The Best Financial Planning Tips For Your Next Renovation
It doesn’t matter if you’re planning your first renovation ever or it’s the last of a long list of projects you’ve completed — the lead up before you start a project is a special time when inspiration and creativity flow effortlessly. Money, on the other hand, doesn’t spring from your bank account quite as easily, and it can leave you feeling stressed about how you can make your design dreams into a reality. If you’re worried how you can achieve your goals without busting your budget, check in with this guide for practical money-saving tips.
Don’t underestimate a budget
If you think a budget is just for sweeping renovations that remodel the whole house from attic to basement, you would be wrong. No project is too small for a budget. Whether it’s simply buying new furniture for your living room or retiling your master bathroom shower, you need to know what you can afford to spend on these tasks. A budget will tell you, and if you follow it, it can keep you from overspending.
Make your reno the priority
A budget can also help you unearth extra savings to put towards your goal, but these savings come at a price. Ultimately, you have to work within the parameters set by what you earn. You can’t magically inflate your income to spend more. The only way you can save more is by cutting spending in other areas of your budget.
When you give your renovation plans the priority, you can’t spend extra cash on vacations, takeout, or new additions to your wardrobe. You have to eliminate unnecessary spending on “fun” things, so you can put more of your finite cash towards your plans. If you aren’t sure how your budget can help you identify the ways you’re spending your cash unnecessarily, use a guide like this one to find savings in your everyday life.
Save more than you think you need
When it comes to household renovations, there’s no such thing as too much savings. A common piece of advice for homeowners is to save as much as 20 percent extra on top of what they expect their renovations to cost. This is considered an emergency cushion that can cover anything from extended deadlines to unexpected damage that requires immediate repairs.
The nature of unexpected emergencies makes them hard to anticipate, but a general emergency fund should be able to cover most potential issues. Making sure your emergency fund is big enough will take work, but you can make it easier for yourself when you check out this blog post. It offers up simple ways you can save on your monthly bills. Commit to these savings for long enough, and you’ll have collected a lot more extra cash for your fund.
If you ever find yourself short during an urgent repair, an online lender can help bridge the gap. Their online platform makes companies like MoneyKey able to facilitate fast-acting short term loans that arrive in one business day. Compare this to the typical personal loan issued by a bank, and you’ll find it’s much faster. If you’re approved, you won’t have to wait on potentially house-saving repairs while a traditional bank reviews your application.
When it comes down to it, an organized approach is your greatest weapon against financial stress. You can banish your feelings of dread regarding your plans by budgeting properly in advance. So balance your creative design plans with pragmatic ones about money, and take the time to prepare your finances in the lead up to your next project.