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- Building a Remodel Budget in 10 Easy Steps
Building a Remodel Budget in 10 Easy Steps
- By Angela Glancy
- Published 01/22/2010
- Home Remodeling
Angela Glancy
After acting as a contributing editor for http://www.americanartisanart.com/, Angela Glancy, an award winning designer in her own right offers tips on displaying contemporary metal art and metal wall sculptures.
View all articles by Angela Glancy
Before you begin painting a room and moving furniture around, you need a plan, or design. Part of that design is considering how much you can spend on your remodel, and how you want to spend it. Here are 10 steps to help you manage your decorating budget.
1 – Cash Flow
Start by looking at your cash flow. Before you can have extra money to spend on your remodel, you have to make sure that your bills are paid, like mortgage/rent, utilities, food and gas. If you do not have a monthly budget now, this will help you establish one. Compare your monthly bill payments with your income coming in, and whatever is left over is your discretionary income. Discretionary income, savings and credit lines are generally the three main components for financing your remodel.
2 – Credit or No Credit
If you have saved for your remodel, then the only thing that you need to worry about is sticking to your budget. If you are financing your remodel, then you need to look at your discretionary income and your credit availability. If you are going to finance the project, make sure that you can afford the monthly payments, and realize that you will be paying interest on your loan whether it is a building loan or simply charged on a credit card.
3 – Plan the Project
Decide where the project begins and ends. Like a thread on a sweater, once you start pulling it, there is no stopping. As soon as you paint that first wall, everything else is going to look like it needs an update, so know where the finish line is.
4
– Professionals Can Help
If you are considering a large project and you are not sure what some of the costs will be, it is well worth your while to consult a professional to get an accurate estimate.
5 – Do Your Homework
If you are not having a professional do your estimate for you, then make sure to get multiple bids for labor, supplies and equipment. However, as you shop for the best price, do not sacrifice quality.
6 – Measure Twice
Pay attention to detail. Take measurements carefully and accurately. A mistake here can be expensive later in the project.
7 – Pressure Valves
Build in a few areas where you can cut costs if you need to. Despite good planning, you may run into an unexpected problem or expense, so build a pressure valve into your financial plan.
8 – Do It Yourself
If you are at all inclined, do some of the work yourself to help keep costs down. Be realistic when accessing your talents, and if there are parts of the project that you can do and would enjoy doing, then jump right in.
9 – Add Padding
When you are building your budget, you always want to overestimate by at least 10%. With this 10% cushion and your ability to cut costs in a few key areas if necessary, you will be able to complete your project within your budget.
10 – Get Real
As you assemble your budget if it looks like you will not be able to afford to do your remodel, either adjust the scope of your remodel, or delay the project. Be realistic. That is why you built your budget in the first place!
1 – Cash Flow
Start by looking at your cash flow. Before you can have extra money to spend on your remodel, you have to make sure that your bills are paid, like mortgage/rent, utilities, food and gas. If you do not have a monthly budget now, this will help you establish one. Compare your monthly bill payments with your income coming in, and whatever is left over is your discretionary income. Discretionary income, savings and credit lines are generally the three main components for financing your remodel.
2 – Credit or No Credit
If you have saved for your remodel, then the only thing that you need to worry about is sticking to your budget. If you are financing your remodel, then you need to look at your discretionary income and your credit availability. If you are going to finance the project, make sure that you can afford the monthly payments, and realize that you will be paying interest on your loan whether it is a building loan or simply charged on a credit card.
3 – Plan the Project
Decide where the project begins and ends. Like a thread on a sweater, once you start pulling it, there is no stopping. As soon as you paint that first wall, everything else is going to look like it needs an update, so know where the finish line is.
4
If you are considering a large project and you are not sure what some of the costs will be, it is well worth your while to consult a professional to get an accurate estimate.
5 – Do Your Homework
If you are not having a professional do your estimate for you, then make sure to get multiple bids for labor, supplies and equipment. However, as you shop for the best price, do not sacrifice quality.
6 – Measure Twice
Pay attention to detail. Take measurements carefully and accurately. A mistake here can be expensive later in the project.
7 – Pressure Valves
Build in a few areas where you can cut costs if you need to. Despite good planning, you may run into an unexpected problem or expense, so build a pressure valve into your financial plan.
8 – Do It Yourself
If you are at all inclined, do some of the work yourself to help keep costs down. Be realistic when accessing your talents, and if there are parts of the project that you can do and would enjoy doing, then jump right in.
9 – Add Padding
When you are building your budget, you always want to overestimate by at least 10%. With this 10% cushion and your ability to cut costs in a few key areas if necessary, you will be able to complete your project within your budget.
10 – Get Real
As you assemble your budget if it looks like you will not be able to afford to do your remodel, either adjust the scope of your remodel, or delay the project. Be realistic. That is why you built your budget in the first place!