Keep it all
The best thing to do when budgeting is to
keep the cost of your remodeling project in perspective. Look at your monthly
debt and your monthly assets again with the new bills in place. Then consider
how much you can reasonably afford to take on for remodeling. You may want to
wait a few months until you really have a handle on your new finances.
How much should you spend?
course, you want everything to be perfect now. Who doesn't? But how much "should"
you spend? The answer varies by circumstance. It also depends on how much you
want to invest into the new home. If you are planning on staying, spend. If you
are planning on moving within five years, reconsider the budget. A trimmed budget
targeted to high value resale changes would be the best option.
Don't spend every dime you have.
you determine how much you can afford to spend on a remodeling job, decrease that
amount by 10-20%. This money should be put in a reserve account to cover any change
orders or incidental charges accrued along the way, which will prevent a frantic
scramble for additional funds at the end of a project.
Stick to your budget!
you have the lower budget figure. Stick to it. Keep change orders to a minimum
and recognize that phrases like, ". . . while you are _____, could you just ______,"
can quickly destroy a budget. Any work not specified in the original contract
will have a new and additional cost attached to it. Contractors find that "whileyas"
as they are called in the industry, can represent up to 10% of their annual volume.
Stick to your plan like glue. And be patient. You may need to stagger the work
over time and deal with the waiting period to get your perfect home.
your choice in products will determine the cost of the project. There are many
different levels of product quality and many different price ranges. Talk to your
contractor about various options to meet your overall goal.
It will vary.
will vary depending on your location, the size of the room and what features or
options you choose. But your best bet to establishing and meeting a realistic
budget is to hire a professional remodeling contractor.
Final Financial Word
It all comes back to money.
want to remodel your home and not spend your children's college fund to do it.
You want to do the entire project on a shoestring budget and end up with a room
that could be found on the pages of a magazine.
Just kidding. But remodeling can be expensive and it can take time. Be sure you
know what you are getting into before jumping in right away. That is a good way
to incur debt you cannot pay.
A Little Freaked Out?
you thinking about doing it yourself now? In the next section, we will look at
the reality of Do-It-Yourself remodeling.
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