A roofing project in Utah can be a costly proposition, but there are many ways to finance it. The lending industry has no shortage of loans that can give you access to cash practically in an instant.
However, nothing can still beat cash. If you have adequate emergency savings in the bank, a roof repair or even a roof installation in Salt Lake City, Herriman, Draper, or Holladay, is less of a financial burden. A sufficiently stocked contingency fund can help you tackle your home improvement with a clear mind, which can protect you from loan sharks that exploit desperate individuals whenever they smell desperation.
But then again, realize that you should not touch your cash in reserve as much as possible. Since a broken roof does not automatically justify a withdrawal, should you use your emergency fund for it? Answer these critical questions first:
How Much Does It Cost?
An emergency fund is intended to help you get by amid major financial storms like a job loss or a severe illness. If the estimated cost of your project is less than $1,000, you might want to use your rainy fund instead.
Most of the things you can pay for with a credit card or a payday loan should be paid using your rainy day savings. You should reserve your other funds for bigger surprise expenses so that you can cover them in full more quickly.
How Urgent Is It?
Emergency savings are for real emergencies. If your roofing project can wait for a couple of days, you might want to leave your contingency fund untouched.
An experienced roofer could tell you how much time you have to address the missing shingles, rotten fascia boards, or sagging gutters without experiencing water intrusion. That is why it is imperative to hire someone adept in your roofing system to get reliable advice.
If you turn to a contractor that specializes only in replacement, you might be advised to buy a new roof even if your current one only needs an economical repair.
What Are Your Best Alternatives?
Cash is king, but you should not rule out credit if you have the luxury of time to borrow money from another party.
Plastic should be your first choice, for you might be able to tap it without paying any interest. You can use the grace period your credit card allows to foot the bill at no extra cost. Fund your roofing project through plastic can earn you great rewards, like a sign-up bonus.
If your homeowner’s insurance policy covers roof damage, you might be able to file a claim. You might have to fork out some money, but your deductible is easier to shoulder than the total project cost.
Your emergency fund should be your money of last resort. It can be tempting to spend, especially if it is big enough to help you get by for three to six months without earning an income, but you should be disciplined to leave it alone until your real hour of need.