How to Budget for Home Projects

Learning how to budget for home projects takes the stress out of a room makeover, and it helps you decide what matters most. Let me show you how!

Have you ever faced a home makeover and felt overwhelmed about where to start and what to do? I've already shared how making a mood board helps you visualize your space.

But that's just the first step in the makeover process.

You also need to figure out how much a room makeover will cost and how long it will take. Otherwise, the little expenses sneak up on you, and you'll be well over budget before you know it!

How to Budget for Home Projects and Makeovers

One of the least fun parts of renovating a home is sticking to a budget. But it doesn't have to be painful! It just takes a few deliberate steps and some patience to finish the project without the added financial stress.

1. Set a Flexible Budget

I always find it helpful to start with an overall number in mind. How much am I willing to spend on upgrading this room? Starting with a reasonable but flexible number helps keep my expectations in check.

To stay on track, I create a spreadsheet to track my progress and keep myself on a financial schedule.

Get a digital copy of my home budget spreadsheet to help you set your own home project budget!

2. Write Out a Wish List

Start big and list every wish you can imagine for the room. Be sure to include all labor items and materials.

Not everything will make it onto the final list, but writing it all down will help you set priorities.

3. Research Item Costs

Research the cost of each item on your wish list. Use the budget spreadsheet to track what each item costs, along with a link or note about where to find it.

Don't hesitate to note similar items in different price ranges. If you want a new chandelier, it helps to find a few options across several price points.

4. Plan Any DIY Projects

Do as much of the labor yourself as your skill level allows! The more DIY skills you have or are willing to learn, the lower your costs will be.

When will you find time for these projects? Block off time on your calendar to complete them. A room makeover needs time as well as money!

5. Prioritize Wish List Items

Now that your budget spreadsheet is complete, you should have a realistic total for everything you want in the space.

Next, prioritize the items realistically. If the budget is too tight, cut some items or find cheaper options until the numbers work.

6. Build in Margin

There will always be surprises, or something you overlooked in your plan. Add 20% to the budget for unexpected costs.

7. Save up the Money for Your Budgeted Plan

Set aside the money for your room makeover! If you don't have it yet, work out how much you need to save each month to get started.

It's always wise to wait until all the money is in the bank before you start. But sometimes I work through projects in stages as I save.

7. Order Items

Once the money is in place, order the items on your wish list! I prioritize them by the order they need to be installed, or I order the items with the longest shipping times first.

8. Schedule Installation or DIY projects

Schedule people to install your new home items, or set aside time to do them yourself!

I hope this list of steps for budgeting a room makeover is helpful for you! I know it isn't always easy to sit down and make a plan.

It's hard to wait until you've saved every dollar before starting a project. But I promise that learning how to budget for home projects will be worth it in the long run!

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