Home improvements are a wonderful thing to do for your house. If and when you decide to sell eventually, all the time, money, and effort that you spent on those improvements will come through for you. You’ll secure a tidy profit in a lump sum that can be used for any number of things.
Of course, that classic rule of business applies here in the home-improvement department, too: you’ve got to spend money to make money, and therein lies the issue for some homeowners.
“I just spent all this money on the property itself,” you say. “How, then, can I afford to spend even more money to fix it up?” you ask.
Don’t worry; that’s where we come in. Let’s give you some hope in this dark tunnel. Here are some ways you can budget the money you do have to afford those home renovations you’ve been wanting.
Figure Out Your Costs
Budgeting doesn’t mean you’re being cheap or even frugal. It literally just means determining how to fit a certain cost into your regular expenses. You know you’ll have to pay probably somewhere in the thousands for your renovations, depending on what they are, but where do you even start?
Well, begin by determining what your costs will probably be. What improvements do you need? A new roof? New siding? A privacy fence? All new paint job throughout the whole interior?
Look online at the average cost of these jobs. Also, as you’d expect, you’ll have to call around to get some estimates. But budgeting can’t happen until you know what the expenses are, so put some time into this.
Consider Financing
To this point, we’ve just been talking about what you yourself will be paying for your home improvements. But consider this: what if you didn’t owe your contractor the money, but rather, a financial institution where you can work with someone on your interest rate?
Yes, we’re talking about home improvement financing. It’s made for people just like you. Oh, you’re getting a new roof? Ready to cough up $10,000?
We aren’t, either.
Instead, why not get the job financed and then work to repay the lender in fixed amounts every month based on your normal expenses and credit score? It’s a much easier situation for a lot of people.
See What Expenses You Can Cut
Finally, while you’re doing all this, see what expenses you have now that aren’t really necessary. Do you buy new clothes all the time? Do you spend a lot on subscriptions you don’t even use?
Cut them out.
Even with predictable financing payments, you’re going to need your extra money, so if your budget demands some reduction of expenses, execute the plan to get your improvements.
Increasing your home’s value will ideally make you some real green later, so do the work now to make that happen. Budgeting isn’t necessarily hard, but it takes discipline. You can do it if you put your mind to it.
