How to Save Up for Large Home Projects
Thursday, February 6, 2020, 6:00 AM | Leave Comment
You have a major home project in the works, but don’t have the money in the bank to pay for it.
How do you save up the money to tackle large home projects? Here are some practical tips to get you started.
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Set a Target
How much money do you need to save? Let’s say you need a new roof. You think it will cost $8000 to $12000 to get the work done. That’s a pretty wide range. The better option is to get a few quotes from professional contractors.
Residential roof installation costs can vary depending on the contractor, materials used, and repair work needed. The roofer will be able to give you a more accurate estimate. With a solid target in mind, it’s time to save some money.
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Automate Your Savings
Figure out how much money you can save from each paycheck towards your home project goal. Then, automate it. For example, let’s say you want to save $300 per paycheck. When your paycheck hits the bank, set up an automatic transfer of $300 to your savings account.
Removing it from your spending account keeps it safe. You live off the amount left.
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Reduce Expenses
Take a close look at your spending. Are there areas where you could temporarily reduce spending?
Take your lunch to work four days a week instead of eating out every day. Reduce your clothing budget by 50%. Start an at-home fitness program and drop your gym membership. Cancel the subscriptions you no longer use.
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Generate More Income
Getting a side hustle is an easy way to build up money for that project. If you have extra time, grab a part-time job close to home. For more flexibility, find a way to make money from something you love.
If you love animals, let your friends know you’re available for pet sitting. If you love teaching others, try your hand at tutoring. For the well organized, find a job as a virtual assistant.
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Save Bonuses, Raises, and More
Every bit of extra money that comes in should go towards your savings goal. This includes work bonuses, pay raises, Christmas/birthday gifts, and tax refunds. Every extra penny you save can go towards getting that major home project done.
