How to Create a Budget for Your Remodeling Project

The budget is often the most difficult part of a remodeling project. Homeowners know what they want and they know their budget, but sticking to the budget gets difficult unless you take the time to properly plan every detail. Here are 9 rules for sticking to your remodeling budget:

1. Decide How Much You Can Spend – Sticking to your budget is easier said than done! You may think that creating a budget and sticking to it sounds easy, but it is not. You will always see new items or designs that you’d like instead of the ones you’ve already budgeted for.
2. Plan Ahead for Payment Options – Will you save the money ahead of time, put small items on a credit card while taking out a personal loan, or get a home equity loan? Home equity loans are very popular because they are tax deductible. You’ll be receiving tax credits on Energy Star compliant appliances anyway, so it makes sense to go that route.
3. Reserve 20% to Cover Unexpected Costs – Whatever you anticipate costs to be, add 20% to cover incidentals. You’ve probably overlooked or underestimated something somewhere along the way.
4. Create a Spreadsheet to See a Breakdown of Costs – You can easily see the costs in your head, but nothing makes them more real than putting them into a spreadsheet. Create a new line item for each individual item that you will need. Include furniture such as cabinets, labor, appliances, windows, fixtures, fittings, and miscellaneous spending.
5. Prioritize Each Step of the Remodel – Make a list of everything that needs to be done. Prioritize the list, naming the most important part first. Functionality should take priority when prioritizing kitchen or bathroom needs. You may discover that you need to find cost saving alternatives or cut pieces out of the remodel idea to stay within budget.
6. Decide Where You’ll Live During the Remodel Process – Many homeowners choose to live out of a hotel or with family during the remodel process. The extent of the remodel itself will likely be the deciding factor. An extensive remodel may take several weeks to finish where a lighter remodel may only take a few days to a week.
7. Plan on Take-out – Eating out is not cheap and must be taken into consideration during the budgeting process. How often will you need to order take-out? Will you need to order take-out at all, or will you need to pitch in on the grocery bill at your in-laws place?
8. Do Some of the Work Yourself – Some homeowners aren’t comfortable with this idea at all. They would rather let the professionals handle the entire process from start to cleanup. That is completely understandable, and absolutely okay.
9. Avoid Impulse Buying – You will be tempted to change things mid-project. Avoid this if possible. Sometimes you may find money saving ideas and opportunities along the way, and that is completely understandable. But don’t allow yourself to be tempted into purchasing more expensive items over what you’ve already budgeted.

Work with Your Contractor

Ask your contractor’s opinion from time to time. He may have some great money-saving ideas to help keep you on budget. Give us a call here at Quality Craft Construction, Inc to discuss your remodeling project in detail. We’d love to hear from you. We’ll schedule a free consultation and quote based on your ideas and our expertise.