American households spend $8,305 on home improvements on average.
Have you been dreaming of improving your home? Remodeling your home into the beautiful sanctuary you always wanted is a truly rewarding experience. However, it can be easy to let the costs get out of control on a remodeling project.
In order to make sure your home renovation budget stays in check, you must plan ahead. Thankfully, there are many ways you can cut costs while still creating the dream home you’ve always wanted.
This simple guide gives tips on how to create a home renovation budget that you will stick to.
Know Your Priorities
To stick to a home makeover budget, the key to doing this is understanding your priorities and knowing where to splurge and where to save. For example, if you want a luxurious master bathroom, you may be willing to sacrifice other aspects of the renovation like the kitchen or guest bathroom.
To get started, sit down and make a list of all the things you want to change or update in your home. Then, start assigning costs to each item on the list.
Incorporate Flexibility
It’s important to be realistic and honest with yourself about what you can afford. However, it’s also essential to incorporate a bit of flexibility into your budget in case unexpected costs come up.
For example, see if you can do any of the work yourself or if you have any friends or family who can help you out. Additionally, look for ways to cut costs on materials or labor.
Use the 50/20/30 Rule
One helpful rule of thumb is the 50/20/30 rule. Fifty percent of your budget should go toward necessary costs like labor and materials, 20 percent can be set aside for contingency funds, and 30 percent should be allocated for design and luxury items. This can help ensure that your budget stays on track and you don’t overspend on unnecessary things, especially when you are using home improvement loans for the project.
Have a Contingency Plan
One way to create a budget you will be happy with is to have a contingency plan. This means setting aside money for unexpected costs that may arise during the renovation process. By doing this, you can avoid being caught off guard by a large expense and having to borrow money to cover the cost.
Another tip when budgeting for home renovations is to be realistic about your costs. It is important to remember that renovating your home will not be cheap.
There will be a lot of labor and material costs involved. If you try to lowball your budget, you will likely end up going over budget and making compromises that you are not happy with.
Are You Ready to Create Your Home Renovation Budget?
When doing home renovations on a budget, you can easily overspend when you don’t have concrete plans of what you want to achieve. Also, you must research the costs of things involved in the project.
Creating a home renovation budget may seem daunting, but it doesn’t have to be. By following these simple steps and tips, you can create a budget you’ll be happy with and one that you’ll stick to.
After knowing how to create a home renovation budget, you should now start. Use our home budget calculator to start planning your project. You’ll be on your way to a beautiful new home in no time.
And while you’re at it, be sure to browse through some of our other posts for more great tips and advice!
