Building your own home is exciting and an experience of a lifetime. But it’s also costly, complicated and challenging, regardless of the size of the project and how much money you are willing to spend for it. That’s why it makes absolute sense to establish a budget, and develop a plan that lets you diligently stick to it. Having a smart budget minimises delays, helps monitor spending, and ensures that you’ll have sufficient funds to cover all you want and need for your home.
Make sure your home building project is on track and within budget by considering the following best practices:
Save VS Splurge. Set your priorities early on. Identify and be very firm about the elements that are non-negotiable for you, and the areas where you are willing to compromise. For instance, if you absolutely love cooking and sharing meals, then investing in a spacious kitchen should be a must. Meanwhile, if you’re not particularly fond of gardening, you can sacrifice some lawn space to give way to more indoor space.
Identify the “untouchables.” Never cut corners when it comes to essentials and other components that make your home safe, secure and healthy to live in. Allocate the right budget for the main systems of the property, including your heating, cooling and ventilation system, electrical and plumbing systems, insulation, roofing and the foundation of the structure. For these items, make sure to leave the installation to professionals.
Make it detailed. Develop a budget that shows you a clear and easy understanding of your expenditures. Document every penny you spend and do an accounting and review throughout the project proper. To boost accuracy, you can use modern budget tracking tools such as spreadsheets, software or an app.
Shop around. Never go for the first quote and don’t just wing it according to an estimate. Do thorough research before you sign up a contractor: surf online for reviews and recommendations, ask family, friends and contacts for references, and have a meeting with potential contractors and suppliers before you make a decision.
Think long-term. Budgeting does not automatically mean cost cutting, but more about investing for the future. When deciding on the elements of your future home, think about how sustainable they are and how they can impact your lifestyle. For instance, installing energy efficient windows or solar power heaters can mean increasing your construction costs a bit. But the savings you get from lower energy consumption for life can mean significant return on investment.
Plan for emergencies. Sticking to your budget is your goal. But sometimes you need to have some flexibility with your plans as well. A lead worker getting sick, unforeseen extreme weather conditions or sudden family events – these are just some of the things that may come up that are outside of your plans. The best way is to think about risk management early on and devise some margin of error for the unexpected.