BUDGET ADVICE

How to Crunch the Numbers

Everyone knows that kitchen renovations can spiral out of control quickly, so you need a preemptive attack. To avoid the money pit, stick to the plan and make room for the unexpected. With careful attention to detail, you can make it through with your budget - and sanity - intact.

 

Break It Down

Costs vary from project to project, but the following breakdown is a good rule of thumb as to how, and where, your money should be spent.

25-30% of your budget on labor

25-30% of your budget for structural and mechanical updates

25-30% of your budget on cabinets, fixtures and appliances

15-20% of your budget on unexpected/additional costs

 

FINE TUNE

Narrow dow your choices for cabinetry, countertops, flooring and lighting as soon as possible to establish a baseline budget. Knowing which appliances you want can flesh out costs and give you a head start.

THINK OPTIONS

If you're looking at doing a major renovation, you may want to consider tapping into a home equity line of credit or another homeowner financing plan. Talk with your bank or lending institution for details on all available options.

ALLOW FOR LEGROOM

It's important to save for a rainy day, even in home design. Stash about 15-20% of your overall budget in a separate account for unexpected costs, last minute changes and incidentals. Having a safety net can help keep you calm during construction.

DON'T DEVIATE

Deviations from the plan can bloat the bottom line, so aim to keep the changes (on your end, at least) to a minimum. Communicate your budget with your contractor to keep track of your costs.

 

 

 

Northern Michigan Hardwoods, Inc.