How to Budget for Your Next Home Renovation Project

When it comes to home renovations, the cost is one of the most substantial factors to consider before making any concrete decisions. Your budget sets the tone for the rest of the choices you’ll have to make, from the size of the project to the unique details.

As you’re deciding on your next home renovation project — whether you’re renovating your master bathroom, upgrading your landscaping, or adding replacement windows and doors — you must be mindful of your costs to avoid overspending. Budgeting is a crucial part of the process that cannot be overlooked.

We’ve put together a list of helpful financial tips to keep your renovation on track and your budget intact.

Shop for Contractors

If your project requires professional assistance, you don’t have to settle for the first price you’re given. When it comes to using your hard-earned money, you have the freedom to shop around and speak with various contractors. This will help you get a sense of the market and the quality of work versus the prices available.

Once you have their prices, it’s just as important to check their references and work history. If they have a website, read the reviews carefully. The goal is to combine cost-effective work with quality. Though, in some cases, you may have to pay a little more for your desired job if the quality matches what your home requires.

Set Aside Separate Savings

If you’re an experienced budgeter, you know how important it is to set up separate accounts for your savings — home renovations are no exception. If, for example, you’re planning a major kitchen remodel, including new windows, countertops, and appliances, then you certainly don’t want to have that money lumped in with your general savings or your emergency fund.

Creating a separate savings account specifically for renovation purposes will help keep your budget in check and avoid overspending or dipping into excess funds.

Execute During the Appropriate Season

Particular renovations require specific weather conditions to be effective. If you’re working on a major landscaping project or exterior maintenance, you’ll need to ensure those projects are completed when the temperature is warmer. Indoor renovations can likely be done year-round, but you should always confirm before spending any portion of your budget.

DIY As Much As Possible

In some cases, you may be able to start aspects of your renovation on your own or with the help of your household — which can significantly cut down on your outsourced labor costs. If you’re revamping an entire room, consider stripping off wallpaper on your own, or if it’s a kitchen renovation, you may be able to take out the cabinets independently — just make sure you know whether they need to be saved for resale or can be tossed out completely.

The more work you can take on yourself, the less you have to rely on professionals, which can change the course of your budget. Renovations are about working as intelligently as possible.

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