Home Improvement Costs – Avoid Overspending and Save on Your Next Project

Home improvement is a popular way to increase your home’s value and improve its comfort. It can also be a great way to stay on top of essential repairs and maintenance, which keeps your home in good condition for the long term. However, it’s important to be aware of how much different projects can cost before you start planning a home improvement project. If you’re not careful, you may wind up spending more than you planned or going into debt. Luckily, there are ways to avoid overspending and save on your next home improvement project.

Many homeowners are preparing to spend on average $7,746 on home improvements over the next two years. However, their decisions aren’t being driven solely by the desire to attract potential home buyers, according to a NerdWallet survey. Instead, the most common reasons for upgrading their homes include making them more comfortable (54%) and feeling more satisfied with their homes (52%).

When you’re ready to make your home improvements, it’s a good idea to sit down and figure out exactly how much you’ll spend. This will help you prioritize which projects are the most important and how to budget for them. It’s also a good idea to compare prices of different materials before committing to anything, especially when it comes to big-ticket items like new floors or cabinets. If you can find similar products at a lower price, it could save you quite a bit of money.

One of the most common mistakes that homeowners make when completing a home improvement project is overspending. This can happen because they don’t understand how much certain projects will cost or they simply overestimate how long the work will take. It can also be a result of choosing expensive options that aren’t in their budget, or if they hire a contractor that charges more than they expected.

Fewer than half of homeowners who took on home improvement projects over the past two years reported that they were able to pay for them without tapping into their savings, selling assets or going into debt, according to a NerdWallet study. This is down from the 52% who said they were able to do so in 2020.

When it comes to financing home improvement projects, you can choose from a wide variety of loans and credit cards that are available today. You can also use savings from your checking account to fund your projects, or borrow against the equity in your home. Whatever route you choose, make sure to research the terms of each loan so that you’re aware of how much interest you’ll pay.

Homeowners who want to save on their upcoming home improvements should consider taking advantage of discounts and sales offered by stores like Lowe’s and Home Depot. Purchasing items such as flooring, fixtures and paint during these times can reduce the overall costs of your upgrade project. Similarly, using online tools like NerdWallet’s Home Improvement Cost Estimator and DIY Cost Tracker can help you keep tabs on your expenses so that you don’t overspend or wind up in debt when it comes time to complete your project.