Planning a renovation on a small budget is a challenge. But it’s not a pipedream. You can refresh your space without investing a fortune into your home.
Check out these simple money management tips to help keep your renovations on track.
Make Sacrifices to Boost Your Budget
You may be able to loosen the stranglehold on your money by revisiting your budget. This financial tool helps you set aside more cash for big expenses. Without a budget, you may not realize you’re making bad spending choices that reduce how much you can afford on your house. The most effective way to clue into these bad habits is by monitoring your bank account.
Take care to track small purchases you make on frivolous things. Although they may be small, they can add up over time and syphon cash away from your project.
Some common bad habits include:
1. Takeout coffee
A single cup of coffee from your favorite café costs anywhere between $2 and $5. A cup brewed at home is just $0.20. If this is a habit you indulge in often, you could be saving a lot by making the switch.
In 2019, there’s no need for cable anymore. Streaming services like Netflix, Hulu, and Amazon Prime Video can take the place of old-fashioned cable television for a fraction of the price.
3. Cell phone plans
A plan with unlimited data is more convenient than the alternative, but it’s also more expensive. If you can limit your use of cellular data, you can downgrade to a cheaper monthly plan and pocket the difference.
Think about Contingency Plans
An experienced DIY-er knows home renos often go off course. Something unexpected usually happens in the middle of a project that alters your plans — and budget. You might accidentally step on a rusty nail and need to pay for a booster shot at the local clinic. Or you may realize your house’s electrical is out of code and needs to be rehabbed to the city’s ordinances.
Although you may not be able to predict how it can go wrong, you can figure out how you’ll deal with an emergency before it happens. To make sure your contingency plan is foolproof, make sure you:
1. Create a cushion
Professional contractors suggest you inflate your budget by at least 10 percent. This spare cash can help you cover any issues you didn’t expect. For example, if your budget is $1,000, don’t just save $1,000. Bump it up to $1,100 to cover an emergency.
2. Tap into a line of credit
If you fall short of covering an emergency even with your cushion, a line of credit could help make up the difference. There’s no need to secure a line of credit before you start your project. If you go online, you can find lines of credit that are fast and easy to secure. Some online lines of credit remove the complexities of borrowing you’ve come to expect from traditional banks like long wait times.
You can find lines of credit that work even if you have a subprime credit score, so make sure you research your online options carefully. Some lenders such as CreditFresh look beyond your score when determining your creditworthiness. You can learn about your options at Credit Fresh to see how some lines of credit are available regardless of your score.
But remember, these products are meant for emergency repairs or unexpected expenses. They’re not meant to be used to add in those his and hers sinks you’ve always wanted in your bathroom. Don’t let a small budget deter you from making changes to your home. While less money will certainly limit what you can and can’t take on, it shouldn’t stop you from doing anything.
Tailor your plans to your budget and create a rock-solid contingency plan. These tips will help you refresh your home on a small budget.