Science Explains Why We Love A Good DIY Project






DIY projects are not a recent phenomenon, with examples like the Mechanick Exercises by Joseph Moxon published in the 17th century. Moxon created one of the earliest examples of DIY (as we know it today), describing how to accomplish a variety of tasks on your own such as wood joinery, blacksmithing, and map making, to name a few. 

It wasn’t until the 1950s when DIY really started taking off as a result of fewer work hours, and an increase in the number of people owning homes. And around the same time, a Swedish company, IKEA, started gaining traction. In order to save cost and prevent damage during transit, IKEA started flat-packing furniture in pieces and then shipping it to customers willing to put it together. While still popular today, there are those who hate building IKEA furniture. Fortunately, there is a straightforward solution with companies like TaskRabbit.

In 2012, one study found that participants assigned higher monetary value to furniture they put together above others that were identical, coining the term the “IKEA Effect.” The study, “The IKEA effect: When labor leads to love,” published by ScienceDirect.com, suggests the building process may produce positive thoughts and attachments to the project, and become a means to demonstrate one’s competence. Although, there are plenty of other reasons people choose the DIY route.

The DIY approach can save money, which can be used to purchase higher quality materials

According to Angi.com, around 81% of homeowners chose to perform home improvement work themselves in the early 2020s, and 62% of them cited cost savings as the reason. Material prices are on the rise, with a whole-house remodel running an average of $52,275, per AmeriSave.com. While there are certainly some DIY projects you should never do yourself, as they can pose dangers, completing some of the more straightforward tasks can save a significant amount of money. Especially considering that when hiring a contractor, you could be looking at up to 60% of the total cost going toward labor alone.

When homeowners take on a basic renovation themselves, the money that would be used to pay for labor can go towards better materials. According to thefarnsworthgroup.com, between 82 and 88% of DIY consumers across generations cite quality as the main driving force behind which brands they purchase. Essentially, doing the work yourself (when possible), allows you to put more money back into your home. As one poster on Reddit.com wrote, “When I DIY, I am able to pick and choose my parts, the quality of what I’m using, and can take as much time as I feel is necessary.”

It turns out DIY projects can be good for you

There are a few reasons why working on and completing a home project can be beneficial for your well-being. For one thing, DIY activities can help lower stress levels. Why? Because even straightforward projects demand concentration. For those with weighty subjects on their mind like financial worry or workplace apprehension, a project can force your brain to focus on what’s right in front of you, providing a reprieve.

You might even break a sweat, which is also a benefit of DIY work. Using your hands, employing balance and coordination, and operating tools all require some form of physical effort. Not only do you get a feeling of satisfaction from completing the work yourself, but the physical activity can release endorphins, a hormone that improves your overall mood. And fortunately, you don’t need to undertake large scale projects to reap the rewards either, as there are plenty of DIY home improvement projects to try before bringing in the professionals.





Source link

Leave a Reply

Subscribe to Our Newsletter

Get our latest articles delivered straight to your inbox. No spam, we promise.

Recent Reviews


What Is Invoice Factoring in Plain English?

At its core, invoice factoring (also known as accounts receivable financing) is about selling your invoices to a factoring company in exchange for immediate cash. You’ll usually get 70–90% upfront, then the remainder (minus fees) once your customer pays.

This is not a loan. You’re not creating new debt or taking on monthly repayments. You’re simply trading tomorrow’s receivables for today’s working capital.

👉 Forbes Advisor explains invoice factoring as one of the most practical ways small businesses improve liquidity.


How Does Invoice Factoring Work?

Here’s the play-by-play:

  1. You invoice your customer for goods or services.

  2. Instead of waiting for them to pay, you sell that invoice to a factoring company.

  3. The factoring company advances you 70–90% of the invoice value.

  4. They collect directly from your customer.

  5. When the customer pays, you receive the remaining balance, minus factoring fees.

Example: You invoice a client for $50,000. A factor gives you 85% upfront ($42,500). Your client pays in 45 days. After collecting their fee (say 2%), the factor pays you the rest ($6,500). End result: You didn’t wait 45 days to get paid.

đź’ˇ Pro Tip: Pair invoice factoring with a revolving line of credit for maximum flexibility in managing cash flow gaps.


Invoice Factoring vs. Invoice Financing

They sound similar, but there’s a big difference:

Invoice Factoring Invoice Financing
Sell invoices outright Borrow against invoices
Factor collects payment You still collect
Not treated as debt Loan repayment required
Transparent but higher cost Often cheaper but more responsibility

👉 If you prefer to stay in control of collections, invoice financing might work better. But if you just want fast cash and less admin, factoring is the way to go.


Pros and Cons of Invoice Factoring

Pros Cons
✅ Immediate access to working capital ❌ More expensive than bank loans
✅ Based on customer creditworthiness ❌ Customers know factoring is in place
✅ No new debt or repayments ❌ Limited to B2B invoices
✅ Supports cash flow management ❌ Recourse factoring = you take the risk

💡 Pro Tip: If you’re worried about non-paying customers, look for non-recourse factoring. It costs more, but the factor—not you—takes the hit if your client defaults.


Who Uses Invoice Factoring?

Certain industries rely heavily on factoring because slow-paying customers are the norm. Top sectors include:

  • Trucking & logistics: Carriers often wait 30–90 days for brokers or shippers to pay. Factoring ensures they cover fuel and payroll immediately.

  • Staffing agencies: Weekly payroll but client invoices that pay monthly? Factoring bridges that gap.

  • Construction & subcontracting: Payment delays are common due to project milestones. Receivables financing through construction business loans keep crews running.

  • Wholesale & manufacturing: Large-volume orders often come with long terms. Factoring maintains liquidity.

  • Marketing & creative agencies: Agencies billing retainers or project-based fees often use factoring to smooth out revenue cycles.

👉 Fun fact: Staffing and trucking together account for the majority of factoring volume in the U.S.


How to Choose the Right Factoring Company

Not all factoring companies are created equal. Before signing a deal, compare:

  • Fees & transparency: Is it a flat fee or tiered by days outstanding?

  • Advance rates: Some offer 70%, others 95%.

  • Contract length: Month-to-month is flexible; year-long contracts can trap you.

  • Industry expertise: A factor that knows trucking ≠ one that specializes in creative agencies.

  • Non-recourse vs. recourse: Decide how much risk you want to carry.

For a deeper look, read Wolters Kluwer’s guide on factoring and cash flow.


Costs & Fees of Factoring Receivables

Typical fees run 1–5% per month depending on invoice size, industry, and risk. The longer your client takes to pay, the higher the fee.

Two key costs to look for:

  1. Factoring Fee (Discount Rate): Percentage of the invoice charged.

  2. Reserve Hold: Portion of the invoice held back until payment clears.

đź’ˇ Pro Tip: Always check if the factor files a UCC-1 lien. This filing can block you from getting other types of financing until the lien is released.


Real Case: Startup Scales With Invoice Factoring

A small tech startup wanted to grow but didn’t want to take on venture capital or debt. By factoring their invoices, they accessed quick cash, hired aggressively, and scaled operations. Within three years, they sold for $35 million—without giving up equity.

That’s the power of cash flow management through factoring.


Alternatives to Invoice Factoring

Invoice factoring is great—but it’s not the only way to fund your business. Alternatives include:

  • SBA 7a loans: Lower cost, but longer approval timelines. 

  • Business credit cards: Fast but can carry high interest.

  • Lines of credit: Flexible but harder to qualify for.

  • Revenue-based financing: Funding based on your sales.

đź’ˇ Pro Tip: Use factoring for short-term cash flow gaps, but consider long-term financing for expansion projects.





Source link