Saving Money for Home Upgrades

Feel like your home needs a bit of a makeover? If you want to upgrade your home, whether to live in or to sell, you’ll really need to budget for it. This means saving a little bit of money each week or month until you have enough funds to cover your renovations and upgrades.

The improvements you make might be as simple as changing light fittings or installing a new Bosch dishwasher or they could involve larger jobs, like repainting your whole house or redoing your floors.

Whatever you desire, it all begins with research and some discipline. Here’s a step-by-step plan to help you achieve your home improvement dreams!

1. Make a List

If you want to upgrade your home, you’ve probably got some ideas of what you want done. So, start by making a list of all the improvements you ideally want to make. It’s important to be specific in your requirements, too. If you want to redo your kitchen floor, for example, will you be going for timber, concrete or tiles? Or if you want new tap fittings, will you choose silver, chrome, brass or gold? 

2. Contractors or DIY?

Next, decide for each item on your list if you’re going to hire a contractor or whether you’re going to do-it-yourself. Bear in mind that hiring contractors will involve additional costs. Some upgrades, like painting a room, may be completely achievable on your own, but others may require the help of contractors, particularly if they are on a large scale, or if there’s electrical or plumbing work involved.

3. Prioritise

Your dream list may or may not be feasible, depending on your finances. Now that you’ve got a list, prioritise it – put your “most wanted” or needed upgrades at the top and your less urgent or necessary items at the bottom. If you’re thinking of selling your home, you may want to consult a conveyance or estate agent as well, to get their opinion on what upgrades will increase your home value the most.

4. Research Costs

You’ll never know how much home improvements cost without conducting some research. Research all of the items on your list (or, if your list is long, the ones with top priority) and make a note of approximate costs for each one. Don’t forget to include costs for both materials and tools, as well as labour hire.

5. Research Rebates 

Depending on where you live and what improvements you’re making, some home upgrades will be eligible for certain rebates from your Government. These can include solar hot water rebates, toilet dual flush rebates and rebates for rainwater tanks. You will need to research what rebates are available to you and then deduct these from your estimated costs.

6. Start Saving

Now that you’ve got a good estimate of your total renovation costs, decide how long you’re willing to save for before starting your home improvements. Can you wait a year? Six months? Or only six weeks? Whatever you decide, divide the total cost of your upgrades/repairs by the number of months or weeks of your “waiting period.” This will tell you how much money you need to save each week, fortnight or month. Now, start saving!

7. Further Tips

• If you’re not a great saver (or budgeter), consider setting up a direct debit for your savings plan or asking your partner to manage this for you both. 
• When it is time to source materials, search for bargains and second-hand materials (if appropriate) and negotiate on labour costs where applicable.
• You may also find that with a little more research, that you can actually do some of the jobs on your list yourself, rather than hire a contractor. Asking friends or family for help can be a good idea too.
• Finally, don’t rush your home upgrades. Nothing’s worse than ending up with a rushed job. Plan well and take your time – and don’t cram in too many renovations at once!