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Even though they have to build a new foundation to expand the house, David thinks he can reduce the cost of the kitchen and bathroom remodel to between $80,000 and $84,000. Together, they have $5,100 a month in income, expenses of $3,600 and an emergency fund of $27,000.

Seeing that their finances are in decent shape, Suze wants to know where they are going to get the $84,000 for the remodeling. Holly explains that they already have an approved home equity line that they can borrow from.

It doesn't take Suze long to approve Holly and David's remodel—but with a small caveat. "Can you [Holly] work a little bit more to make some more money so that your husband feels a little bit more secure in doing this?" she asks.

The money lesson everyone can learn, Suze says, is to think before you spend. "If you're about to buy something and you have to put it on your credit card and all you can do is pay the minimum payment on that charge every month, I've here to tell you, you cannot afford it," Suze says.

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FROM: Suze Orman: Can You Afford College, a Wedding, a Divorce?
Published on March 04, 2009
Please note: This is general information and is not intended to be legal advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio, and a qualified legal professional before executing any legal documents or taking any legal action. Harpo Productions, Inc., OWN: Oprah Winfrey Network, Discovery Communications LLC and their affiliated companies and entities are not responsible for any losses, damages or claims that may result from your financial or legal decisions.

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