How to Budget for House Renovations

Whether you own or rent a home, there will be times when you feel you want to renovate your house. If you own it then you will be able to do all sorts of things to it, you will just be restricted by your mortgage lender (if you do not fully own the house) and building regs. However, f you rent you will be restricted by your landlord but there are still likely to be things that they will allow you to do, should you want to. However, the main problem with house renovations is the cost. Whatever you decide to do whether it is just painting or buying some rugs to getting a new kitchen or doing a loft conversion there will be costs involved. They will obviously vary but you will still need to come up with a plan as to how you will be able to afford it. There are steps that you can take which will help you to plan.

  • Find out the cost – before you do anything you will need to find out how much the job will cost. If you are having someone do the work for you, then you will need to find out how much they will charge so get a quote. You might actually want to ask several different people to quite for you so that you can choose between them. If you are doing the work yourself or just buying some new furnishings, you will still need to find out how much they will cost. You may want to compare prices between retailers and decide which items you think will offer you the best value for money. Note down the cost as this is the amount of money you will need to find to pay for the work.
  • Check savings – next you will need to check the amount of money you currently have to see whether it will be enough. You might have enough money in your current account or in savings. It is good to think hard about where all of your savings are because you might have forgotten about some and could use them for this purpose. You may have savings that you are reluctant to spend. This is perfectly understandable because you may have saved up hard for them and perhaps want to use them for something specific or keep them for an emergency. However, it could be quicker and cheaper to use them for this job and then save up again rather than borrowing money or waiting to save up more before doing the job.
  • Consider borrowing – if you do not have the money available to pay for what you need then borrowing is an option that you might want to consider. Some people get very worried about borrowing and others borrow without a second thought. It is best to have an approach somewhere between the two. While loans can be extremely useful, they can also be a source of stress for some people and this means that we need to be careful with borrowing. Make sure that you know how much the repayments will be and whether you can afford them and then you can borrow with confidence. You also need to compare different loans to make sure that you get one that suits you and offers good value for money. There is no point in paying more than necessary, but the cheapest loans may not suit you the best so do some research and you should end up with the most suitable loan for you.
  • Save a bit each month– if you decide not to borrow then you will need to save up. This is best done by saving a bot each time you are paid, usually each month. It can be wise to set up a direct debit to pay some money into a savings account each month so that you are able to be sure that you will be saving something. Working out exactly how much to allocate can be tricky, but if you look at what you normally earn and spend you should be able to work it out. You will need to be careful to budget though and make sure that you have enough money left to buy everything that you need.
  • Find ways to save extra – there might be ways that you can also add chunks of money to your savings. There are different things that you could try. You could try to sell things that you no longer need to raise some money. You could reduce your spending on things that are not essential. You may also consider getting another job or finding a way to earn some extra money perhaps online or doing freelance or temporary work. This could earn a bit of extra money and that could be enough for you to put aside and boost your savings.

Is it Worth Borrowing Money to Study?

If you want to study a course of some sort then you will normally have to find the money to pay for it. This can be just a little if it is a small course, but it can get really expensive if you want to do a professional course, degree or postgraduate qualification. This means that you will need to consider whether you think that it is worth getting a loan to pay for the course that you want to do. There are different loans available too, for different types of courses and you need to consider which is the most suitable as well.

Will I be able to Afford to Repay it?

One of the most important things to consider when you are deciding whether or not to take out any loan is whether you will be able to afford the repayments. You will be expected to repay the loan in full, normally in monthly instalments, although this will change depending on the type of loan that you take out. It is very important to find out how much you will be expected to repay and think about whether you will be able to afford those repayments. There will be some loans where repayments will only start once you have completed the course and this will be easier as you will have the time to be working and earning enough to repay it in most cases. However, some loans may require repayment to start immediately and this will mean that you will have to make sure that you have the money available to pay it while you are studying. Most people will not continue to work while they study or will have to drastically cut their hours and you will need to think about whether you will be in this situation and how you will cope if you are. If you are not the only income earner then it could be much easier to manage, but relying on one income is risky if they cannot work for some reason and then you will need to find another way to manage the repayments.

It can easy to assume that you will just somehow manage but it is wise to actually do some calculations. Find your bank statements and look at how much you always have to pay out and then work out whether you will be able to manage extra payments on top of that. If you take out a student loan, then the repayments will come out of your tax code and will be based on your earnings, which means that they should be much more affordable as you will not pay any if you are earning nothing or a small amount.

Will the course make a Significant Difference to my Career?

It is worth thinking about the effect that the course will have on your career. It is likely that you are doing it either because you want to progress in your career or so that you can work in a specific area that you are interested in. It is worth considering what career you want to do and whether doing a course is the right way to get into that career. If you are already working in that area and are looking for a promotion it is really wise to fid out form your company whether the course you are doing will guarantee that, so that you can decide if it is worth doing. You might be looking to move to a different company and if so, you need to investigate the jobs market to see whether there will be jobs available to you doing what you hope to do once you have the additional qualifications.

Will a loan be good value for money?

You will be paying for the course and therefore you will want to think about whether it will offer you a good return on your investment. The money that you pay out will be like an investment because you will be bettering yourself with it and as a result should be able to get a better paid job. It is good to think about what job you will be able to get and find out what the salary might be to work out how long it might take for you to earn the value of the loan. For example, if you are doing a course that will see you move a career which will pay a few thousand extra a year, work out how many years you will have to be earning that extra few thousand until you have got back the money that you paid out for the loan. Then you will be able to think about whether you think that it was worthwhile. You may just really enjoy studying and if this is the case you will need to think about whether you feel the enjoyment is worth the money that you are paying out.