After all, there’s a huge distinction between considering and doing. Wish to know what lies within the gap? Your budget. You should plan your budget, save, and home renovation dreams a reality. We’ll show you how!
Setting your renovation budget for your project involves doing your research, setting your priorities and the crunching your numbers; it also requires willpower and resolves to stick to your budget once the project is underway. If you create a thorough outline and budget following these six steps, you can set yourself up for success.
- Define your renovation budget goals and the scope of your project
- Get specific about what you want
- Prepare for unexpected expenses with a rainy day fund
- Prioritize your renovation wish list
- Get quotes from multiple contractors
- Look for small ways to save money
Decide How Much You Want to Spend
Home renovations can value a bundle in case you take it all the way down to the studs and construct it again from scratch. In keeping with HomeAdvisor.com, the typical kitchen renovation prices practically S$22,200, whereas the typical toilet renovation is available in at practically S$10,000.
Those numbers can feel intimidating, especially if you’re just starting to save and hope to get started as soon as possible. So why not start small? You don’t have to get an entire room to make a big splash. You can do a lot on an S$5,000 budget too. Here are just a few ideas to help scale down costs:
- Focus on a single “wow” upgrade like a new countertop or floors.
- Choose ready-made over custom materials.
- Knock out simple jobs yourself.
- Transform outdated finishes with a fresh coat of paint.
Let’s say you set a $5,000 budget for your renovation and want to begin work as soon as you can. Divide your total budget by the number of months you have to save. If you give yourself eight months to save, you’ll need to set aside $625 a month to hit your goal by demo day.
| Total Budget | Months to Save | Monthly Allocation | ||
|---|---|---|---|---|
| S$5,000 | ÷ | 8 | = | S$625 |
If you want to aim big with an S$25,000 renovation project, go for it! It may take you longer than eight months to save up that kind of cash, but the process works the same way. You might plan on a three-year track to make your dream kitchen happen.
Create Room in Your Monthly Budget
You probably don’t have an extra S$625 just lying around doing nothing each month. So now it’s time to dig into your budget and find it!
Start by identifying any line items you don’t use anymore. For example, maybe you just finished building your emergency fund. You could take the money you were saving toward that each month and split it evenly between your kitchen renovation and retirement fund. Now you’re on your way!
Look over your budget once more and find small cuts you can make here and there. You don’t have to quit every indulgence. But what if you carpooled to work a couple of days a week and ate in two extra nights a month? Those small changes could give you the remaining money you need to bring your monthly savings to S$625.
Once you’ve made room for your new goal, be sure to add a Home Renovation Fund to your EveryDollar budget so you can account for your newfound dollars each month.
Stick To Your Renovation Budget
Sticking to a budget can be hard, especially when you are excited about the outcome. You can use the tips below to help fortify your resolve and make sticking to your budget easier:
- Don’t try to overreach from the beginning or you will be set up for failure. You can use a renovation budget calculator or renovation cost estimator to help you be realistic about your plans.
- Always be as specific as possible about what you want, from your vision for the end result to the little steps along the way.
- Resist the urge to deviate from your plan.
- Plan for unexpected expenses to rear their heads, and be prepared with your rainy day fund.
- Focus on what matters most to you or the items that will yield the highest ROI. If you are doing a bathroom renovation on a budget, focus on areas that will have the highest impact, like adding new fixtures.
- Have a backup plan for each item of the renovation. If you go over budget in one area, how can you reduce your costs in another to keep the overall budget balanced?
- Save money (about 20%) by buying materials and appliances yourself, rather than through your contractor.
- Use a home renovation budget planner and check it often to keep yourself accountable and on track.
If you’re fixing your home up to sell, talk to a real estate agent you trust before starting demolition. A good pro can point you toward upgrades buyers appreciate most, so you don’t spend more money than you have to.
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