Most people forget about the basics while remodeling on a budget. Very little planning before you start can help a lot. Planning still allows you to achieve your remodeling goals.
Creating A Budget
The first step is to extensively research costs by making a list of the prices of the products you plan to install and/or purchase. You can even get the sample prices by searching on the Internet, or by contacting:
showrooms for kitchen and bathroom products
home improvement retailers
appliance stores
In case you are not sure of which products you might ultimately choose, write down the entire range of prices for those items.
Ask different contractors for bids on the project based on your selection of products and finishes. Examine all the bids and ensure that they include enough details on items that can affect the cost in any way. There should be an extensive list of all the functional components -- framing material, drywall, and plumbing and electrical systems, and also details on what type of fixtures and appliances will be included.
Remodeling budgets fall into three broad categories:
mechanical (electrical, plumbing and heating)
labor
materials
Each of these categories typically account for 25 to 35 percent of the total budget. You must also set aside 10 to 20 percent of your total budget to cover unforeseen construction costs, price increases for materials and project changes.
After the bids are in place, review your complete financial picture. Look at your finances in the past year and check whether you had enough cash flow to meet expenses. If you are thinking about taking a loan, calculate whether you can make the payments without cutting into your routine expenses?
Staying Within Your Budget
Once the project starts, keep close track of budget changes and decide if you can increase the total cost of the project or scale back on another area to stay within the budget. Consumers very often exceed their budgets because they ask the contractor to add small projects that are outside the bid estimate. Never use the words, “While you are here, you may as well....”
What are the other ways to stay within your budget?
Don’t allow the temptation to add “small” details to the project overcome you
Do some of the work yourself, if you can
Divide the project into parts and spread out the cost over six months to one year.