The thought of a renovation can be overwhelming, but actually sitting down and crunching the numbers is tough. I have put together five easy steps to help you create a budget and prepare for unknown costs. Keep reading for my tips and advice.
Before you even begin making a budget it's important to understand how much different services and products cost. This way you can make a realistic budget and not have to guess and be disappointed later on. Your most important quotes that you will want to get are from a general contractor (if you choose to use one), plumber, HVAC installer, electrician, and any other larger expenses.
This step in the process is especially important if you are planning on moving walls or doing any sort of major changes or new construction.
make a list of your priorities
The next step is to make a list of your needs and wants for your space, and prioritize this list from most important to least important. It's also important to be realistic when creating this list as well and to make sure your expectations are not too high. You will probably already have some numbers in mind when creating this list, so make sure that this list reflects your ballpark budget.
create a realistic budget
Once you have got all of your quotes and list of priorities it's time to crunch some numbers and see what realistically fits into your budget. This may take some time, but it's important to think realistically and have your priorities line up with your budget.
When you go to make a budget make sure you include all of your quotes that apply to this project, your top three priorities, and also how much time this project will take as well. Time does equal money and the longer your project goes on for, the more money it will end up costing you.
Budgeting time is also another important aspect when renovating. Making sure you have enough time to complete a renovation and having a realistic timeframe will also save some stress. Timelines will always get changed once you begin, but be generous because it will most often take longer than you think if it's a larger project.
do your priorities fit in with your budget?
This is probably the hard part when creating a budget. It's time to find out which priorities made the cut. You will often be surprised by how these will change and what you can go without. Don't be afraid to take time to reconfigure this part and make sure that these priorities fit in with your lifestyle and budget!
create an emergency fund
Last, but certainly not least is creating an emergency fund! This is a crucial step and will help you to not go over your budget. This fund should be at least 10% of your overall budget and is reserved for unforeseen problems that may arise while renovating. If this fund does not get used you can put it towards upgrades or keep it for another renovation.
I strongly reccomend doing this step as it can get you out of stressful situations. Not enough homeowners do this step and I wish more people knew how important this is! This is your insurance against any issues during your project and can save you a lot of stress.
Thanks for taking the time to read this blog post. If you’re interested in working with me you can get started right here. I would be happy to work with you on creating the space of your dreams! Be sure to follow Schinkel House of Design on Instagram, Pinterest, and Facebook for more inspiring and insightful content.