5 Steps to Save for Home Improvements This Spring
| Posted in Bank Blogs
Spring is the time for renewal – a time to crank open the windows, make a clean sweep of clutter, and take a fresh look at your life. If you own a home, it’s also a great time to make home improvements.
From a new roof to new windows to kitchen or bathroom remodels, some home improvement projects don’t just improve your home’s appearance, they add to your home’s value, too. And that’s a great thing.
But some home improvements can be costly. The best way to help manage the expense is to plan and save for them.
Here are five ways you can save and plan to help manage the costs:
- Create a home improvement budget: Before you start saving, it’s important to know the costs involved. Start by making a list of the projects you’d like to tackle, establishing a timeline, and researching the costs. For example, if you want to replace your roof, gather estimates from several contractors and compare them. Then go online and do your research to determine if costs are reasonable. Make sure that all costs are included, such as roofing materials, labor, and removal costs.
- Open a dedicated savings account: One of the easiest ways to save for home improvements is to keep that money separate from your everyday spending. Having a separate account will help you avoid the temptation to use the money you save for other purposes. Once you establish a separate account, set up automatic transfers from your checking account into your savings account, so your funds will build over time. Also, if you receive a lump sum of money, such as a bonus or tax refund, consider depositing it in your home improvement fund.
- Trim your discretionary spending: Review your monthly spending and look for ways to cut back. For example, try to reduce the money you spend on takeout or monthly subscription services that can really add up. The money you save can go toward your home improvement fund.
- Plan projects carefully: The best way to reach your goals is to have a plan. When it comes to home improvement projects, planning can save you a lot of money. Look for sales on materials and identify tasks you can do yourself to reduce labor costs. For example, if you want to replace carpet in your home with new flooring, you could try removing the carpet yourself.
- Borrow wisely: If you have a larger home improvement project, such as a kitchen remodel, you may not be able to afford the costs with savings alone. That’s when you should consider supplementing your savings with a home equity or home improvement loan. Before you borrow, research your loan options and compare rates and terms from various lenders. Remember, the less you borrow, the less money you’ll have to repay.
Ready to spring forward with your home improvement plans? By planning and saving now, you can give your home the refresh it needs without busting your budget.