What to Do When You’re Running out of Budget During a Renovation Project
Thursday, December 7, 2017, 6:00 AM | Leave Comment
A renovation can quickly get out of control with unforeseen expenses. Some expenses may be minor line items to the budget. Others may be large items that were not accounted for in the planning phase.
Here are some ways to help with funding your renovation project when your budget is depleted.
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Do It Yourself
Even if you don’t have experience completing home improvement projects, you might know someone that can help.
Some of the easier projects, like painting, can be completed over a weekend. You might have hired a contractor that can give you some pointers on ways that you can pitch in to reduce the cost.
You can help to cut costs by being willing to take on some of these projects. There will be some costs involved with purchasing your materials.
It can be very satisfying knowing that you are doing the work on your own home. As with anything, there is a learning curve.
If you are planning on taking on bigger projects, do some research online. This can save you a lot of time and failed attempts if you have some idea of what you are supposed to do to complete the project.
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Get a Small Loan
Maybe the money has run out for your renovation, and there are a few items that just need to be finished up.
Or perhaps you’re in the middle of a larger project but want to wrap it up until you can afford to continue on with it.
Consider taking out a small loan of no more than $1000 with a payday loan, like those from Power Finance Texas, to keep the project moving forward. This type of loan is good for a short term solution.
You can get the money very quickly without having to undergo a credit check. It would need to be paid back in a short amount of time.
Most likely as soon as your next paycheck plus the interest accrued on the loan. This is a good option for those last-minute details or to overcome an unexpected expense on your renovation project.
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Consider Credit Options
Using a credit card can be a way to close the budget gap. There are store credit cards that would allow you to purchase your materials. Some stores even offer no interest for a set amount of time.
Using a credit card would be a zero interest short term loan as long as it was paid off by the end of the statement period. The caution with this is if you are unable to pay off the card. Credit cards typically have high interest rates.
This option could end up costing you more money than the benefit of completing the renovation. You can request a cash advance on most credit cards. This would allow you to pay your contractor the difference in the budget shortfall.
Be careful using credit cards. Many homeowners can quickly get underwater when they rely on this method for filling the gap.
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Scale Back
If major parts of the renovation are out of reach with the budget, consider scaling back the project.
Make a list of what is a priority and needs to be completed to make the project livable.
If you are working on getting a larger loan amount, you may be disqualified if your home is deemed uninhabitable.
Things that should be considered a priority are safety items, a working bathroom and a functional kitchen.
Paint, flooring, and finishing touches would not be a priority. If you can adequately live in your home, you may have to make some sacrifices if you are out of money. It may not be the most comfortable place to live, but it will meet your basic necessities.
When you have the finances available to continue the project, make sure to build in a contingency budget for any unforeseen costs.
Even with the best laid plans, renovations can exceed your budget. If you are experiencing a budget shortfall, try using these tips to get you back on track.
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Hannah / Freelance Writer
Email: hannahwhittenly@gmail.com
