Budgeting for Your Home Improvement Project

A Guide to Budgeting and Financing

If you own a home, it is likely a work in progress. Perhaps you have decided you need more space, or are tired of fixtures and features that are outdated. Maybe you want to update your home to increase its value. Regardless of your reasoning, you will need to figure out how to pay for your home improvement project. Below are some ways to help you budget for your upcoming renovations.

Wise Investments

The overall value of your home increases as you make improvements. Before beginning any project, make sure you will be able to recoup the money spent when you sell your home. You want your renovations to have real value to your home without overdoing it.

Create a Realistic Budget

A budget is necessary to determine the amount of money you can spend realistically. This includes money on credit and in your savings. Before you borrow money, ensure you don’t overextend your finances by first calculating the amount repayment will add to your budget. Also, add your interest payments to the cost of the renovation.

Discuss Your Plans

If you are working with a general contractor or designer on your project, go over your plans with them to get a better idea on how much your project will cost. Always add around 10% contingency to cover any expenses that are unexpected or unforeseen.

Be Flexible

is a good chance you’ll be making adjustments to your original home-improvement design to keep in your budget. Determine up front what you can and can’t live without, as well as what you can hold off on until more money is available. This is one of the best tips to stay in budget.

Use Your Own Skills

If you do some of the work yourself, it’s possible to reduce some of the costs involved with your home improvement project. If you can remove your own cabinetry or flooring, or if you can lay tile are use a paintbrush, it will save money you can use towards other home-improvement expenses. You should also look at sourcing out the materials of your project so you can get a better price. Any skill you can add to the project may save you money, so it is worth looking into.