For those who know us it will come as no surprise that as a couple we have different levels of tolerance for financial risk. We generally run our household very conservatively and stay safely in the comfort zone of all household members. We consulted with a financial advisor before taking on this project and he remarked that he rarely worked with anyone who lived so far below their means.

We always knew a project like this would be risky and tax the system. We discussed this in advance and at different intervals as we’ve gotten under way. This is a bit more stressful on one of us than the other.

But this particular week has blown well past any comfort level we might have had.

Up until a few weeks ago, we had paid all the expenses of this project out of pocket. That includes big stuff like $9500 for the demolition job and a $10K deposit on our window order, as well as small stuff like plumbing supplies, silt fences, and port-a-potty rental.

Then in late August we had to order all the framing material to build the house. It was $5K cheaper to get it from Menards, plus another 2% rebate for using the Menards Big Card. So I put $33,000 worth of wood products onto 26% interest credit cards. Having less than $10K in the bank and $40K in credit card debt is, thankfully, a completely novel position for us to be in.

After waiting for a few other invoices to come in, I finally filed our first loan draw on Monday Sept 17th. Why wait so long? Well, there are fees every time you initiate a draw, plus once you borrow money from the construction loan the interest payments begin. Particularly given we were stuck for so long in the permitting process, it seemed prudent to put that draw off until we really needed it. And by mid-September we really needed it. Having paid most of our bills, but staring down a $29K credit balance we’d sure like to pay off, we were finally both feeling significantly nervous.

Then on the 18th, one day after they were scheduled to start the framing work, our framing contractor calls and says he can start next week, but to do that he’ll need an $8K deposit. This was not welcome news, particularly since he had explicitly said prior that if we purchased the materials ourselves then he would not require a deposit. After some negotiation, we handed over our last $5,000 to this extortionist, and got things back on schedule. Another $6K trip to Menards for wall insulation on credit, and we’re now completely broke, carrying $35K in revolving credit, and holding an invoice for another $34K from our foundation contractor.

We are in uncharted territory, boldly adventuring where our checkbook has never gone before. If all goes well (and so far it seems to be humming along smoothly) then we’ll get a check on Monday for over $55K which will clear our outstanding debts and put us right back where we were in April. And if something goes horribly wrong and we don’t get that loan check by Oct 1 then we’ll need a cash advance on our last credit card to make rent. I told Amy “hey, at least we aren’t down at the Title Loans place yet!”  That I’m still alive to write this post means she clearly didn’t kill me after that silver lining statement.  🙂