• Every homeowner updates their residence after a specific period when they believe there is a need to increase space in the home or alter the dwelling’s existing design. Additionally, when you acquire a resale flat, it may not be in excellent shape, and some renovations could be necessary. Renovation is a good concept; however, one must be prudent with budget management to prevent unforeseen expenses that could lead to difficulties. Having a home insurance policy is also advisable as it protects your property by offering coverage for losses caused by fire, theft, natural disasters, etc.

Five Things to Remember While Planning Your Home Renovation Budget

1. SET ASIDE CASH
   Regardless of the budget provided by the interior designer, allocate about 20 percent more. You cannot assume everything will be executed as intended. For instance, you might face a last-minute issue, such as needing to change your tiles because a supplier is unable to deliver. Extended work durations will also result in higher labor costs. Besides preparing for the unexpected, try to save as much cash as possible, rather than solely depending on a loan. The less you need to borrow, the less interest you’ll have to pay back.
   
2. PRIORITISE YOUR NEEDS AND WANTS
   It is important to prioritize your requirements for home renovation. Create a list and categorize them into needs and wants. It may be challenging but rank them properly. For instance, energy-efficient lightbulbs are more practical and economical than a disco ball. If you’re truly on a tight budget, then skip the fancy LED lights, bathtubs, and luxurious sofas. After organizing, rank your needs again. Those that seem less urgent can be postponed initially. For example, renovating your dilapidated bathrooms is indeed more critical than replacing your floor tiles, as long as the latter are still in good condition. Furthermore, your vision and priorities may evolve over time, thus postponing less urgent renovations initially might be a sensible and reasonable plan.
   
3. RESEARCH AND COMPARE PRICES
   Conduct online research to obtain the best quotes for home renovation from your interior designer. Moreover, check the comments and reviews section, if available, to get a rough idea of the services and quality provided by each renovation company. It’s also crucial to understand the advantages and disadvantages of the items you are considering to make well-informed choices. Ultimately, select renovation companies and professionals who align with your vision and fit within your budget. Do not opt for overly cheap labor to save money; it may backfire, leading you to incur additional costs due to potential subpar work and quality. Thus, consulting your family and friends may assist you in making more informed decisions.
   
4. ESTIMATE YOUR COSTS
   After identifying potential renovation companies, experts, and products, compile them into an Excel spreadsheet. It is simpler to organize and keep track of your expenses when using Excel. Additionally, there are numerous extra features like tables and tools that facilitate easier calculations. If you cannot locate the prices online, reach out to these businesses and professionals directly. Aim to reduce your estimated cost significantly below your budget, ideally by 10 to 20 percent, to help avoid overspending or miscalculations.
   
5. DIY WITH RECYCLED AND REFURBISHED ITEMS
   Reutilize items and materials that are in good condition. They can offer a fresh appearance to your home without straining your finances. For instance, you can sand down and repaint wooden fruit or wine crates and mount them on your walls to serve as bookshelves.
   
   Conclusion
   
   Embarking on a home renovation is certainly a challenging endeavor. In addition to budgeting for renovations, you must be strategic in selecting the finest designer materials and managing your time. However, by adhering to the aforementioned steps while organizing your renovation budget, it is unlikely that you will encounter any financial difficulties. Furthermore, when renovating your home, ensuring its structural integrity is essential; therefore, it is wise to obtain a home insurance policy that covers damage incurred due to any unexpected events.
   
   Disclaimer:
   The information provided here is for illustrative purposes only. For more information, please review policy documents and prospectuses prior to finalizing any sales.