If spending extra time in your home last year has caused you to dream up home renovation projects, you’re not alone. When done well, investing in your home can be a great use of your money. Before you move beyond the idea stage, think about the numbers. Here are a few tips to help you figure out and set an appropriate budget for your home renovation projects.
You might have a million things you want to do. Home projects are very much like dominos. You start with one thing and it quickly spirals into a million other projects. This is why it’s important to zero in on precisely what you’d like to get done. Be extremely specific. If it’s helpful for you, split your project into phases. Phase 1 will focus on the surface. Plan phases 2, 3 and beyond that go into more detail. This can help you stay on budget while giving you a sense of accomplishment at the same time.
In this scenario, sourcing means a couple different things. First, it means sourcing materials. If you’re working on a DIY project, make a list of everything you need to complete the job. When finished, head to your local hardware store to price out materials. This should give you a pretty accurate number for a budget; however, it’s always a good idea to add a little extra to cover unexpected costs. In any project, things always pop up. Be prepared for that by adding a line in your budget for the unknown.
The second thing you’ll need to ‘source’ is a contactor. This is also known as getting estimates for your job. If you’re taking on a larger scale project, call and schedule at least three different contractors to come out and do an estimate for you. Request a line item budget from them. It’s a great way to see what every aspect of your project is going to cost.
The best home project you can do is one you won’t go into debt to complete. In an ideal world, you’d be able to cash flow your renovations. Will it take longer to accomplish each project? Possibly. Can you get creative and try your hand at some DIY to save money? Yes. If you’re absolutely not interested in taking on any projects yourself, make sure you save an adequate amount of money before you start each project. As previously mentioned, split your project into phases. Create a budget for each phase. You can split up both the cost and work that way. Dividing a $20,000 kitchen renovation into 4 phases that each cost $5,000 makes the project seem more attainable.
Keep your budget and expectations realistic and you’ll have no problem completing any project you desire. When you make specific goals, save your money and source properly, it’s only a matter of time before you’ve created the home of your dreams.