Are you thinking about how to plan a renovation for your home, but still don’t know how to start? Rest assured, because in this article you will find tips to give your home a makeover without harming your finances.
For this to occur, it is necessary to follow some steps, avoiding extra problems. It is necessary to remember that unforeseen events happen and that there must be a lot of patience for decisions to be made in the right way.
Let’s get to know the procedures to make a renovation with minimal hassle and saving money? Read on!
How important is financial planning?
First, you need to have a financial plan so you don’t get into debt that is bigger than the resources you have to pay. Therefore, planning the renovation is very important, as you should know:
- How much money do you have to spend?
- How much will the changes you want to make to your home cost?
- What is the amount available for emergency reserve, in case you need it?
Do not forget any details related to the cost of the work, so you will avoid unpleasant surprises.
How to do a home renovation without breaking the budget?
Once you have a plan in place, it will be more difficult for you to experience delays in the renovation or the cost to exceed the budgeted amount. So, follow the steps below so that the changes come out as you wish.
Have an emergency fund
Once the schedule and values of the work are done, analyze your cash capacity to pay for labor and materials. It is best to have an emergency reserve, as unforeseen events may arise that demand more expenses than anticipated.
In addition, your finances must be aligned with the progress of the reform so that nothing is missing or delayed. Deliver the requested materials to professionals within the requested deadlines, so that they can follow the established schedule for the renovation to be completed on the stipulated date.
Make a cost estimate
Create a renovation cost spreadsheet or use an app so you can enter all the necessary expenses and the amounts for each one. Thus, you will be able to have an overview and realistic of how much you will spend on the work.
Include in the spreadsheet, also, payments to service providers, purchases of construction materials, freight values, debris removal, among others. Also, add 10% to the total expense for extras.
Search the prices
See what materials you will need in the renovation and their appropriate quantities. Choose according to brand and quality. Search at least three construction stores so you can have a parameter of prices.
With the budgets in hand, present it to the professionals involved so that they can help with the calculations, before making the purchase, as each type of material has different units of measurement.
Look for discounts with suppliers
If you have taken out a personal loan to renovate your home, you will have the money to make the payments in cash. This will give you scope to get good discounts in stores when shopping.
Even if you choose to split the materials, be sure to ask for a rebate, as all savings are valid. Also, assess interest rates. Do this even with the professionals who will perform the work.
Before knowing how to plan a home renovation, check all your debts to see if the work will not compromise your monthly budget and follow the steps given in this article. Therefore, you will avoid indebtedness.
Posted by: John Labunski Dallas