Money-Saving Tips When Planning a Home Improvement Project
A home improvement or renovation project is a big endeavor that requires time and effort. It also costs a lot of money. Thankfully, there are a lot of things you can do to save on costs without compromising your home’s comfort and safety.
Here are just a few tips on how you can save money for your home renovation project:
Consider Your Financing Options
Many Filipinos often take a few years to save up before embarking on a home renovation project. The problem is that prices change all the time and the amount you saved may not be enough, depending on how big the project is. If you’re only repainting or installing new shelves, then your savings may already cover everything. However, if you’re remodeling multiple rooms or your entire house, then you’re definitely going to need more funds.
A good way to finance your home renovation project is through bank loans. Philippines’ commercial banks offer a variety of consumer loan products, including housing loans. If your application is approved, you can use the loan proceeds for buying, repairing, or improving your home.
Before submitting a housing loan application, prepare all the requirements. Having a stable source of income and a good credit history will improve your chances of getting approved. It’s also better to apply for a loan with a bank where you already have an account.
Set a Realistic Budget and Stick to It
Overspending is a common problem in home improvement projects. That’s why it’s important to set a realistic, well-defined budget that itemizes every expense. These include the following:
● Labor and materials
● Tools and equipment
● Construction permits and other necessary documentation
If you’re also replacing your furniture and appliances, make sure to allocate a separate budget for these purchases. Finally, you need to set an amount for contingencies. No home renovation goes completely without a hitch, so it’s best to be prepared for unexpected expenses. You can peg your contingency fund at around 10% to 20% of your total budget.
Once you’ve finalized everything, put the details in a spreadsheet. Consult this document regularly to ensure that you’re on track. Most importantly, commit to your budget.
Save on Home Decor
When it comes to home decor, you don’t have to splurge on expensive brands. The items may look pretty, but their price tags can quickly add up. Instead, you can check out places like Dapitan Arcade where you can find high-quality and affordable homewares. There are also online marketplaces where you can find beautiful decorations that cost a lot less.
The key is to save on the small items and instead spend a bigger chunk of the budget of quality furniture and appliances. For furniture, a good sofa, dining set, and bed should be among your priorities. For appliances, try to include an inverter refrigerator and air conditioner in your budget.
Aim for Energy Efficiency
Speaking of inverter refrigerators and air conditioners, you’ll be able to save more money in the future if you renovate your home with energy efficiency in mind. The goal here, therefore, is to make the right investments today so that you’ll experience higher returns tomorrow.
Aside from buying energy-efficient appliances and fixtures, you should also consider insulating your house when you renovate or remodel. You should also look at investing in solar panels as well as catch basins or tanks where you can store rainwater.
DIY What You Can
There are various tasks involved in renovating or remodeling a home. To save money on labor fees, try to DIY as many tasks as you can. Choose small projects such as painting your home’s gate and fence, or perhaps making your own headboard. There are plenty of tutorials and how-to videos online to help you along.
As a general rule, anything that involves major electrical and plumbing works should be handled by professionals. Woodwork is also best left to the experts. For the rest, evaluate your personal skills and willingness to do the task before taking on the project.
Reuse What You Can
If your home improvement project involves major renovation, you’ll likely be able to save various components such as window frames, old cabinets, garden tiles, and the like. Check which ones you can reuse or refurbish to lower the costs of your project.
Aside from saving you money, reusing old parts of your home also means you’re reducing waste and are therefore protecting the planet. You’ll also have less work after the renovation is completed because there’s less garbage to dispose of.
Home renovation and improvement projects are definitely exciting, especially if you’ve been planning them for a long time. However, unless you have an unlimited budget, sorting out your finances should be the very first thing on your agenda. This way, you won’t run out of money while in the middle of a project.
Hopefully, these tips can help you build your dream home without breaking the bank.
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