Whether you’re building from scratch, or just renovating – setting a budget is pivotal to the smooth running and success of your project. Budgets do take a lot of time, effort and brainpower, however, we can guarantee you that you’ll much rather put in the hard yards now, than having to deal with stressful issues later once your build is in progress. Here are four reasons why setting a budget and sticking to it is crucial.
- You’ll know what you can and cannot afford
The main purpose of having a budget is to make you feel financially prepared for your building project. Don’t aim to set your budget as low as possible as this sets you up to overspend. Instead, be realistic about how much items cost. If your budget comes out higher than expected, you can always delay the renovation until you’ve saved enough money.
2. You’ll spend how much you want to spend.
No matter how big or small your building project, costs can accumulate quickly. Setting clear budgets to prevent making bigger dents in your bank account than intended. This is ever more important when you only have a certain amount of money available or are borrowing from the bank. Blowing your budget could result in serious issues like needing to delay the stages of your project, or even worse aborting the project.
3. Decision making will be much easier.
When you’re building or renovating, there are A LOT of decisions you need to make. For example, if you’re renovating your bathroom, you have to decide what floor tiles you’d like to use, what material you’d like the bathroom system to be, what lights you would like to install and the list goes on. When deciding on such components – besides style, quality and material, your decision comes down to the price. When doing your research online, it’s very easy to say you want this and that however, this will easily cause you to overspend. Always check and align with your budget to ensure that the outcome is within your intended price point.
4. Plan for the unexpected
To be prepared for unexpected costs which may pop up along the way of your build or renovation, it’s recommended to add at least 15% on top of your intended spend in your budget as a contingency buffer.
For more tips on building and renovating, visit https://elitebuilderadelaide.com.au/blog/.