How to Create A Budget for Your Next Kitchen Remodel?
Kitchen remodelling projects are notorious for being expensive. There is no denying the fact that unplanned kitchen remodelling efforts can cost you a lot. At the end of the renovation, you will be left with debts, a broken bank account, a lot of unpaid bills, or worst, you may have to stop midway!
Here is some good news for you, creating an updated space for cooking and congregating is possible without breaking your budget. There are several ways to cut down the renovation costs including minimum layout changes, refinishing the tiles instead of replacing them, and a lot more. But the most critical of all these steps is to create a budget.
Here are some tried and tested tips to create a budget for your next kitchen renovation project.
Determine the Scope of It
One must define the scope of the renovation. Are you looking for a complete up haul? Or do you plan on refinishing and updating some items, like cabinets and sinks, leaving others intact? A major uphaul can cost you a lot more than minor updates. Renovation can cost as high as $80,000 or it may only cost you a fresh coat of paint.
You need to ask yourself the following three questions to determine the scope of your project.
- How much money can you spend?
- Will you be staying in the house for long?
- Do you need improved functionality or aesthetic appeals?
Once you know the answers to these questions it is easy to limit the project to your needs and preferences.
Make A General Breakdown of Costs
The most important step of making a budget is to make a breakdown of costs that will work for your cooking space. The costs will include both materials and labor for repair and replacements. In general, labor will consume anywhere from 20-35 percent of your project costs. It depends on the area you are living in and the professional competence of the kitchen remodeling company you are hiring.
Here is how the breakdown should look like.
- Cabinetry: 35 percent
- Labor: 20 percent
- Kitchen appliances: 20 percent
- Windows: 10 percent
- Fixtures: 5 percent
- Fittings: 3 percent
- Other: 7 percent
Set Aside 20% Of Your Budget for Unexpected Expenditures
You are going to deal with surprises during your renovation project, especially if you are living in an old house. For instance, you pull out the sink for replacement and find that the floor is all rotten and needs replacement. It’s smart to keep a wiggle room in your budget at the beginning so that those budget-busting surprises don’t bother you. A simple rule of thumb is to set aside about 20% of your expected costs for unexpected.
Create A List of Everything You Would Need
It goes without saying but creating lists is always a great idea. You can always edit them later as per your convenience and they won’t cost you a penny. Write down everything you would need during the renovation.
Most of the homeowners make this list after they have hired a kitchen remodeling contractor but it is also possible to make one without meeting a professional. Keep it prioritized with your needs at the top and wishes at the end, especially when you have a limited budget.
Ask around for the typical costs of all these materials. You may need to change the scope of your kitchen remodeling project but it is much better than not being able to pay your bills.
Shop Around for Renovation Contractor Quotes
Once you know the materials costs, it is time to shop around for renovation contractor quotes. Whether you are searching online or getting a recommendation from your friends and family, request free estimates from different companies. Get at least three quotes. Don’t fall for the cheapest one without paying due attention to the professional competence of the contractor.
Determine How Will You Pay for The Project
Whether you are working with a kitchen or bathroom remodelling contractor, determine how will you pay for the project. There are many ways to do it but home equity loans are the most popular among homeowners. And that’s because you get tax deductibles on doing it. If you have cash in hand already invested in an account with a high return, it is smart to stick to borrow money at low-interest rates.
Create Spreadsheets of Your Budget and Stick to It!
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