Karen's Cottage Make-Over: Setting a Budget

Once my offer to purchase was accepted on my cottage, it was time to get to work. Before I could enjoy cocktails on the dock, I had to work out a realistic budget for the renovations I wanted to make, and figure out what my priorities would be.

Here are some tips on setting a budget - for any project.

Setting a Budget

There are two ways to set a budget:

1. Determine how much you can afford and then select the most important issues. You can then complete as many of these tasks as the budget (and timeframe) will allow.
2. Or, you determine all the priorities and then get costs for these items – and this will give you a budget number.

Often I find it is a combination of the two methods that works best. I start with #2 until the budget grows to a place that becomes uncomfortable. To further complicate this process, renovations aren’t an exact science since so much of what you are dealing with is hidden. So until you get into the job, you don’t necessarily know the full scope. It is good to keep some of your budget reserved for these unknown things because inevitably something will pop up. I suggest leaving 20% of your budget in a “secret” reserve fund. If you end up not needing this fund, buy something fabulous for the finished space. If you do need the extra money, it’s there, and you won’t feel too stressed about the financial side of things.
 

By: Karen Sealy of Sealy Design Inc www.sealydesigninc.com

Tags

Rating

Average (0 Votes)