so many memories and poured in so much love and effort. The remodel sounds so perfect, and your efforts to save and pay for them outright will surely be rewarded. Congratulations on investing in your family; may you reap endless rewards from this careful decision!
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Lots of congratulations in order here! Your first book??? That’s fantastic!!! Congratulations!
And congratulations on starting your home remodel. I don’t think that being frugal (or being a frugal blogger) in any way means that you can’t spend money. You’re doing it in cash and that’s awesome!
Being frugal isn’t an end unto itself. The point isn’t to create some big pile of money that just sits there forever. Saving money is a great thing but you’re supposed to be saving for a purpose. To be prepared, to give and to LIVE.
I am so excited for you and I can’t wait to see how things go with your BIG project! And I can’t wait to see you later this week!
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Amy Reply:
February 1st, 2010 at 2:52 pm
Kimba- That is such a good point “The point isn’t to create some big pile of money that just sits there forever. Saving money is a great thing but you’re supposed to be saving for a purpose. To be prepared, to give and to LIVE.”
I love this! I feel like a part of me has always felt insecure about spending anything because of our difficulties of unemployment and job insecurity. Letting it go towards this project is a first step for us. It is knowing that God will take care of us and that we can put a little bit of purpose behind the savings. We will still be saving and still living within our means, but it will be wonderful to do something we have thought long and hard about.
I can’t wait to hug you, Kimba!!
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Congratulations, that is a HUGE accomplishment. I hope your remodeling adventure goes smoothly. I’m sure that you will be thrilled when it is complete.
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That’s so fabulous, Amy! The book… the remodeling… the cash… but what I appreciate the most is your hard work and honesty. I simply can not “look up” to a “frugal” blogger who talks the talk but doesn’t walk the walk.
As for our own dreams… Our 15-year mortgage should be paid in 2 years (a total of 5 1/2 years)and then we have some basement and kitchen projects to look forward to. It may take a few years, but I absolutely refuse to go into debt for something that isn’t an absolute survival NEED (of which there are so few in our lives).
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Amy Reply:
February 1st, 2010 at 3:20 pm
That is AMAZING, Amy! We are still working towards paying down the mortgage, but have no credit cards or car payments. We have almost reached the goal of paying off my husband’s student loans (which we will be celebrating soon!) I agree that it is hard to read someone who isn’t walking the walk, I think that is why I had to open up and share because I don’t want anyone to think that we are doing anything but paying cash for what we do. I am so proud of you for reaching your financial goals- that is amazing!
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I think your plan to pay cash and make your home what you want is a great idea. I get so frustrated by people who always want to “upgrade” to the biggest and best but have no savings to fall back on. My husband and I have been living frugally because we want to pay off our $165K mortgage in 5 years. We are making great progress, but often we get the line that we are “cheap”. I don’t consider us cheap at all. We have nice, not new, cars, go out to dinner, have friends over for dinner, and go to Europe on vacation every year. We choose what is important and spend our money on things we value, just like you.
Congratulations!
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Amy Reply:
February 1st, 2010 at 3:21 pm
What a feat to pay that mortgage off that quickly, but how amazing will that feel when it is done, Kate! I am so proud of you! I get the same impression that sometimes people don’t understand our intentions. I think it might surprise people just how happy we are NOT to spend
Thank you for sharing about this!
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Congratulations, Amy! Wow, that’s a lot of accomplishments – but especially, congratulations on the book deal. That must truly be a dream come true!
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Cathy- I am still in proposal stage. We are waiting for the rest of the marketing portion for the proposal, but my literary agent is amazing and I am so hopeful that this book will get sold this month! Thank you so much for your comment!!
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That’s all awesome news. The book, the house, everything sounds exciting. We have been talking a lot about what we are doing and where we are going lately. We’ve been “coveting” a bigger, nicer home for a while now, but we’ve realized it would be much better in the long term to do what we can to make this space work for at least a few more years. We’ll soon have four kids to find space for, but we can do it, and it is far better than stressing over whether we can afford a bigger mortgage payment.
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My hands get sweaty when we bought a new laptop this weekend. $500 may not be a lot for a laptop or seem like much to some but to me, I got a little jittery so I couldn’t imagine spending on a major home renovation. Congrats on making your house the home YOU want it to be while being able to pay for it!
Congrats on a new chapter in you life both with the house renovations AND the book!
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I clip coupons and watch sales so we can travel. Last fall we had just returned from a wonderful 2 week trip in southern France. I was checking out at WalMart with my long list of matching ads and coupons when the gentleman behind me sighed quite loudly and impatiently. After shooting him a glare, I smiled at the cashier and said “We just got home from France. Paid for the trip with coupon money”. She was impressed and the rude guy behind me looked quite embarrassed!
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wonderful post as always. i think it is a fantastic to stay in the home you love and make the changes you need. i can’t wait to read all about it. and you’ll rebuild that financial cushion again – i can’t wait to read your book too!
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Awesome post and fantastic blog – you go girl….such an inspiration for me!
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How exciting! I can’t wait to hear all the updates on all of this! Thank you for being open with all of us. It can be hard to cut loose of that cash, even when you’ve been saving/planning for something in particular and then have to restart your saving. My husband is like that….we save & save, which is good, but we have no particular goal in mind. It is very hard for him to cut some of it loose for very deserving things.
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That is wonderful, good for you! We are working toward that ourselves. After living our 20s and some of our 30s not really abover our means, but certainly not below, we are focusing on saving, then working towards some renovations that will be paid for in cash. My husband has a business opportunity that may significantly raise his salary, but we are determined to continue to live at our current level and save the rest!!
