How to Budget Your Home Improvements

No matter what items are on your home improvement wish list, prioritizing is a key component to proper budgeting. Home improvement goals might include painting, plumbing, roofing, or installing new heating and/or air conditioning systems, roofing, plumbing or decorating.  The list is endless and the process can feel overwhelming, especially if you do not have a clear budget and set of priorities.   

Take Some Time to Plan Before You Begin

Use a basic notebook and create a section for each major goal on your master home improvement list. Make detailed notes for each item. Sections might include such items as master bathroom, plumbing, garage, bedrooms, landscaping or roofing. In each section, take some time to make a complete list of long and short term goals. Once you have clarified your goals, prioritize them. This is a critical step for organizing and budgeting current and future projects.

No matter how much money you have to start with, you must have a clear idea as to how much your home improvement plan will cost.  Collect as many detailed and written estimates from local contractors as you can. Visit home improvement retailers and lumber yards in your area, and request detailed pricing information. You might also search out cost information online. Once you have a clearer understanding of how much each project will cost, revise your priority schedule of home improvements accordingly.

Consider a Consultation with a Home Improvements Expert

There are wonderful home improvement value experts in your community that you can turn to for help. Realtors, general contractors, architects, and home inspectors are often willing to help evaluate the costs and benefits of your home improvement project for a nominal fee, if any at all. You might request their help in deciding the scope of your project, your budget, and, how much your intended improvements will increase the overall value of your home. If your home requires a substantial amount of repair, a home inspector may be very helpful in prioritizing your master home improvement list. 

Be Absolutely Clear as to how You will Finance Your Home Improvement Project

Have you been saving money for home improvements? Have you had a recent windfall? Do you need to apply for a loan? Be clear about exactly where the money for your budget is coming from and make sure the funds are available before you begin your work. Then, as you begin your work, stick to your budget to the best of your ability. Your budget is critical because it will help ensure that you do not overspend on your home improvement project. Comparison shop on materials and labor, and make budget-based decisions as you proceed on your projects. Decide which portions of the job you can cover yourself, or have friends help out, so as to minimize the labor expense. Of course, some tasks, like electricity and plumbing may be best left to experts, but there is still much work that you can do on your own. As you proceed with your home improvement project, pay attention to where and how costs may be greater than expected, and make updates on budgets for future home improvement projects accordingly. Most importantly, make educated, budget-based decisions, and stick with them.