December 14, 2020
Whether you have decided on adding on a room to your house or you just want to do it up to get a handsome sale price, budget is always a priority. Much as you opt for the most affordable options for revamping, you cannot get it done in the right way if you do not know how much it will set you back. Although there are some do-it-yourself home improvement ideas, you may need to hire a contractor.
If you opt for the latter option, you can check online or interrogate with some of the contractors to know an estimated price. If you choose the former option, you must know how much you will have to spend on material, and the opportunity cost.
Of course, when you will do it yourself, you cannot go to your workplace. To estimate the total cost you will likely bear in both the options, do not forget to find out the opportunity cost. Here is how you should save for home renovation.
Calculate the cost
Before you start setting aside money for your home improvement project, you should know how much it will set you back. Suppose you have to revamp your kitchen next year, you must have started saving money a few years earlier so by the following year you could have enough money in your savings account.
This all could come to happen only if you had an idea of the cost of the home renovation project. If you have decided to renovate your home, you will start budgeting now. Ask yourself the following questions: How much can you pay down for home improvement? How much can you set aside every month? Do you want to fund it?
Having an answer to these questions, you will have a clear idea of how long you will take to set aside a particular amount of money. Of course, you cannot decide on the exact cost, and if your savings fall short, you can take out unsecured personal loans in Ireland.
Contribute to your savings as much as possible
Saving for the home renovation is easier said than done. Try to open separate savings account for this purpose. Since you will use this money entirely for a home improvement project, make sure you do not slip into it. You should use a saving account for compound interest rate if you think you will need more than six months to reach your goal.
However, such accounts will not let you access funds in that particular period. One of the most significant benefits of such accounts is you can get a fair amount of interest on your savings. Try to link it with your paycheque account, so you pull money automatically.
Further, you will have to cut back on your spending. Since it is an additional burden on you, it is always advisable to stick to a lean budget. Stop spending on non-essential expenses like gym and club membership and put that money to the home improvement project.
Create other income sources
If you have more income sources, you will be able to add to your savings account quickly. In the interim, if you come up with an unexpected expense, you can manage to pay for it without compromising your goal.
If you can manage to do a part-time job or freelancing with a full-time job, go ahead. Several online sites are there that invite freelancers to login and accept multiple projects of their own choice. However, there are other side gigs as well, for instance, creating a YouTube channel, invest in low-risk investments etc.
You should always try to create a budget for the home improvement project. Make sure that you stick to your saving goal. However, likely, your savings may not be enough to cover the entire cost. In that case, you can take out loans.
A bad credit rating may hold you back from getting a loan approved, but you can successfully qualify for the loan at affordable interest rates. Just type in the search bar where to get a loan in Ireland with bad credit at lower interest rates, you will get a list of some reputable lenders offering these loans at competitive interest rates.