Are you tired of feeling stuck in a situation where you can’t afford to pay for the completion of a renovation project? Or perhaps you’ve run out of funds to finish your kitchen splashback? Don’t worry, today I’m discussing how to effectively manage your budget during a renovation project.
I will provide you with three steps to master budgeting techniques, which will help you achieve your renovation goals and create the space of your dreams.
1. Your cost breakdown
Big renovation projects can be quite stressful, especially when working with large numbers. It can be difficult to keep track of and plan out your budget, which is why breaking it down into specific tasks is crucial. By identifying the major jobs that need to be done and breaking them down into smaller, individual steps, it will be easier to estimate and track costs.
It’s important to constantly track each cost as you are progressing throughout the renovation, to avoid any errors. This will help you stay on top of your budget and make adjustments if necessary. Additionally, breaking down your budget into specific tasks will help you better understand the cost of each aspect of the renovation, which will allow you to prioritize and make more informed financial decisions.
2. Make sure you have a buffer
It’s important to be prepared for the unexpected when it comes to renovation projects, as unexpected costs or delays can occur. One way to mitigate this risk is to have a buffer in your budget. This means setting aside a portion of your budget specifically for unexpected expenses or changes. A good rule of thumb is to have a minimum of 15% of your total budget cost saved away for this purpose. This way, if something does go wrong, you’ll have the financial resources to handle it without causing undue stress or strain on the project. Additionally, being prepared for the unknown and being flexible with changes will also help you navigate any unexpected situations that may arise during the renovation.
3. Triple check
One of the most important steps in managing your renovation budget is to keep a close eye on it at all times. This means monitoring it regularly, giving it the same care and attention as you would with a newborn baby. Instead of checking it on a weekly basis, it’s best to review it daily. This will allow you to quickly identify and address any variations in your budget and to be ready to make changes as needed.
To make budget monitoring easier, you can use budgeting software or apps that will help you to plan your renovation from start to finish, and keep track of expenses.
I have a BUDGET ebook here you might also like. Inside is a downloadable and usable spreadsheet to help keep you on track.