Remodeling a kitchen is an exciting, albeit expensive process. How do you know the amount to budget? How will you spend your funds? What if something unexpected comes up during the remodeling project, and you did not budget for it? Having answers to these critical questions is essential to avoid financial stress and throbbing headaches in the future. So how do you set up a kitchen remodeling budget? Let us look.
Decide on a budgeting amount.
Decide how much you want to spend, and do not go over that amount. Ask yourself these three questions:
- What amount can you afford? Take a realistic look at your finances. As of August 2020, the average cost of an upscale kitchen upgrade is $80,000.
- How long do you plan to stay in your home? If you do not intend to stay in your home for at least five years post-renovation, then your kitchen’s upgrade will be a real estate investment improvement. Only spend what you believe you will get back upon selling your house. However, if you plan to stay in your home for more than five years, spend money on a kitchen upgrade that you want so you and your family will feel comfortable.
- What is the overall style of your neighborhood? Is your community ordinary and simple or classier and chicer? If your home has an upscale kitchen in the middle of a middle-class neighborhood, you will lose money on your investment when you try to sell your home, so do not overdo it.
Know the breakdown of the costs.
On average, 20% of a homeowner’s overall kitchen remodeling budget is for labor alone. Let us look at the average cost breakdown for the rest of the kitchen remodeling expenses.
- Other (e.g., flooring, a kitchen island, countertops, or a backsplash) =7%
Prepare for the unexpected.
Set aside 20% of your budget in case of an emergency, or for the unexpected. You will be glad you did.
Make a design priorities list.
What design feature is off-limits for compromise? What do you have to have in your kitchen upgrade? What remodeling features or aspects are you willing to negotiate on or even let go of to stay within your budget? Make a list of your design priorities to stay focused and keep your budget on track.
Create a budgeting spreadsheet and check it often.
On a budgeting spreadsheet, record your budget for each of the cost breakdown amounts listed above. Next to them, record the amount you actually spent, and then calculate the difference. Are you over your budget? Under your budget? Stay on track with your remodeling budget by using a budgeting spreadsheet, and you will be good to go.
You can stick to your budget by avoiding extra and attractive, albeit unnecessary features. But by doing your homework and setting monetary limits, you will not just have the upgraded kitchen you want, but you will have one you can afford. Contact us today and let us help you improve your kitchen at a comfortable and feasible cost!