Paying for the Kitchen

I don’t often share figures but this post is definitely going to be an exception! We’ve been saving for the kitchen renovation since we paid off our debt in 2016. Our original budget was $20,000, however, as we began working with our vendors and really putting together our vision for the space at the end of last year it became apparent that this project will cost roughly $30,000.

As we had already committed to completing the renovation this year we bit the bullet and opted to make use of the 18-month interest-free credit option that the store offered.

We have $17,000 saved right now and anticipate there to be $10,000 worth of work to be completed still. Since that $10,000 will not be on a deferred payment plan I will be using my savings to cover it. This means that I have $7,000 to be the $16,596 credit card bill.

I’ve modeled 3 payment scenarios:

  • Paying off the card in 12 months, which was my goal
  • Paying it off in 17 months, which is probably more realistic
  • Paying off as much as I can in 17 months and then transferring the balance to my line of credit. The interest rate on the credit card is 28%! My line of credit is much more reasonable.

 

12 months 18 months 18+ months
February  $    1,383.00  $    1,383.00  $    1,383.00
March  $    1,383.00  $    1,383.00  $    1,383.00
April  $    1,383.00  $    1,383.00  $    1,383.00
May  $    1,383.00  $    1,383.00  $    1,383.00
June  $    1,383.00  $    1,383.00  $    1,383.00
July  $    1,383.00  $        807.00  $        330.00
August  $    1,383.00  $        807.00  $        330.00
September  $    1,383.00  $        807.00  $        330.00
October  $    1,383.00  $        807.00  $        330.00
November  $    1,383.00  $        807.00  $        330.00
December  $    1,383.00  $        807.00  $        330.00
January  $    1,383.00  $        807.00  $        330.00
February  $        807.00  $        330.00
March  $        807.00  $        330.00
April  $        807.00  $        330.00
May  $        807.00  $        330.00
June  $        804.00  $    2,730.00

(ML side hustle + 330)

 $  16,596.00  $  16,596.00  $  13,275.00
 $    3,321.00

Looking at these numbers, paying this off in 17 months is a bit of a stretch. I currently set aside $330/ month towards the kitchen renovation line. I think upping that to $807 in July is going to be very tough!

What I’m not showing here is that the $1,383 payments could probably extend pass June as it’s coming out of the $7,000 that I’ve already saved.  I’m going to do some fancy math here let’s see if it’ll make sense to you and future me.

Payment Savings
 $  7,000.00
February  $    1,383.00  $  5,947.00
March  $    1,383.00  $  4,894.00
April  $    1,383.00  $  3,841.00
May  $    1,383.00  $  2,788.00
June  $    1,383.00  $  1,735.00
July  $    1,383.00  $     682.00
August  $    1,012.00
September  $        330.00
October  $        330.00
November  $        330.00
December  $        330.00
January  $        330.00
February  $        330.00
March  $        330.00
April  $        330.00
May  $        330.00
June  $    2,730.00
 $  15,010.00
 $    1,586.00

This seems much more realistic and I’m sure that if I’m rather frugal I’ll be able to add a bit more to a few months so that way I don’t have $1586 moving to my line of credit.

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2 thoughts on “Paying for the Kitchen

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