Home improvements are never easy to accomplish, but there’s plenty of steps you can take to make your life a little easier. One of the hardest problems to overcome is staying within your means. Below, are four ways you can better manage your family’s budget throughout a home renovation.
Estimate the Costs
The first thing you should do is to estimate the costs you will need to spend on materials. You don’t necessarily need to know the exact cost of the projects in your home; at this point you only need to ballpark them. Round up as you go and then add 10%. Everything always costs more than you expect and there are always surprises that you didn’t count on. This way, you’ll be sure to have enough money set aside with a safe financial cushion for yourself and avoid running out of money.
Determine What You Can Spend
Once you’ve found how much money you’re going to need to complete a project, the next step to do is determine what you actually have available to spend. If you plan on borrowing money, ask your bank how much you can obtain and what kind of loan you need to take out. There are three basic types of loan options: home equity loan , home equity line of credit, and cash-out refinance.
Obtain Free Quotes from Local Contractors
Before you decide which contractor to go with, it will help your budget to get some free local quotes from local contractors in your community. You should ask for recommendations from your friends, coworkers, and family members. In fact, doing so might even get money off your home renovation. However, by asking for free quotes, you can get a better estimate of what kind of money you need to set aside and go with a local contractor that will cost the least. By knowing how much materials will cost you can get a better picture of how much the labor is actually costing you and whether it is worth it for you to try to tackle the job yourself.
Set Aside Money for Hidden Expenses
If you are going to be doing any demolition at all, one of the most easily overlooked items is what are you going to be doing with the trash? Many garbage pickup services won’t haul away “construction debris” so be sure your estimate includes money for dumpster rentals. Although most construction companies will bring their own dumpster, and so it should be added to their quote. So be sure to figure this in if you will be doing the work yourself or verify that the contractor will leave the site clean and all the trash will be removed (and that it is included in the estimated price).
Renovating your home is a stressful, expensive process, especially for new homeowners. It’s important to consider this guide to managing your family’s budget during a home remodel better. Hopefully, this way, you can avoid spending over what you have and end up not being able to afford your remodel.
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