Creating a Home Improvement Budget: A Step-by-Step Guide

Creating a budget for a home renovation project can be a daunting task. But with the right plan, you can make sure that your project is completed on time and within your budget. Here is a four-step plan to help you get started: Ballpark the Costs. The first step is to estimate how much your remodeling dreams will cost.

Get bids for each individual project, then rank them according to their priority and start a detailed budget for the project you want to do first.

Calculate How Much You Have to Spend

. Establishing a smart home renovation budget starts with determining the motivation to undertake a home renovation project. Are you doing it to make your home more functional, comfortable and pleasant? If so, you can align your budget with the specific renewals that will support it.

Set Priorities and Trim the Project. Once you have an idea of how much money you have to spend, it's time to set priorities and trim the project to fit your budget. Consider what improvements are most important and focus on those first.

Keep Resale Value in Mind


While repairs don't guarantee a higher sales price, the goal of a home improvement project before the sale is to sell the home without spending more than the net value of the investment. Most homeowners were able to recover 100% or more of their investment in projects such as new roofs and hardwood floors by selling their homes. By following these four steps, you can create a budget for your home renovation project that will help ensure that it is completed on time and within your budget.