Establishing a Budget
A little overwhelmed with your upcoming project and don’t know where to start? Careful planning is key to completing the renovation of your dreams while not draining too much out of you, or your wallet. The first step in the planning process is establishing a budget. What is a budget? A budget is the amount of money you want to invest into a particular project to update your home. Without one, spending can easily spiral out of control and quickly turn into a large investment of money with a disproportionate return to the investor (you).
What can establishing a budget (and sticking to it) do for you?
Sets the expectation for the project right from the beginning.
Shows you if your goal is attainable and realistic at that time.
Helps to control overextending yourself and your finances.
Gives you a goal to work towards and save for.
Establishes a price point for both the products and services you choose.
Allows the project to move consistently along a scheduled timeline.
Keeps you in control of the project.
These are just a few of the ways establishing a budget can make a project run more smoothly and efficiently which equates to money and time saved.
Below are recommendations on what a typical budget might look like based on your price point.
The National Kitchen and Bath Association recommends investing between 10% and 25% of your homes value into a kitchen remodel. The three price points can be categorized as “Good, Better, and Best”.
Good- 10-15% of your home's value
Better- 15-20% of your home's value
Best- 20-25% of your home's value
The National Kitchen and Bath Association recommends investing between 7% and 15% of your homes value into a bathroom remodel.
Good- 7-10% of your home's value
Better- 10-12% of your home's value
Best- 12-15% of your home's value
There is no right or wrong choice, it simply depends on what you have established you can afford for a budget. It's about adding value to the places you feel should be more valuable. However, spending any less than "good" can hurt your homes value, with low quality products and poor craftsmanship being quite clear at a walk through. Spending any more than "best" won’t necessarily add appraisal recognized “value” to your home for resale, but it may be what it takes to make your house a home-that being one that you will never sell.
Use our budget calculator below to help you get started on figuring out your budget today!
PLEASE NOTE: This calculator is merely a guide and the numbers generated are neither implied nor an actual quote/estimate by MJ Martin Design Woodworking, LLC. Based on the industry climate at any point in time, costs in any given category may vary drastically. It is the duty of the customer to stay informed on these changes. MJ Martin Design Woodworking, LLC assumes no liability in this matter.