Ways to Save Money for Home Improvements

Sometimes you just need a change. After all, your home is your retreat from the rest of the world. These days, there's a good chance that your budget won't allow you to make all the home improvements your heart desires, at least not right away. However, your dreams may be realized sooner than you expect. You may be surprised at some of the small modifications you can make in your daily life to save money and achieve your home improvement goals.

Discover Different Ways To Save Money

Most people can find a way to slash at least one household expense. Contact the providers of your cable television, internet service and telephone to see if you can get on a lower-priced plan or a deal. Put the savings difference into your bank account. Cleaning out your home and selling stuff you no longer need is also an excellent way to grow the fund while clearing some clutter. Try buying generic brands at the grocery store and clip coupons for more savings. If time allows, you could also take a seasonal job for a couple of months. Seasonal truck driving jobs or seasonal retail jobs are just a couple of great opportunities for extra income.

Open a Dedicated Savings Account

By setting aside a savings or checking account that's designated only for home improvements, you can quickly and easily track your progress. Have a percentage of your paycheck automatically deposited into this account. Find an account that earns interest, cashback or savings on purchases (you might even find one that offers all three). This allows you to actually make money for basically nothing.

Get Realistic Cost Estimates

One of the most important things you can do is getting an accurate cost estimate for each home improvement project. First, decide which materials you want to use and get an estimate for them. You can consult other homeowners in the area to see what they've paid for similar projects and ask for referrals to reputable contractors. Also, be sure to pad your bank account with a little more than the estimated amount; unfortunately, negative surprises are very common in the home renovation process.

Find a Reasonably-Priced Contractors

You should be able to find vendors who can complete the work that you can't do yourself. Some people do this work as a side job, and they typically charge less than a full-time contractor. Ask friends and neighbors for recommendations. You can also ask for suggestions at a real estate office or a home improvement store. Get a full estimate list of the cost and bids from at least three different contractors.

Develop a Savings Strategy

There are several ways of developing a savings strategy. It should be based on your income, monthly expenses, home improvement goals and desired time frame for completion.

Save a certain percentage of your home's value each year to automatically move into your dedicated bank account. You can figure the total amount from the percentage and divide it by 12. This will give you monthly installments to pay it into your bank account.

Similarly, you can estimate the total cost plus a little extra padding. Divide this cost estimate by 12 for monthly installments, or more months if you plan stretching it out over a longer time.

You can also make a commitment to add extra money (e.g., monetary gifts, tax refunds) you obtain to the bank account.

If you pay with cash, add the change that you get from purchases to your account. Some debit cards will round purchases up to the nearest dollar and deposit the extra money in your savings.

Learn Skills

Learning a few DIY skills never hurts and can actually save you a lot of money if you feel like doing some of the home improvement work yourself instead of hiring contractors. Some easy DIY projects (e.g., painting or ripping out carpet) just take time and require no real skill.

Do Your Own Prep Work

You can do some of the prep work yourself to reduce contractor fees. Look online for how-to videos on a specific job. It'll probably be time-consuming and take some elbow grease, but it should be much less expensive to do it yourself.

Consider Pre-Owned

Often, you can save a lot of money by opting for pre-owned instead of new. You may even discover a fabulously, unique design. There are plenty of places to search: yard sales, thrift stores, flea markets, estate sales and online marketplace listings, just to name a few. If the item isn't entirely the way you want it, you can probably spruce it up yourself.

Consider Alternatives

Suppose your budget is tight or the estimate for what you want turns out to be a lot higher than expected. In that case, you may consider making some compromises. Instead of making structural changes, you could make some cosmetic changes for much less money. These changes would still create a fresh feeling. For example, you might have initially decided on marble or soapstone countertops. If they're too pricey, you could save a great deal by choosing an alternative. Granite and quartz are excellent, less expensive substitutes and are still beautiful and durable.

Purchase a Home Warranty

A home warranty can save you money in the long run if you feel that you might have issues with some of your more costly appliances. A home warranty will cover specific equipment and malfunctions by repairing or replacing the appliance.

Suppose you're renovating your home to put it on the market. In that case, a fresh coat of paint on the walls and trim can go a long way on your return on investment, sometimes more than installing new fixtures and more expensive updates. Maybe you're planning on staying in your home long-term and just want a change. If there's a lot of work that you want to be performed, you can complete the renovation in stages. Complete a little at a time if your budget won't allow them all at once. By taking some of these tips, you can be on the road to realizing the renovation of your dreams.