Home improvement projects are often worth the investment, whether it’s to improve a space for your enjoyment or increase the value of your property. However, it’s important to make sure your renovations are affordable, especially if you’re planning on selling your house in the future. The good news is there are a variety of ways to budget your renovations and avoid busting the bank.
Most renovation experts suggest that homeowners should set aside 10% of their renovation budget for a contingency plan. This will provide peace of mind and financial flexibility if unexpected expenses arise during the project. For example, you may discover that the foundation of your house needs to be rebuilt or electrical work must be brought up to code. Additionally, it’s a good idea to compare prices among contractors before hiring one to ensure the pricing is reasonable and fair.
Another way to stay on budget is by saving up for smaller projects. By opening a dedicated savings account and making regular deposits, you can build up funds over time. Some banks even offer savings tools that can help you track renovation costs and progress to keep on schedule and on budget.
It’s also a good idea to consider the cost of materials and labor when creating your home improvement budget. Higher-end products and materials can add tens of thousands to the overall cost of a project. Ensure that your budget includes the appropriate materials for your project, and don’t skimp on quality when choosing items like appliances, flooring, or other finishes.