How To Create And Stick To Your Home Improvement Budget

by Heather Jones
Home Improvements

Have you outgrown the aesthetics and layout of your home? Are you a property owner interested in making updates to increase your property’s value for resale? Maybe you recently moved in and want to make the space feel more inviting. The right home improvements can take your residence from drab to fab. The best part is transforming your house doesn’t have to leave you broke or in debt. 

Affordable Home Improvements

Many home improvement projects can be completed without a contractor, saving you thousands of dollars. Whether it’s painting walls, refinishing cabinets, installing a kitchen backsplash, flooring, or other minor updates, all you need are a few basic supplies, tools, and materials to get started. Although these tasks are easy and affordable, it’s easy to get carried away and overspend. How do you prevent that from happening? By creating and sticking to a budget. Here are some suggestions. 

List And Prices Your Expenses

A physical (or digital) budget with accurate estimates for each line item ensures you stick to the plan. First, you’ll want to create a list of things you’ll need to complete your home improvement projects. For example, if you’re painting a room, you’ll need to measure the space to determine how many gallons of paint you need. Other items on the list might include brushes, pans, rollers, a ladder, tape, and a tarp. If you plan on adding special features like textured patterns, lettering, or faux bricks, you’ll need to include these products. 

Next, do some comparison shopping to determine the best service provider to purchase your tools, materials, and supplies. If you’re buying online, you’ll want to include the shipping costs in your budget. Add each price next to the line items and calculate the total. Now you know how much you need to complete the project. 

Review Your Finances

How much can you afford to dedicate to your home improvement projects? Review your finances to see how much you have left after you’ve paid your bills and necessary expenses. If you have some cash in savings, you can include this into your budget too. Compare your available funds to the total cost from the abovementioned list. 

If you don’t have enough, you may need to consider options like personal loans, credit cards, or holding off and saving until you reach your goal. You could also break the project into smaller parts and complete each as you get the money. If you’re going to finance or use a credit card, ensure you can afford the monthly payments to avoid digging a hole.

Divvy Up The Money Or Set it Aside

You’ve created a home improvement budget and compared it to your household budget to ensure it’s affordable. Now comes the more challenging part – sticking to your budget. The best way to avoid going off course is to withdraw the funds and divide the cash into envelopes. Label the envelopes to match the products you need to purchase. Once the envelope is empty, you have no more cash to spend in that category. If you have money left in one envelope, you can use this to make up the difference. 

If the envelope system is a bit too old-fashioned for your tastes, you can always consider a feature offered by ONE called Pockets. It’s a sub-account for banking customers that are connected to their checking. You can customize the Pockets just as you would with the envelopes and transfer funds into each. As you make purchases, remember to spend from the appropriate Pocket to stay on budget. 

There are so many reasons to consider home improvements. Whether your goal is to improve your property’s aesthetics, comfortability, functionality, safety, or value, you can do it without spending a ton of money. Use the tips mentioned above to create a home improvement budget that’s easy to stick to and begin transforming your living space.  

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