This is probably one of the most important parts in the process of preparing for a renovation. Be realistic when creating your scope of work or design for your space. When figuring out your budget for your next renovation, there are a few factors that you should consider.
First off, be realistic about what your renovation is going to cost, do your homework, this way you don’t get your heart set on something you can’t achieve.
Second, know the area you live in, for example Toronto, the GTA and surrounding areas are expensive locations with a high cost of living. In these areas your money may not go as far as you might expect.
Third, know when to say no. If you feel like you will be stretching your finances to thin to be able to achieve what you want, then this may not be the time. You can scale down your renovation or wait until you are able to put more money aside and be in a more comfortable financial position.
Lastly, when you budget for your renovation, don’t max out what you are comfortable spending. A good rule of thumb is to stay 10-20% below your max budget depending on the scale of the renovation. This way if problems come up during the renovation, you will have the funds to address them without going over budget.
