5 Ways to Budget Remodeling Costs

5 Ways to Budget Remodeling Costs 

Making sure that you can afford your remodeling project is an important part of the process. After all, if you run out of money, you won't be able to complete it. Here is a look at five strategies that you can use to help you budget the remodeling costs attached to your next project.

1. Determine a Rough Estimate of the Cost

It's important to take the time to get a rough idea of how much you should expect to pay for the remodeling project. You can speak with a contractor to get a free estimate, but you'll need to be able to identify the changes that you want to make if you want a reliable guestimate. Once you have the estimate, you are ready to see if you can afford to complete your remodeling plans.

2. Identify Your Existing Funds 

Determine whether you intend to use existing funds or take out a loan. If you plan to spend cash, you'll need to calculate how much money you have available to spend. If you want to borrow the funds, you must figure out how much you can afford to spend on a monthly basis to cover the cost of the loan.

3. Create a Priority List 

Figure out which renovations are the most important to you. Create a list of these priorities along with the estimated cost to complete them. Add up the expenses and determine whether or not you can afford to include all of these remodeling tasks in your plans. Make sure that you list the most important aspects at the top of the list so you have a clear idea as to which ones you can cross off if you can't afford to include all of them.

4. Identify Negotiable Changes 

Make a list of the changes that can be implemented at a later date in the event that you run out of money. It's helpful to have this information so that you know which parts of the project should be saved for last. Even if these tasks are included in your top priorities, you can still arrange to have them taken care of at a later date.

5. Set Aside Funds for Unexpected Expenses 

In order to avoid running out of money that you planned to use on a particular part of the project, make sure that you include funds for unexpected emergencies. It never hurts to have a little money set aside just in case a problem arises. Sometimes, even the best contractors can not identify all of the costs until the work is underway. Whether its a load bearing support or wood rot, sometimes these items are not fully identifiable until the initial work has begun. 

Summing Up 

A successful remodeling project is easier to accomplish if you get an estimate on the cost and determine how much money you have available. Figure out the parts of the project that are the most important and identify aspects of the remodeling plan that can be set aside for a later date. Finally, make sure that you set aside some funds for emergencies. You can always plan to use it for last minute ideas if you don't need to apply it to unexpected issues.