How To Protect Your Budget When Remodeling

A remodel, whether small or large, should always start with a budget.

A remodel, whether small or large, should always start with a budget.  Determining a set budget at the beginning is the best way to avoid spending more than you want or have as it is very easy to get caught up in the remodel process.  But, determining a budget and staying on budget are two very different things.  Many find that it can be challenging, as surprises arise or changes are made, to stay on budget.  Fortunately, we have 5 tips for protecting your budget when remodeling to help you not only get the remodel that you want but feel good about what you have spent in the end.

1. Be Realistic

• When setting your budget it is critical that you are realistic about what you can achieve on that budget.  If you are not, you will certainly go over your budget during the renovation and by that point there will not be much you can do about it.  There is nothing wrong with a budget renovation and some budget renovations can be far more effective and have a higher ROI than expensive renovations but it is important to be realistic about your expectations.  Do your research and speak to your contractor about the project to determine if you have enough money for the project or if some adjustments to either the project or the budget need to be made.

2. Give Yourself a Cushion

• Not only should you be realistic about your project and your budget, but you should also factor in a cushion when setting your budget.  Renovations often change during the process, delays occur and unexpected expenses arise.  By giving yourself a 10% cushion you can save yourself a lot of stress and panic if more money is needed.  And, if you are lucky enough to not need it then you simply have some leftover spending cash at the end of your renovation.

3. Splurge a Little

• Splurging is not only fun but can add real value to your home when done correctly.  Regardless of the size of your budget, plan to splurge in a few places that will add value and usefulness to your home and factor it into the budget so that there is room to do so.  For example, if you are doing a kitchen renovation it is not necessary to have all custom cabinetry but you may want to opt for the nicer countertop material since it will not only look beautiful but add value.

4. Bargain Hunt When Necessary

• Whether you are doing a $20,000 renovation or a $120,000 renovation, it never hurts to bargain hunt.  Whether you look for furnishing in a consignment store to complete the look of a renovation or you wait until you can find the perfect cabinet hardware on a discount, finding a good deal will help you keep under budget and free up some cash for other things.

5. Work Within the Current Blueprint of Your Home

• Depending on the size of your budget, you may not have enough money to completely gut your home and start over.  Rather than knocking down walls and adding square footage, if you can work within your existing blueprint to make valuable changes and updates you can save yourself a lot of money and help yourself stay under budget.