Many of us dream of doing a grand kitchen or a bathroom remodeling project, but most of us do not have the money to fund these very expensive projects. According to statistics, it was found that only a quarter of respondents in the survey who were planning for renovations had saved enough to cover the entire cost of it.
While it’s not impossible to save for renovations, you need to take steps to ensure that you have enough funds. Here are some very practical and doable saving tips that everyone can follow:
1. Set Up a Designation Savings Account
Opening a separate account solely for your home renovation keeps things in order and will help eliminate the temptation of dipping into your savings for other expenses.
2. Estimate the Cost
Prioritize the rooms according to their urgency and importance. If you feel a draft and utility bills are spiking, then maybe replacement windows should come first. Get realistic estimates of the cost by talking to different contractors and source out materials you’d like to use. Once you have a figure, add around 10% to 20% more to it for enough wiggle room. Inevitable surprise expenses can derail your budget.
3. Formulate a Savings Strategy
A workable formula would be to set aside 2% of the assessed value of your home and land annually, and then divide that into a monthly savings amount. If you look at this as just another bill to pay, it will eventually turn into a sizeable amount in the long run.
Alternatively, you can estimate the total cost of the home improvement project that you wish to pursue. Then, divide that total into realistic monthly savings over a set period of time.
4. Store Your Extras
When unexpected funds become available, such as tax refund, bonuses or monetary gifts, keep them in your home improvement account.
5. Trim Your Expenses
Try downgrading your monthly bills or reducing unnecessary purchases from the supermarket, and the money saved can be earmarked for the home renovation budget.
Putting away that hard-earned money for your home renovation is not easy, so you have to learn to save whenever you can considering the high cost of living nowadays. Keep your finances in check, and, most importantly, find qualified home builders who are trustworthy and can deliver the best service. Krier’s Construction is a family-owned construction firm that serves the areas of Appleton, Fond du lac, Neenah and the surrounding communities. Get in touch with us by calling (920) 328-0747 today!