Adding a new deck, installing new flooring or updating your kitchen may be high on the to-do list for next summer’s home improvement projects, and now is a great time to create a budget and start saving for your venture. Many home improvement projects – even the ones you choose to undertake yourself – can be costly, but you can fund the projects without getting a loan or making purchases on credit. Plan out your finances for the upcoming months so that you can set aside some ample funds for summer home renovations.
Use some of these money-saving tips and ideas to cover the costs of next summer’s home improvement projects with peace of mind:
Create a Budget
Make a list of all the home improvement projects you plan to undertake next summer. Decide whether you will need a contractor and how much you estimate supplies will cost. I’ve found that making a list like this helps me better visualize what needs to get done, and makes it easier to break down all estimated costs as I gather quotes and calculate the cost of supplies and materials.
Review Your Monthly Expenses
How much are you really putting away into a savings account after each paycheck? If you were able to save a few hundred each month until next summer, how much could you allocate for your home improvement projects? Take a close look at your monthly spending habits and see where you can cut down on extra expenses. A few dollars each day could help you save hundreds each month, and this extra money could go directly into a separate savings account set up just for next summer’s home improvement projects.
Cut Back on Entertainment and Leisure Travel
How much of your disposable income goes towards eating out, movies and weekend getaways each month? Calculate all of the “extras” and find ways to cut back so that the funds can go towards your home improvement savings account. Extra expenses like these can really add up and equate to hundreds, even thousands of dollars at the end of the year. Look for alternatives to entertain the family and consider a “staycation” this year to save on travel expenses.
Talk to a Financial Advisor
Take a close look at your current investment portfolio and ask your financial advisor if you can get a higher return on your investments by allocating some of your funds to different accounts, or setting up a different type of account. Most banks offer free financial counseling sessions for their customers, and can help you make some wise decisions with your investments, as well as your current savings and checking accounts.
There are several ways you can start saving money to pay for next summer’s home improvement projects. Use these tips and ideas to budget better and meet your savings goals for next year!