Like any good business plan, looking ahead and planning for home renovations will help you to stay on track – ensuring your home sells in any market, even if that’s 15-25 years from now. The most effective way to fund home renovations is to establish an annual budget that will go toward future improvements. This way, you can accomplish regular upkeep and preserve your home’s marketability.
This of it as a five-year home renovation plan, to be reviewed annually and updated in the fourth year. Planning in this way will translate positively to your overall financial health.
Cornerstones for developing your plan:
- Decide on the major renovations you foresee in the next five years such as kitchen, bathroom(s), heating and air conditioning, windows and/or roof.
- Prioritize and establish rough budgets for each.
- Establish an automatic payroll deduction plan that arranges for a set amount each week to be deposited into a savings account or tax-free savings account.
- Review your priorities each year and adjust both your savings contribution and the list of projects.
- In the fourth year, re-write your plan for another five years.
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