Where Should I Spend My Money?

If you are reading this, you more than likely own your home. According to data research in March of 2024, Minnesota is in the top 10 of homeownership with 72.1%. So almost ¾ of us own a house. Part of the American dream right. Well, what comes with owning a home? Maintaining and updating your home. I’ll venture to say you didn’t think about that when you were signing those closing documents. You were just so excited to have a place to call your own. A garage to park your car in. Or a bathroom that is only accessible from your bedroom. A basement that is unfinished but you can see the spaces you want to hang out in. Your own kitchen where you can organize it your way, with your mom or dad’s help right?

Let’s face it. You love your home. But there are some spaces that need some help. Maybe you bought it knowing you were going to knock down that wall and open up your kitchen. With only one bathroom and 3 bedrooms, you have been thinking about adding on to your home to give you a dream ensuite. Whatever your visions are, it is going to cost money. That money you worked hard to earn. So you want to spend it right. In our conversation today, I want to break down some of the ideas or thoughts of spending your hard earned cash on your dream home.

Where should I spend the money? What spots are the best return on investment? Well to start with, your kitchen and bathrooms are always a good spend. Those are the most costly, but also add the most value. Why? Because it is where we spend most of our time. Think about it, if you are like me, when my kids come to visit we almost always spend hours in the kitchen. Either making something, snacking, or just sitting at the island in deep discussions. It’s called the heart of the home because it is where we are the most real. The trend to open up the kitchen into the rest of the home makes sense. It allows that feeling of comfort to fill the spaces. So when you ask, should I spend the money in the kitchen, the answer is yes. Whether you are planning to sell in the near future or it’s your forever home, it is worth it. On average you will probably spend between $40,000 to $100,000 depending on the size and complexity.

The next best spot is the bathrooms. Think about this. Where do you start and end your day? The bathroom right? With the pace of life, the stresses of your job, or just a desire to soak, our bathrooms are turning into our own private spas. And why not. You work hard and deserve a space to unwind. Again, these areas are areas we spend time in. So investing in them is always a good choice. The cost of redoing one of these spaces will range greatly. It could be as small as $15,000 or as much as $90,000. For good reason. Are you adding in a full walk-in shower? A soaking tub? Doubling up your vanity space? Is there space for it? Can you move a wall? Do you need a closet as well? There are a lot of variables but again, asking the question is it worth the spend? Yes absolutely!

Now, I know our focus today was on the kitchens and the bathrooms. But there are hundreds of square feet left in your home. Where should I spend the money? Spend the money on the spaces you use. The dining area, the family room, the laundry room. Spend it in the places where life takes place. Exteriors are good for the neighborhood, and depending on the shape it’s in, keeping the elements out. But most of the time the money spent there doesn’t add that much value. So ask yourself, where do we live in the house, and start there.