5 Tips to Avoid Running Out of Money While Remodeling
Have you ever started a remodeling project and then ran out of money before it was finished? Luckily I have never been in that situation, because I have always taken precautions before hand. Proper planning, budgeting and sticking to the plan is a key to any project, but when remodeling a house you might run into surprises, and it's not always as easy as it sounds. Here are 5 tips to avoid running out of money while remodeling and what to do if it happens to you.
1. BUDGET YOUR REMODELING WELL
Create a good budget. You'd be surprised how many people don't and think "we pay as we go". Calculate the costs for the materials, labor, possible tool rentals or storage rentals, and add at least 10% for the unseen things that you forgot. Are you remodeling your kitchen - add in an eating out cost. Are you remodeling a bathroom? Only one bathroom in the house and you might need a few hotel nights. Think of all of the related costs that remodeling will bring.
2. PLAN YOUR REMODEL AND STICK TO IT
Stick to your plan. Don't think that since you are remodeling your kitchen the entire downstairs should now be redone to match the shiny new kitchen and try to take on the entire house at once. At least not until you have finished and paid for the original remodeling project. This is the biggest mistake peoplemake - and I did it once too... We had a three story house and we remodeled all three floors and I thought I could tackle the 4th, the basement too. We gutted the entire basement, including the bathroom, and never finished it. When we were selling the house it was more difficult because of the missing bathroom and a bare basement.
3. HIRE THE RIGHT CONTRACTOR
Hiring the right contractor is key to sticking to the budget. Ask for recommendations from people you know, and ask for bids from several different contractors before committing to one . The biggest mistake people make is thinking they can do it all themselves and don't budget any money for labor. Now, don't get me wrong; there are plenty of people who CAN do it all, but make sure that you know all the details of your remodel project, and if you are able to do it on your own. For example, you might have to have an electrician to do electrical work or have someone to inspect your electrical work, depending on where you live.
4. SCHEDULE THE REMODEL WELL
Buy all of the supplies before you do anything. You might get damaged goods, your local store might have to special order something you need -- and you end up either going with a more expensive option available right now or waiting for a counter top for a month. If you realize you have run out of money before you have everything you can always return things if they are untouched, and go for cheaper alternatives or wait and save money for labor and then start the remodel.
5. LAST MINUTE FIXES WHEN RUNNING OUT OF MONEY
When it's done, it's done and when the money is gone, it's gone. If the situation arises that your remodeling project isn't finished and you have run out of money you have several options. You can take a home remodeling loan or finish it by paying with a credit card, but we both know Lifetime Mom Alyssa would not recommend this. Think alternatives; can you return any of the already bought items and possibly get cheaper options? Or sometimes it's best to use whatever you have just to finish the job for now, and then get a nicer sink or light fixtures later on. For example; you could be able to finish your kitchen remodel if you return the nice new appliances and stick to the old ones for a while longer - at least you will be able to finish the cabinets and everything else and get back into cooking in your own kitchen. Swapping new appliances or light fixtures later on is easier than re-tiling or replacing a counter top.