1. Plan your exits. Building codes require safe exit routes in case of an emergency, particularly in bedroom areas. “A common requirement is that an opening window must be big enough to climb out of, and close enough to the ground to reach,” says Higeura. “This sometimes means cutting down the foundation and building a window well.” The windows in this finished basement not only let in loads of light, but they also provide an easy-to-access escape route in case of emergency. Check with your local building department about your home's requirements.2. Stop the water. If you have any moisture or water coming in through the foundation or slab, Higuera recommends not finishing that part of the basement until the source is found and fixed. “Covering up a problem will just mean soggy, moldy insulation and Sheetrock in the future, along with ruined flooring,” she says. "Don’t risk it.”