Couldn't agree more about having cash on hand. When I built my first custom home, I thought I'd budgeted for everything—permits, materials, labor—but trust me, something always pops up. For instance, we hit a snag with the foundation prep; turns out the soil wasn't as stable as the initial survey suggested. Had to bring in extra gravel and compacting equipment, which wasn't cheap. If I'd relied solely on credit cards, I'd have been stuck paying interest on top of unexpected costs.
My advice: figure out your estimated budget, then add at least 15-20% extra as a buffer. Keep that money accessible—like in a savings account or money market fund—so you can tap into it quickly without penalties or fees. Credit cards are fine for smaller surprises or convenience, but for bigger issues (and trust me, they'll happen), cash is king.
Definitely agree with keeping a cash buffer handy, though I'd say 20% might even be conservative. From experience, renos and builds always have surprises—like when a client of mine discovered asbestos behind walls that looked perfectly fine. Credit cards can smooth out minor bumps (like last-minute paint changes or fixtures), but for bigger stuff, interest adds insult to injury. Better safe than sorry...and less stressed later.
I get the logic behind keeping a big cash buffer, but honestly, when we built our first custom home, setting aside 20% extra just wasn't realistic. We ended up relying on credit cards more than planned—yeah, interest sucked—but it gave us flexibility when unexpected stuff popped up (like discovering the plumbing layout was totally different from the original plans...). Not ideal, but manageable if you're disciplined about paying it down quickly. Sometimes practicality beats perfect planning.
Did you consider a smaller emergency fund (maybe 5-10%) combined with a low-interest line of credit instead? Might give you flexibility without those hefty credit card rates...worked for us during our kitchen remodel, anyway.
Interesting take on the line of credit...have you ever run into any unexpected snags with that? I'm planning a DIY home build soon, and while I like the idea of a smaller emergency fund (more money freed up for materials!), I worry about relying too heavily on credit—even low-interest lines. What happens if the bank tightens lending mid-project or something? Just curious if you've thought about that or had any close calls yourself.
