Title: Putting Money Aside "Just In Case" Or Relying On Credit Cards?
- 2% is a good start, but in my experience, it’s rarely enough. Stuff always comes up—maybe not every month, but over the course of a build or reno, it adds up fast.
- Last year, we had a project where the client set aside about 3% for contingencies. Thought that’d be more than enough. Then the city found an old septic tank under the driveway... that ate the whole buffer and then some.
- Credit cards are fine for points or convenience, but I’ve seen people get burned when they use them as a fallback. If you can pay it off right away, cool. If not, those interest charges just compound the pain of unexpected repairs.
- Honestly, I tell folks to overestimate their “uh-oh” fund. Worst case, you’ve got leftover cash at the end—which never seems to happen anyway.
Spreadsheets help, sure. But nothing beats having a little extra stashed for when Murphy’s Law shows up.
- Been there with the “surprise” costs. Had a site where we budgeted 5% for contingencies, thinking we were being cautious—then hit groundwater two feet down. That ate through our buffer and then some. Credit cards aren’t even on my radar for this stuff; interest just kills you if things drag out. I’d rather tie up a bit more cash up front than get stuck paying double later.
Credit cards aren’t even on my radar for this stuff; interest just kills you if things drag out.
Couldn’t agree more—credit card interest is a killer for project overruns. I’ve learned the hard way that 5% is rarely enough, especially for ground conditions. These days I’ll park 10-15% in a high-yield savings account, just earmarked for “what ifs.” It hurts to see that cash sitting there, but it’s way less painful than scrambling for expensive money when the unexpected hits. Groundwater, rock, utility surprises...they all seem to show up when you’re least ready.
