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.