When it comes to your renovation, you’re always looking for ways to save money. But there’s a line between finding the best price and cutting corners that put the work and your home at risk.
If you’re looking for ways to boost your budget and slash your costs without jeopardizing your project, keep scrolling. Here’s a way to strike a balance between your penny-pinching ways and a costly renovation.
Finance with Savings
A big remodel comes with an equally large price tag that might leave you wondering how you can afford it all. You might reach for an online unsecured line of credit to help you reach your goal faster, but you’ll want to think twice.
When it comes to a big job, patience pays off. It may even help you budget better. After all, it’s a lot harder to spend cash on frivolous updates when it’s your own money on the line.
That’s not to say there isn’t a time and place for an online unsecured line of credit, but generally, it performs better as an emergency backup when an unexpected emergency expense tacks on extra costs.
Puff up Your Budget
Tracking your expenses down to the last cent is a financially smart idea, but don’t let your final sum determine how much you end up saving. This may not be enough to see you through the end of your project.
A common rule of thumb is to tag on anywhere between 10 and 25 percent extra to your budget as a cushion. This gives you some leeway in case something goes wrong.
Research Financing in Advance
A surprise may deflate your cushion depending on its severity, so you may have to rely on credit to fix it. In which case, don’t choose the first one you find.
One of the biggest myths you shouldn’t believe about online loans is that all online lines of credit are the same. Sure, every line of credit is a form of revolving loan, but each product differs from financial institution to financial institution. This means the size, rates, and terms will likely vary drastically depending on where you get yours.
Make sure to compare these differences before you run into an unexpected emergency expense. This way, you’ll already know which one fits your needs, so you won’t waste any time before you get the cash you need.
Choose Function over Frill
It doesn’t matter how big or small your project is, finally making a change is exciting. But don’t let your enthusiasm run away with your budget.
In the hustle and bustle, you may approve work that doesn’t need to be done or choose costly plans when there are more affordable alternatives available.
If you’re having trouble saying ‘no’, refocus your budget around functionality. Prioritize things like:
- Utility by maximizing a space’s efficiency rather than its size
- Well-made, low-cost materials over trendier, more expensive items
Your main concern is making your home comfortable as you solve a design, safety, or structural problem. Only move onto more cosmetic upgrades if you have any leftover cash.
Taking on a reno is an exciting and expensive job. You can prevent your next project from damaging your finances by planning for it carefully. Use these tips to help you prioritize your budget before you take on any work.