How to Create A Home Renovation Budget (FREE spreadsheet) - ORC Week 4
Week 4 of the
One Room Challenge
is here... and nothing much has changed since last week. The room has been
painted, all construction has been done, and we're just waiting on
furniture, lighting, and a rug before we can put this room back together. So
for this week, I thought I would dive instead into a discussion on how to
create and plan a home renovation budget.
Welcome and thanks for stopping by! If you're new here, I'm a
Toronto-based blogger and plaid enthusiast who mixes DIY with traditional
design. Catch up on Week 1, Week 2, and Week 3 of this guest bedroom remodel.
Home Renovation Budget
How much should you spend on a renovation or remodel? How can you renovate cheaply? Where should you save and where should you splurge?
I'm talking about all those questions today and sharing
a FREE home renovation budget template (Google sheet) that you
can use to budget your kitchen renovation, bathroom renovation and more.
When most people think "renovation", the first question is "how much is this
going to cost me?". The home renovation budget is one of the first things
that comes to mind - but I like to think of it as one of the last.
Top-Down vs Bottom Up Budgeting
Let me explain my thinking: let's say you want to renovate your bathroom for $8000. You've come up with that number based on some estimates you found online. You've price shopped some of the bigger items ($2500 for a vanity, $1500 for faucets and plumbing, $1500 for tile and flooring), have blindly guessed at labour and other costs, and have determined a number you can afford.
Starting with a set amount is known as top-down budgeting.
Top-Down Budgeting
The top-down approach put budget as the main driver of
your project. Every decision is weighed against the budget. That means
you'll be counting your pennies the entire way and you'll likely have to
cut out items that fall out of budget, or increase your budget altogether
if you really want to make them fit.
My view on things? What good is a room that is delivered on budget, but all you can think about is how you 'settled' for the less-comfy but budget-friendly sofa, or that you didn't get the wallpaper you really wanted?
This means looking at layout, function, and design needs as the starting
point. These will determine what construction, materials, and furniture
elements need to be in the budget.
My view on things? What good is a room that is delivered on budget, but all you can think about is how you 'settled' for the less-comfy but budget-friendly sofa, or that you didn't get the wallpaper you really wanted?
➡️ There needs to be a balance between the quantitative and the
qualitative, between the hard dollars of the budget right now and the
intangible enjoyment of the room in the future.
I do a bottom-up approach when it comes to budgeting for a
home renovation project. Bottom-up means determining what the essentials
are first (without consideration given to cost).
Rather than looking at budget as the priority, I like to consider
other factors first.
Bottom-Up Budgeting
- I start with a Project Assessment to see if this project is even a priority and if I want to devote my time, energy, and money to doing it.
- I evaluate the Current State of the room to determine what needs to be done and who will do it (DIY or hire professionals)
- I create the Design Plan and identify how I want the room to look and outline all the parts and items that go into making that vision a reality
- Then I create a full budget that shows me a line-by-line itemization of expenses.
Because a bottom-up budget is based on all the steps preceding it, it's based on my real and specific situation and allows for design to be a priority.
Taking a bottom-up approach means you've done a lot of the hard work and decision making before you even talk about numbers.
Your home renovation budget isn't based on a random spreadsheet you've found
on the internet -
it's based on the particulars of your house, your desires, and your
financial situation. Because of that, it makes it easier for you to see and decide where to spend
and where to save on your budget.
I've created this FREE home renovation budget spreadsheet to help with that task. This home renovation cost calculator contains:
FREE Home Renovation Budget Template
Figuring out exactly what the expenses cost can be difficult. Renovations are complex, the steps and costs change depending on the type of room and scope of the project. It helps to have a starting point.I've created this FREE home renovation budget spreadsheet to help with that task. This home renovation cost calculator contains:
- Worksheets for bathroom, kitchen, laundry room, and bedroom renovations.
- a Materials Cost tracker
- a Tile Units estimator. You can use these sheets to determine things like how much 3"x6" subway tile you need to cover your shower walls.
Where to Splurge vs Save
With your budget in hand, you can now move on to more challenging decisions
like where to splurge and where to save. There are a few ways to save on a
renovation or remodel and it comes down to prioritizing and comparing costs.
Here's generally how we allocate the budget and prioritize expenses:
Ultimately, my philosophy is not to sacrifice style because of
budget.
By starting from the bottom-up and making conscious decisions that suit your home and the way you live, making design a priority and finding a way to achieve that look in a budget you can live with, you end up with a room that is beautiful and cost effective.
Splurge:
-
Hire the experts for things that go behind the walls. For example,
this means hiring a qualified and skilled electrician to do the wiring, a
plumber to do the plumbing, and an HVAC expert where needed. While Sean
can do simple tasks like installing the faucets or changing out the light
fixtures, when it comes to moving or repairing the actual systems
themselves, we hire professionals. These systems are behind walls or
beneath floors and you don't want them to fail so ensure they're built
correctly from the start.
-
Spend on the most important fixtures or furniture. In each room,
there's typically a piece of furniture or fixture that is critical. If it
goes wrong or fails, the whole function of the room fails. In the bedroom,
that's the bed. In the kitchen, that would be your appliances. And in the
bathroom, I'd say the shower and faucet fixtures, toilet, and tub would be
most important. For these items, don't be cheap! Select quality products
that will stand up to constant use and perform to a high standard.
- Lighting. While lighting is one of the last things I suggest adding to your design plan, I think it is one of the most important in terms of how you experience a room. Your room could be gorgeous and have the most luxurious furnishings, but if it isn't lit properly, it will fall flat. Have a variety of adequate light sources (general, task, and accent) and use your lighting to add character. Your eye is naturally drawn to a light fixture in the centre of the room. Make it a standout.
Save:
-
Demolition or site prep costs. This is a great way to save on
your home renovation project. Doing the hard labour of demolition and
removal of the debris can result in cost savings.
-
Beginner DIY projects. There are some tasks that even the most
novice of DIYers can do. These would include painting, assembling
furniture, hanging curtain rods, and even laying tile. The more you can
take on yourself, the more you will save.
- Design alternatives. Here's where a bottom-up approach to budgeting really proves its worth. Creating your design plan and outlining a full budget based on that ideal end point gives you room to manoeuvre and revise your budget downwards. You know what you want the room to look like but now you can find lower-cost alternatives that fit with your budget. Have you put the double sink custom vanity with marble top and soft-close drawers into your plan? Consider a similar looking off-the-shelf vanity with laminate top and doors instead of drawers. Swap out the Restoration Hardware sconces for dupes from Amazon at 1/3 of the cost. Even better, now that you have actual products identified, wait for sales and get exactly what you want at less cost.
By starting from the bottom-up and making conscious decisions that suit your home and the way you live, making design a priority and finding a way to achieve that look in a budget you can live with, you end up with a room that is beautiful and cost effective.
Easy Renovation Planner
While the free home renovation budget spreadsheet is more than enough to get
you started with planning your project, you might need to track additional
information.
The
Easy Renovation Planner, available in
my Etsy shop, provides you a comprehensive project management dashboard.
S P E C I A L O F F E R
With your renovation plans clearly laid out, you can minimize the surprises and manage your project like a pro. As a reader of our blog, enjoy 10% off the Easy Renovation Planner with code TAKE10
Next week, I hope to show you progress on our room. For now, hop over to the
One Room Challenge blog
and see what the rest of the Guest Participants are up to.
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