Blog: How to Stick to Your Remodeling Budget

Know What You Want

Hop online, pick up a few home magazines, and start researching remodeling projects. Save articles and photos that inspire you, and decide on a look you love. Pinterest is a great tool for collecting ideas and following brands and designers for inspiration, while websites like HGTV and Houzz provide project details, DIY guides, and some amazing photo galleries for ideas.

By getting a clear idea of what you want to do before you begin crunching numbers, you’ll be able to focus on the exact look you’re going for, without being distracted by extra bells and whistles later on in the game.

Set Your Max Budget

You’ll probably have to discuss costs with your contractor before you finalize your max budget. Explain to your contractor what you’re looking for, and work with him/her to determine a price range for your project.

Once you’ve chosen a design, add up rough numbers for all materials, tools, and labor (including the cost of a contractor if you plan to outsource the work) required to complete your project. Round up prices and pad numbers to account for taxes and delivery fees, then examine your total to decide if your cost is manageable or unreasonable.

Depending on your savings and what you’re comfortable spending, you can decide how much you want to tweak your numbers at this time. If your estimate greatly exceeds what you can afford, the following tips will help you to scale back to a number that’s much more acceptable.

Cut Back

This stage requires some willpower, but can be extremely valuable when managing your remodeling budget. While you might think that trimming back the scope of a project won’t achieve satisfying results, cutting unnecessary flourishes here and there can save you tons of money—and most of the changes may be things you won’t even miss!

Begin by prioritizing your wish list. If you’re building a front porch and can’t imagine sitting outside during the summer without a ceiling fan, add that to the top of your list. The key here is to eliminate the extras. Expensive lighting, hardware, and other embellishments can be switched out for more affordable options, allowing you to focus your spending on what really matters to you.

Upscale older items instead of replacing them. Give that vanity that’s been in storage a fresh coat of paint, instead of going out and buying a new one. Make a list of items you want to be higher quality and repurpose them.

Another money-saving option? Reduce the overall scale of your project. Bigger isn’t always better, especially when a larger remodel means more money and more maintenance. Focus on a small- to medium-sized project that serves a purpose, rather than a huge undertaking that might look great on Pinterest, but in reality is excessive in reality.

Get a Home Inspection & Build a Contingency Budget

The cost of a home inspection could far outweigh issues you run into while remodeling. Consider hiring an expert to examine your house for internal damage, rot, infestations, and structural issues that could put you behind schedule or completely hinder you from completing your project. Having a good idea ahead of time will help prevent unforeseen costs from popping up during the remodel.

Unfortunately, remodeling projects often bring unwanted surprises, no matter how prepared you are. If you’ve ever watched a home remodeling show, you’ve likely seen your fair share of “we didn’t know that was there” moments.

To eliminate or minimize problems before they find you, create a contingency budget (suggested amounts vary, but many experts recommend 20 percent of your remodel budget) to set aside for emergencies. Do not dip into this fund unless you’re faced with a big issue that would otherwise prevent you from moving forward in your remodel. If you do not run into issues during the project, you can put this money back into your savings to be used elsewhere.

Consider Completing Manageable Tasks On Your Own

If the scale of your project is something you can see yourself doing without the help of a contractor, go for it! Contractors should absolutely be consulted in the event that you do not have the time or skillset needed for your particular remodel, but many home projects can be completed with a little research and the help of a few friends.

If you do opt to move forward with a contractor, make sure you choose a reputable professional who gets the job right the first time, and save some money by ordering materials yourself. You may find that even if you’re not up for a solo DIY challenge, there are plenty of opportunities to save costs by cutting out the middle-man and going directly to the source.

Consider Other Costs (Not Just Materials)

While you may have a detailed list ready to go, check your costs one more time and see if there’s anything you’re forgetting. Does your budget include meals out when you don’t have time or a place to cook? How about hotel costs if your remodel makes living in the house a little difficult during construction?

Make a plan of day-to-day incidentals that fall outside of your immediate project list. Consider prepping sandwiches or frozen meals ahead of time to have ready for you and your family. Pizza delivery’s fine, too—just make sure you account for the costs in your budget. If staying in your home during the remodel proves to be difficult, ask local family or friends if you (or even just your kids) can stay with them for a night or two.

By being aware of the additional costs your temporary displacement may generate, you can cut back on surprise credit card charges you don’t typically account for each month.

Avoid Changes & Upgrades

Paying for materials you didn’t budget for is worse than adding new projects along the way. Framing your windows and notice an overhang that needs a little TLC? Put it on the list for a future project. Adding extra items to your to-do list not only runs up your bill, it also causes you to lose focus on the project at hand.

At the end of the day, a huge bank account isn’t necessary for achieving your dream remodel-it’s discipline and a solid plan. Stick to your main goals, avoid being upsold on supplies and features you don’t need, and be prepared for outside costs to sneak their way in.

By being aware of what you want to accomplish and the challenges you could face along the way, you’ll be better prepared to transform your home while refusing extra costs for so-called “conveniences” you’ll never even miss.