The following contribution is from another author.
Summer is always the best time for you to carry out remodeling projects in your home. The sun is out, contractors are just a phone call away, and you have the time to supervise the project. But, do you have the money to finance it?
If there is one thing that homeowners all over the world share, is the dream of remodeling certain aspects of their house. You could be envisioning to update to a more modern kitchen or you may have always thought of converting your basement into a home theatre. Whatever your home remodeling project is, it will require money. And depending on the size, it may require a considerable amount of money.
So, as you dream about how you would like to revamp some parts of your home this summer, it is crucial that you find reliable ways on how to finance such a project. Fortunately for you, we have researched and compiled some of the best ways you can use to finance the summer remodeling of your home.
1. First, you will have to find smart ways to save money
Saving money is easier said than done. Every year, we list it as our top 5 resolutions, but we never seem to get past the first three months. Saving money is a skill that needs determination. If you want to start saving for a renovation project, ask yourself how much does this remodeling project mean to you. If it has always been your dream, then you can use that as your motivation to save.
The thing about saving money successfully is that it’s not something you can do without a plan. You need to have a smart approach. Here are some smart ways on how you can save money;
- Open a savings account and automate savings. For most people, it is difficult to avoid spending money when it is easily accessible. Savings account restrict access to your money and you get higher rates. Opening a savings account isn’t enough to finance your remodeling project. You should make as many deposits to that account so that you can save more. Automating savings from your checking accounts is an excellent method of stacking more money into your savings.
- Analyze recurring expenses and see which you can eliminate. Quite often, you may find lots of recurring expenses such as subscriptions you rarely use. Cancel such and find out if you can get cheaper fees for the same services elsewhere.
- Get your impulses in check. If you are into impulse buying then you need to control this habit right away. By avoiding impulse buying, you will have lots of money that you can save and use to finance your renovation projects.
- Avoid eating out. Making food at home is always the most affordable option. Have a chat with your family and explain your plans of renovating the house, and how avoiding eating out can help save more money.
2. Save between 20% and 30% of your income
Even though the above smart methods of saving can channel a significant amount of money into your savings account, it can’t beat saving at least 20% of your income. If you have a reliable income, saving directly from it can help you stack more money on the side to finance your remodeling project.
It takes a lot of willpower for you to save money from your income. So, have a meeting with yourself and plan whether it’s possible to sustain yourself when you save 20% or 30% of your income. Don’t be afraid of limiting some of your expenses for a while. Because this will pay off in the future. Thanks to home renovations, you will be increasing the value of your property.
If you are married, you could also ask for help from your spouse. Explain the need for the renovations and how doing it together can allow you to save more money. Revamping your home can be very expensive and at times, you may need all the help you can get from a spouse.
3. Get a cash loan and remodel right away
If saving looks like a long stretch, you may be better off if you get a cash loan. Loans aren’t as bad as people try to paint them to be. If you have been postponing your remodeling project from summer to summer, a loan can help finance your project right away, and you can be left paying it off.
Home renovations can be very expensive. And at times, it may take longer for you to save enough money for such a project. A loan, however, gives you the money that you need right away. And you can pay the money in installments with some interest.
Please note that this isn’t the best option for all homeowners. If you have a reliable income and a good credit score, you may take a cash loan, remodel your home and pay it off every month whilst enjoying low-interest rates. If you however have an unsteady source of income or you are in debt and have other loans to pay off. It’s best that you save for this project, instead of taking another loan.
4. Live on a budget for a few months
This is a method a lot of homeowners use whenever they are planning an upcoming remodeling project. Understandably, it’s not everyone who prefers taking loans, and this is where living on a budget comes in handy. A few months before summer, you can take the initiative to live on a strict budget.
By cutting down all unnecessary expenses, you can save a lot of money and use it to finance the renovation of your house. When you decide to budget, you will have to live below your means and deny yourselves some of the luxuries you are used to. This shouldn’t worry you as this will be a sacrifice for something better.
To live on a budget requires thorough planning and cutting of expenses, you may want to set some time aside with your family and create a budget for the next few months. It is important to consider the opinions of other family members so that you don’t cut an expenditure that someone considers essential.
Renovating your home has many advantages. Not only do you improve your quality of life by upgrading your living environment, but it also increases the value of your property. The problem with home renovations is that they often have a huge price tag. But for a dream you have always had, the cost shouldn’t discourage you from turning it into reality. The above tips can help you find money to finance your home remodeling project.