| Paying Cash |
|
The question was asked earlier in this section: How will you pay for finishing your basement? Various options were mentioned. Let’s consider each option in more detail because they each have additional costs whether in interest paid or interest lost. Cash is good. In fact, if you can pay for your basement remodeling project in cash you typically can earn a small discount from most suppliers. The discount can range from 2 to 10 percent of the total. To get the discount, speak with the manager of various material suppliers in your area to find out who has the best net (after discounts) prices for cash transactions. Remember that even if you are borrowing the money to finance the job, a supplier that receives payment within ten days of the purchase probably will give you a same-as-cash discount. Some folks with smaller basement remodeling projects use cash on a pay-as-you-go basis. That is, they set aside a specific amount each month from savings, regular income, or a combination of both, and buy what they need once a month. They then install it over the coming month. The remodel is then paid for by the time the work is done. No interest.
|
