Remodeling your kitchen is not an easy undertaking. Not only do you have to figure out the design, layout, and tens of other factors, they also have to fall in line with your allocated kitchen remodel budget.
Although it may seem like an uphill task to set a budget, it’s easy if you have an organized approach to budgeting for a kitchen remodel. These steps will help you with the process, and make budgeting easy and organized.
1. Know What You Want
Most people believe that the remodeling process begins after you meet a contractor. Not true.
In order for you to have a clear idea about the process, you will need to give it some thought beforehand. Think about how your remodeled kitchen will serve you better. This will help you gain clarity when it comes to your needs.
A lot of back and forth between you and the contractor can be a hassle, considering the amount of time that would take. On the other hand, approaching your remodeling process with a clear idea would save you a lot of effort, and help increase your chances of sticking to your budget.
2. Do Not Go Overboard
In many cases, sticking to your budget is a bigger task than setting the budget itself. Before you carry on with other steps, it’s crucial that you set a realistic budget that is in line with your remodeling plans.
Let’s have a look at the numbers first to get a better idea. The average cost for an upscale kitchen remodel is around $80,000. Your contractor will give you a more personal estimate based on your preferences.
After you get an estimate, you need to take your personal financial situation into consideration before moving forward. Just as much, be sure to obtain quotations from different contractors before making your decision.
3. Keep Tabs on Everything
An excellent technique to make sure you stick to your budget is to keep a spreadsheet. This spreadsheet will help you in making an itemized checklist of where your money is being spent.
Costs tend to pile up quickly during remodeling and before you know it, you’re drowning in a pool of bills and invoices. By maintaining a spreadsheet from day one, you’ll find that managing costs is so much easier to do.
Not just that, a spreadsheet will also help you track your money in real-time. This will help you in keeping the costs under control, and to make changes wherever necessary.
With your expenditure in check, you can also determine if you have any extra cash left from your budget. If you do, you can use it for some luxurious purchases as well.
4. Expect the Unexpected
Remodelers face unexpected problems all the time. For instance, they can uncover outdated wiring or some nasty mold in our kitchen walls. These problems might take you by surprise, but they shouldn’t make a dent in your budget.
To prepare for this, you can keep 20% of your total budget dedicated solely to covering unexpected costs. A dedicated percentage will help you deal with the problem in an efficient manner as opposed to you scrambling for more money when the time comes.
5. Don’t Forget to Prioritize
You have to acknowledge the possibility that down the line, you will have to pick something over the other. No two components of a kitchen are of similar value. Hence, you will need to prioritize in order to budget efficiently.
How will you do this? Simple.
Are your cabinets falling apart? You might want to focus on that instead of getting decorative decals. Prioritizing your remodeling needs will help you understand where you need to put in your money for the kitchen remodel.
6. Financing Your Kitchen Remodel
A big part of budgeting is to figure out how you will finance the remodel. Most of us don’t have $80,000 lying around and even if we do, it’s not the wisest decision to pull them all out at once.
The most common way to finance your kitchen remodel is to take out a loan. Most people prefer to take out equity loans as they are tax-deductible. You could also consider refinancing or a personal loan.
Tip: Don’t forget to consider interest and loan origination fees, as well as the timeline of the loan procurement itself. Most contractors will ask for a deposit in advance.
7. Factor in the Sweat Equity
There are many tasks around the kitchen that do not need the help of a professional. We are talking about things like re-moving the cabinets to some light paintwork.
These are tasks that you can do on your own. Factoring in DIY work will help you shave off unnecessary costs and give you a more accurate budget.
8. Break It Down
Every aspect of your remodel will cost differently. In order to budget properly, you need to know which aspect will consume more of your resources. Here is a breakdown of different remodeling expenditures:
- 30-35% – Cabinets
- 20-25% – Labor
- 10-15% – Appliances
- 8-10% – Flooring
- 7-9% – Electrical
- 6-8% – Countertops
- 5-7% – Plumbing
- 2-5%- Demo
- 1-3% – Permits & Other
9. Do Not Go for Any Extras
Remodeling your kitchen or even a kitchen update is a dynamic process as you will have to make many decisions along the way. If you ever find yourself asking the question, “Maybe we should add this…” Stop right there!
Adding extra items to the remodel is a slippery slope that leads to budget purgatory. While it may be tempting to add small fixtures or details here and there, do not do it unless you have allocated it in your budget. Instead, save these additions for another time or just do away with it. This will help you stick to your budget at all times.
Kitchen remodels are expensive and grand. While budgeting your kitchen remodel can be difficult, it is worth all the effort and time that you spend so long that you have planned it out efficiently.