budgeting

10 ways to budget your home improvement project

Are you tired of going home every day to the same arrangements of your house? Or your wirings are already faulty that there’s a dire need to have it replaced? Or you simply just want to adapt to the latest feng shui reading about your home? These are all the possible reasons why you want to project a home improvement in your nest.

But you need not spend extravagantly on renovating your home. With the appropriate planning and coordination, improved home designs and features are not far from your grasp and you can have the home improvement your heart desires.

Listed below are some tips to renovate your home without spending too much:

1. Setting a budget and stick to it

Golden rule: stick to your plan and budget. That’s why before implementing a home improvement, critical planning is important. On the planning stage, set priorities and tackle every specific detail you want and need. Make plenty of revisions until you come up with the plan you totally have in mind. Mostly, create a realistic plan that matches your desired budget. Don’t plan for a whole house renovation when you intend to spend an amount enough for only a $20,000 kitchen improvement.

By sticking to the plans, you are saving yourself from more stress and unexpected indebtedness.

2. Estimate how much the costs to break down

You need not be an expert to estimate costs. You just have to read and research a lot so you’ll already have in mind a budget plan before consulting for an expert. Sample cost breakdowns are as follows:

  • Sample kitchen renovations: 35%-cabinets, 20%-labor, 20%-appliances, 10%-windows, 5-fixtures, 10-fittings and others
  • General renovations: Labor: 20%-35% of the total project cost

General costs for renovations are anywhere around these figures:

  • $25,000-$45,000 – Interior an Exterior repaints, landscaping, and small repairs.
  • $46,000-$75,000 – total kitchen renovations or a minor bathroom upgrade
  • More than $76,000 – Roof and sewer line problems, high-end kitchen renovations, medium fix upgrades.

3. Save 20 percent on your budget to cover unexpected expenses

Sometimes, even if the plan is all set and construction is ongoing, we cannot avoid adding some little details that would also cost us money. Other times, there are unwanted expenses we need to cover that wasn’t included in the original plan such as outdated electric wiring that needs to be replaced.

It’s a must to free up some of your budgets so you’ll not be short of money for some possible incidental expenses you might encounter along the renovation process.

4. Create a list of your priorities

As mentioned earlier, set priorities. Since a major home improvement costs a lot, prioritize those areas that mostly needs rehabilitation. Don’t push yourself too hard by doing all the renovations simultaneously. And refrain from choosing expensive items not unless it suits your lifestyle and your budget.

List down all the things needed to be done and label if it is urgent or not so urgent. From there, filter all urgent and check in your budget who’s doable at present.

5. Do a research on how to pay for the project

Various lending companies and banks can offer competitive loan products to finance your home improvement project. All you need to do is study each of the options and get what’s best according to your needs and capacity.

Though home equity loans are the popular option, please take note that personal loans, refinancing or even retirement plans can be a wise choice.

What’s important is you consider loan costs such as interest rates and processing fees.

6. Consider your temporary home while doing the renovations

If you’re into a major home improvement, take into consideration moving out of your home meantime that the construction is on-going. Include in your budget the costs of renting an apartment or hotel, hauling, and storage fees.

Moving out can lessen your stress and worries that some furniture might get lost or broken in the process.

If you choose to stay, prepare for a very dusty, limited and quite unorganized home.

7. Lessen the cost of eating out

This is not exclusive to those kitchen improvement projects only – admit the fact, you might be spending most of your lunch and dinners in restaurants while you have workers at home.

Try to lessen it or else, make sure you have a budget for this.

8.  Put your budget into a spreadsheet

Organize your spending by creating a spreadsheet where you will record all your cash-ins and outs. That way, you can keep track on the budget and you’ll figure out where most of the funds went to.

For sure, you don’t want to end up questioning where did all the money go.

9. Do some easy works to lessen the costs

In the era where everything is expensive, DIY or do it yourself guides are now available online and in books.

Take the opportunity of learning and doing some doable things by yourself like repainting a wall or detaching some old cabinets. Make use of YouTube and other websites.

10. Stop yourself to add little extras and stick to your budget

Yes we all know, home designs on Pinterest and other social sites are quite attractive that you feel the urge to add more to your project and copy some interiors.

But wait! Let’s go back to the first rule. Stick to the budget and plan. Anyway, you can still enjoy what you originally conceptualized, without adding more.

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