What We can Learn from the Big Three

GM CEO Rick Wagoner has publicly admitted to "letting [GM's] quality fall below industry standards," but just because the Big Three's "designs became lackluster" doesn't mean that we as a country can't take away something positive from this debacle.

Plan Realistically
Most of us have some experience with living beyond our means. While the Big Three's billions of dollars in debt are near unimaginable for most homeowners, the idea of going several thousand dollars over budget on a home improvement project is easy to grasp. The fact is, most big home improvement projects end up costing more than the initial estimate. However, by working with your contractor and keeping in mind that overages are simply par for the course, you should be able to come up with a realistic budget for the project, even if weather, transportation costs, or other incidentals drive up the overall price.

Design for the Future
Many have suggested that the downfall of the Big Three could've been avoided if these American car companies designed vehicles that focused on efficiency and economy rather than horsepower and flash. What can you take from this when investing in your home? Make sure that the additions and remodels you choose are not just ornamental; pick long lasting materials and focus on projects that will be as beneficial to prospective buyers as they are to you!

Eco-Friendliness Makes Financial Sense
Not to pick on GM (who have enough problems to deal with right now), but in a 2006 interview with Motor Trend Magazine, Rick Wagoner states that his most regretted decision as CEO is putting the EV1 electric car program on the chopping block.

While the costs involved in creating and maintaining an electric car are probably too much for the average homeowner to bear, the fact is that alternative energies and energy efficient appliances are not only readily available, but financially viable. According to HomeAdvisor.com (an online resource matching homeowners to contractors), eco-friendly home additions are "in." Requests for solar water heater installation have risen over 300% since this time last year; requests to install solar panels that produce electricity have risen by 773%! Since such fixtures generally end up paying for themselves, it's not just the environment that's reaping the benefits!

Lose the Frills
As the popularity of less expensive (but very dependable) cars has taught us: heated seats and automated side view mirrors might be nice, but when compared to overall durability, reliability, and efficiency, these luxuries pale in comparison. When investing in your home, there's nothing wrong with choosing fixtures and materials that you think are "neat," but when the cost of these items requires some skimping in other areas, there's a good chance your decision will cost you in the end. The best plan of action: start off installing the things you really need. Unlike your vehicle, your home is built to be upgraded; once you've got everything installed and running smoothly, it's a cinch to go back and install more decorative fixtures in the future.

Fix Mistakes ASAP
Analysts and experts have stated that many of the Big Three's (and the country's) woes may not have gotten to this level if a few changes were made years ago. With your property, the snowball effect of a small mistake left uncorrected can be just as debilitating for your household budget.

Consider the damage that can be caused by a small leak in your roof. The average cost for asphalt roof repair is about $588. To some, this might seem like an unnecessary expense, especially if the leak is not in a noticeable area. However, the water that seeps in through a breach in a roof can lead to problems with mold if left unchecked (the average cost of mold removal is $2,530). If that mold is allowed to spread, it can lead to rotting wood and an unstable roof structure (asphalt roof replacement averages $6,088), as well as pose a threat to your health!

When you notice that something is awry, there is little benefit in waiting to mend it. As much as we would like them to, property damage doesn't go away on its own. Though the hassle and cost of a speedy repair might seem a little inconvenient, it's nothing compared to what ignoring the problem is likely to bring!