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yes, I noticed you said you would be writing a book. I can’t wait! Good for you for making your house the home that fits the needs of your family and living within your means all the while.
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Right now my family is saving every penny to pay off my student debt. We’re on track to pay that off by August. Then we’re hoping to start saving for new carpeting upstairs, a new camera for me, and a deep freezer to make freezing meals easier. : ) I’m frugal because I like to spend money. The more I save the more I have to spend on a big purchase instead of a lot of wasted $20 decisions.
Ashley
Beauty4Moms.blogspot.com
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Wow! New book and “New” homed… that is awesome! I can’t wait to read your book and also see pictures of your renovations (hopefully you will be posting pictures of them).
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Congratulations on your accomplishments… and don’t ever be bashful about being proud of your accomplishments. You work hard and live frugally so that you can enjoy a simple, happy life! Celebrate that!
(Oh, and I’ll gladly pre-order your book – just tell me how!
)
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What is the book going to be about??
Have you choosen your contractors yet??
Just curious…I know a couple of
good guys tt recomend…
God Bless, Pam, South Bend
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Hi Amy, A big hug and congratulations to you. As someone who has done major house renovations (basements and 3 bathrooms while I was pregnant with #2), I understand your desire to stay in your home and make it the way you like it. I’m awed by your talents. As for the book, I have no doubt it will get sold and it will be a great read.
I look forward to following you thru your renovation. We currently making our laundry room a LR, mudroom and pantry, & I am such a freak about organized stuff, I can’t wait.
Anyway, I hope to see you at a blogging event soon. I bought early reg and a hotel room for Blissdom but cannot go at the last minute, due to some family issues. I am so bummed. Very much enjoyed talking with you at J&J, SL & Sony.
Congrats again!
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Kudos to you for finding a solution to make your house work for you…in this throwaway society, it is truly refreshing for people to adapt and make things work, be flexible and not just ditch it and move on.
Congrats on the exciting book news, can’t wait to find out more.
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This is such exciting news! The book and the cash project! I can’t wait to see the finished project!
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This is such exciting news! The book and the cash project! I can’t wait to see your renovations when they are all done!
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Congrats on writing your new book! Also, I am a huge fan of fixing the house that you live in (we have been doing the same thing for three years – the largest DIY project ever for my husband). I feel that there are way too many new homes being built and not enough of taking care of what we already have! Kudos!
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Amy Reply:
February 2nd, 2010 at 10:15 am
I feel the same way, Katie!! I know that your family is doing the same thing right now and seeing your new space is so inspiring. I wish my hubby was more of a DIY-er, but he is so great to have on hand for my website
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Congrats on so many accomplishments! A book is so, so exciting, and so is a major house renovation.
Living debt-free is so empowering. What an inspiration!
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Can’t wait to see what you do with your home and can’t wait to read your book! It is so amazing that you are able to do all this while staying out of debt. You are such an encouragement to me and a real role model. Thanks so much!!
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Wow, I am so overwhelmed by your responses- it means the world to me to know that I have your support. I am so thankful to have such amazing people in my life that support me. Thank you, thank you!!
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Well done, Amy! I know what you mean about the financial cushion, it makes me nervous to take anything out of it. But you are doing so well and you are an inspiration! Plus, I can’t wait to read your book
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Amy, I’m excited to see what else is coming! You have been such an inspiration to me to pay off our debt and live within our means. Thank you for everything you do on your site. I can’t wait for the book!
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Good for you! Take it from someone who learned the hard way…we sold our 1950′s home in 2001 and moved to a new, bigger home. Don’t get me wrong, I love our new home but there are many days that we wish we would have stayed in our old home and done an addition.
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Oh Amy – Congratulations! How exciting! I know just what you mean about pouring all of that work into a house – we’ve been doing the same. And a book!!! That is so awesome. I can’t wait to read it. I am still so grateful to you for all of your patient advice when I was trying to figure out how blogging even worked. You are one of the classiest ladies I know, and I am happy for you!
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Congratulations!! You are such an inspiration. We still have a few thousand to go to get completely out of debt. I can’t wait for the day we feel like we’re actually putting money away and then if we want or need to do something bit, we will have the money we need for it.
And I totally understand about not wanting to leave your neighborhood. I love where we live, and if we stay here long term I’d someday love to renovate the kitchen because it’s just not big enough anymore. A neighborhood you love is priceless. You can find a house anywhere, but it is so much better when you LOVE where you live.
And CONGRATS on your book – that little comment didn’t slip by me!
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GOOD FOR YOU!! Enjoy the process and the fruits of your labor. I can absolutely relate to the need to be upfront and honest on the blog.
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Oh, and I already cannot wait to read teh book
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I can only speak for myself, but i am so pleased that you shared those thoughts with us today! You remain a important motivator for me on this frugal living journey. I respect and delight in your ability to pay for the major renovations in cash and not go into any debt! That is most definitly worth sharing with your penny saving audience. Can’t wait to read your book- you will have to autograph it for me! Have a blast at Blissdom- Heather
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Amy we are starting a renovation this spring after we pay off our badly in need of repairs home in 2 months – all from money my husband and I have made by working from home. Congratulations to you!
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Moving is expensive! If you are happy with your location and neighborhood by all means update your house.
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No one will enjoy that room more than your family, knowing it was born of your own hard work and dreams.
I am so proud of all you are accomplishing!
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Great article – very insightful! Impulse spending can also influence how much we spend – or save. I liked this article: – Kicking the Habit: How to Put a Halt to Impulsive Buying http://bit.ly/pwv331
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