I agree. For most Americans who don’t have adequate savings for emergencies or towards retirement, that 8% might be too high. Probably should have noted this in the post. The study actually found a much bigger percentage in most parts of the country.

By the way, what we’re actually looking to spend is somewhere around 2.5%, much less than the 5% we originally budgeted. We also plan to do some of the improvements “over time” like you mentioned.

I think budgeting 8% for home improvement is a bit over the top. The savings rate for the average American is now below zero–I think a higher priority for that 8% would be towards investment and savings.

Because home improvements are a generally a poor investment, returning less than they actually cost, it would probably be better to do them more cheaply, over time, and invest most of that 8% elsewhere. Like the stock market.