Your Essential Guide to a House Renovation Budget
The allure of a house renovation is undeniable, promising a home tailored perfectly to your lifestyle. However, without a meticulous renovation budget, that dream can quickly turn into a financial nightmare. Unforeseen costs, scope creep, and poor planning are the biggest culprits that derail projects and inflate final bills.
A successful renovation doesn’t just require a great design; it demands a realistic, disciplined financial plan. Understanding where your money goes and how to strategically allocate funds is the most critical step in protecting your investment and ensuring you finish your project on time and within budget.
1. The Golden Rule: The 15-20% Contingency Fund
The most common reason for budget failure is the omission of a contingency fund. When you open up walls, you will find surprises—old plumbing, outdated wiring, hidden mold, or structural issues.
- What It Is: An emergency cash reserve set aside before the project begins,