A home remodeling project is an exciting opportunity to add beauty and functionality to your living space, but it’s easy to get swept up in the fun of planning and forget that budgets and financial limitations exist. Establishing a solid budget before you start the home remodeling process will help keep you on track and ensure you get everything you want out of the task without bankrupting yourself.
Here are some essential tips to help you set an effective budget for your next remodel.
- Be Realistic – Start by determining how much you can afford to spend. Take your current financial position into account and aim to allocate 10-20% of your home’s current value towards renovations.
- Needs vs. Wants – It’s helpful to make a list of the most important things you want to accomplish with the remodel, focusing on essential upgrades first before including fun add-ons. Things like structural changes or critical repairs should be accounted for before aesthetic elements.
- Research – Take time to conduct some research on your desired renovations. Look up things like labor costs, materials, and other expenses. You can work with a contractor to get an accurate idea of what you need to budget for expenses.
- Have a Contingency Fund – You should always set aside 10-15% of your home remodeling budget for unexpected expenses. If you need to use it, you aren’t derailing the entire project, and if you don’t, you can reallocate it to fun things that didn’t make the final cut of your needs vs. wants assessment.
- Track Expenses – Be sure you keep detailed records of your expenses throughout the project. A reputable remodeling company can help you manage this process and will provide you with regular updates, which makes it easier to stay within budget.
At Intelligent Home Services, we’re ready to work with you and help ensure your next home remodeling project is a success. Reach out today to learn more or get started with a quote!