Home renovations are exciting during the planning phase and after they’re completed, but never during the tearing down walls and paying for things phase. The unexpected and unplanned costs usually make you want to give up trying to improve your home ever again. So, we have written some smart ways to balance home renovation budgets in this blog.
The good news is that it doesn’t have to be this way. You can navigate these murky financial waters more smoothly with the right tools and strategies. After all, it’s easier to face all the dust and debris when you know you’ll stay within budget, right?
In this article, we’re diving into smart budgeting tips and tricks that can make all the difference, alongside a few trusty tools that’ll become invaluable allies during any home renovation adventure.
Tools to Track Home Renovation Expenses
When you accurately track your home renovation expenses, it’s easier to understand how things are going. For instance, if you find out the project is about to blow up your budget, you can change gears and decide where to cut costs or how to divide the work so it can be done in stages.
The good news is that you don’t need fancy tools to get a clear picture of where every penny is going. You can just use something as simple as Google Sheets! This tool is free to use, accessible in real-time from any location, and works on any smartphone or device.
Also, you can use a wide range of templates, from Google Sheets invoicing to Google Sheets budgeting. Not to mention that any changes you make are synchronized across all devices. You can also share your documents, which makes it easier to discuss decisions like cutting down costs or changing the course of the project.
If you want something more complex, try budget-specific apps like Mint or YNAB (You Need a Budget). These allow you to link bank accounts and set cost limits but are a bit more work than Google Sheets.
Also Read: How to Budget & Track Costs during Home Renovation Projects?
Use Technology to Cut Down Remodeling Costs
Did you know there are other apps and digital tools (besides budget-related ones) that can help you cut down costs and streamline your home renovation?
For instance, you can use online design tools to visualize changes before making costly decisions. Virtual staging apps allow you to experiment with different layouts and materials without spending a dime on samples or consultation fees.
Also, don’t underestimate the power of digital marketplaces when sourcing materials. Platforms dedicated to discounted or recycled construction supplies offer high-quality items at a fraction of retail prices, which helps reduce costs without compromising quality.
Project management software plays an instrumental role, too, facilitating seamless communication between homeowners and contractors while keeping track of timelines so there are no unnecessary delays or expenses along the way.
Lastly, there is a wide range of forums and platforms where you can learn how to DIY many of the steps leading to the renovation and afterward. You can learn tips for renovations on a budget and even connect with people who do this sort of job at a lower price than established construction companies in your area.
Avoid Common Home Renovation Budgeting Mistakes
Every project has its own mistakes (that’s how we learn), but it would be best to avoid the ones you already know might come your way. So, here are a few common mistakes and how to avoid them:
1. Underestimating Costs:
Many homeowners start with a budget that’s too tight, not accounting for unexpected expenses. To avoid this, you can use detailed project management software to forecast costs accurately and track real-time expenses.
2. No Contingency Fund:
A lack of emergency funds leaves no room for error when hidden issues arise. Set aside at least 10% of your budget as a buffer by using budgeting apps like Mint or YNAB (You Need A Budget) to allocate savings automatically.
3. Not Prioritizing Tasks:
Trying to tackle everything at once leads to overspending and unfinished tasks. Use priority matrix tools such as Trello or Asana, where you can organize projects by urgency and importance before starting any work.
Wrap Up
Every renovation project comes with its own challenges (financial and of other nature). However, if you know which tools to use to keep track of your expenses, craft a realistic budget, or get some work done yourself, you will be two steps ahead of everyone else.
Must Read: How to Save Costs on Home Renovations Without Sacrificing Quality?