What you will learn from this episode: 

• The importance of creating your budget

• Maintaining your budget

• How to not blow your budget

Today I want to really dive into how you create your budget for any sized project, how you maintain the budget within reason, and how to not completely blow your budget and get in over your head. Sadly I see that happen – not on my projects because we are pretty good at monitoring it along the way so that this is avoided, but I hear about it through friends, or colleagues, that tell me their stories. I believe all of this can be avoided. 

How? You know me! Research.

Where do you start when figuring out your budget for your particular project?

The best way to start any project is by making a list. And then you start drilling down. If you find out you will need more money than you have. I always suggest waiting until you have the money. Don’t spend $30,000 on your bathroom, and then wish you would have done it differently.

I also always suggest having more than what you plan on spending because things come up, prices change. That way if anything, you have some leftover in the end.

Another idea I give is to work in stages. This isn’t always popular, because that might mean pro-longing your project, and my clients have already waited months and years to get this project underway. But if you can stage your project as your income comes in, you can get the project of your dreams. You won’t be handing off the full amount on day 1. It will be as pieces get installed and your project moves along which will give you time to save the full amount.

Another way to look at your project is to fix up what you have. You don’t have to necessarily rip out everything and replace it to have that new, fresh look you want. If you don’t mind your cabinets, and just want a different color, you don’t have to completely replace them. I know guys that are extremely talented at painting cabinets, and you would never know if they painted them or they came from the factory. That alone will save you thousands of dollars. So there are ways of picking and choosing what you spend your money on.

The last piece I see often is, people start getting to their budget limit and want to start pulling things out. I like to tell people the easiest way to pull back on their budget is with their furniture. That’s something easy that they can bring back in at any time. You could get a cheaper set of furniture until you have the budget to get the furniture you really want. Wait a year, or until you can afford what you want, and then get it. I always recommend making sure you actually have the budget for it instead of using credit cards for everything. 

I always suggest that you have the amount of money in your budget so you don’t have to shave things off. If you know what you want and just don’t have the money to support that, then take a pause until you can come back and support that dream. You might be making some tough decisions, but you will be so much happier in the end if your budget actually supports the true design you are going for.

 If you have questions, please send them my way, I’m happy to discuss this further!

Like this Episode?

• Be sure to check out Episode #19 : Construction Budgets – How to Avoid Common Pitfalls

• Don’t miss an episode, listen on Spotify, and follow via Apple Podcasts, Stitcher, or RSS.

• Leave us a review in Apple Podcasts.