Building Your Bundles: How to Save up For Home Improvements Faster

A slight increase in real wages and annual discretionary spending has many Americans feeling more confident about their financial situations. As the economy continues to improve, many homeowners are contemplating whether to put that extra money in their savings accounts towards home-improvement projects around the house. How good of an idea is this?

Weighing the Benefits of Home Improvement

Realize upfront that not all home-improvement projects are equally worthwhile. From a sheer cost-efficiency standpoint, you should be asking two questions about home improvements that you’re thinking about doing yourself or hiring a contractor to help you with.

Increases in Home Value

1. Does the home improvement promise to markedly increase the value of your home? Some home improvements involve a huge initial outlay, and take months of contracted-out labor to complete. Other home improvements can be done in your spare time over one or two weekends, and significantly increase your home’s value and energy efficiency.

If you have a plumbing system or kitchen sink that needs replacing, then making that renovation is definitely worthwhile in most instances. Fixing faulty plumbing, HVAC, or electricity systems can be a huge net benefit to your home’s value because these are such elementary parts of a well-functioning home.

In contrast to merely cosmetic changes that might even negatively impact your home’s value, making necessary structural changes like replacing a malfunctioning hot-water heater or rewiring a portion of your electrical system could ultimately save you money over the long haul. The initial outlay, time, and energy that you put forth to fix these critical systems in your home will pay dividends on your home’s increased value.

Ease of Repair

2. The second question to ask is how simple and cost-efficient the home repair is to make. Properly insulating your windows, for instance, is a great example of a simple and cheap home repair that you can accomplish on your own schedule. Weatherproofing or caulking your windows saves you money every month on your utility bills because you’re retaining more heat in the winter and more AC in the summer.
A better insulated home increases your overall home value, so you’re saving money in the short-term and long-term. The cost-benefit of insulating your windows is certainly biased towards benefits. For the cost of a caulk gun, you can significantly increase the energy-efficiency of your home and reap energy savings from one month to the next. You can also make repair easier and cheaper when you find materials yourself. Ask contractors if you can provide them with Allweather Wood for your vinyl decking in Edmonton or your own tile for the shower floor. When you shop around, you can find a lot of material discounts.

Essential, Intelligent Home Improvement

3. It should be added that some repairs have a neutral or negative effect on your finances and home’s long-term value. For instance, changing your granite kitchen counter to an exotic-tiled countertop might seem appealing in the moment, yet prove a poor decision when it comes time to sell your home.
   Takeaway lessons are to make economical home repairs that increase your home’s value and, when in doubt, stick to traditional designs.Consider Smaller Touches
4. Statistics show that significant bathroom remodels cost upwards of $35,000 and a large overhaul to your kitchen costs more than $55,000. In light of the fact that the median salary in the United States hovers around $44,000 and the dubious cost-benefit of these remodels, making periodic adjustments to your bathroom or kitchen seems like a shrewder decision.
   Contractors often try to make costly alterations to your kitchen or bathroom and work these add-ons into a huge kitchen or bathroom remodeling package. You shouldn’t fall prey to this trap. By making smaller adjustments around the house, you can be more assured of making only necessary renovations and spreading those renovations over a longer timeframe.

   The net effect of making smaller, necessary renovations throughout the year is that you’ll save money in the short term, and avoid overextending yourself financially. Further, improving your home’s basic systems (plumbing, heating, etc.) will significantly improve your home’s value while allowing you to keep more money in your savings account for a rainy day.

Tags: Home Repairs

Category: Home Improvements