When you are dreaming of your next big renovation project, money doesn’t tend to get involved much. It’s only when you start working out the logistics, get some quotes, and head down to your local DIY shop that the sheer cost of it all hits home. And for many people, particularly those struggling to get by, that’s the end of that dream!
But the truth is, it needn’t be. There are plenty of ways you can raise a considerable amount of money for any renovation project – it’s just a question of rearranging some priorities. In today’s guide, I’m going to go through a few suggestions that should help you out – and, with a little luck, will help you get close to your target sooner, rather than later.
Get the lowest feasible price
The first step is to reduce the amount you will have to pay for the renovation by as much as possible. Compare tradespeople and their quotes, but don’t just plump for the lowest – it can often be the sign of a cowboy builder. Don’t be surprised if the cheapest quote turns out to be the most expensive, either – some building companies use them to tempt customers and then have them over a barrel once they get started on the job.
Your best bet is to find a firm that are enthusiastic about your project, and that have a healthy list of happy customers. There are other ways to reduce costs, too. Ask the firm if you could labour for them – that should save you over £100 a day right from the start, as long as you don’t mind getting your hands dirty.
Talk to the builders about materials, too – maybe they know of a cheaper alternative you could use?
Cut back on spending
Every household in the country overspends in some way. And if you are prepared to put a little groundwork in, it is possible to save hundreds – if not thousands – within the space of a few months.
Start by switching your energy supplier – you can compare energy with Simply Switch or other comparison sites – which can save you hundreds across a year. Change your supermarket shopping, too – it’s possible to save up to 20% of your bill by using a cheaper supermarket, which could add up to around £500 after six months.
Consider ditching any expensive TV subscriptions you might have – I know some people who are paying over £100 a month for Sky, for example. Give up your Starbucks coffee, too – a couple of cups a day costs more than £5, and over a month could be costing you over £100.
Just by doing these simple things, you could be sitting on around £1,850 after just six months. And that’s just the tip of the iceberg – a little frugality could save you a small fortune in the same period. Still, think that renovation is completely out of reach?
If you have a decent amount of savings, don’t be afraid to use it, especially if the upgrades are going to help you increase the value of your home.
While I don’t recommend spending wildly on credit to pay for home renovations, there are a few ways to make it work. First of all, think about getting yourself a credit card that offers 0% on payments for a year or eighteen months. As long as you commit to paying it off month by month – perhaps using your new found wealth that you have saved from the techniques above! – it is, effectively, a free loan that won’t cost you a penny.
For major work, it might be worth looking at increasing your mortgage or getting a further advance. Again, be careful that you are only doing this for renovations that will add value to your home.
Finally, don’t be afraid to ask your parents or close family members if you can borrow the money. With interest rates so low at the moment, the chances are that your loved ones are not getting much joy from keeping their money in the banks. So, why not offer them a better rate? They will enjoy a better return on their savings; you get to pay for your renovations, and at a cheaper rate than you will get from a bank loan. Everyone’s a winner!
As you can see, I firmly believe that no renovation or DIY home project is out of reach. But a lot depends on how much you want it. With a lot of dedication and a few lifestyle sacrifices, you could, potentially, have enough put aside to pay for a project within half a year. Good luck!