DIY Home Reno: A Financial Hit Or Miss?

Are you a DIY junkie that loves to save money? Then this article is for YOU!

At some point, we all have been inspired to take on a DIY project after watching home improvement shows on HGTV, videos on YouTube or pictorial instructions on Pinterest. These resources are increasingly popular among DIY junkies and are being tapped into for home renovation and upgrade projects. It can turn the average person into a handyman or a tradesman, not to mention, it means big savings.

Benefits

Do you have a long list of home renovations and upgrades AND you’re on a tight budget? DIY projects may just be the solution you have been looking for. While there is no feeling that can compensate for the sense of fulfilment that comes with doing it yourself, some of the financial benefits of a DIY project are:

1. To save money where possible as the cost of materials for home improvement projects is usually high.
2. It can help to preserve the value of your home especially if you may have plans to sell it.
3. Satisfaction is guaranteed without having to pay exorbitant fees and as a plus, you get exactly what you want once executed properly.
4. These projects are an innovative way to get the entire family involved while eliminating the cost for contracted workers.
5. Homeowners become motivated to learn a trade thus are more hands-on, which can be used as a means of possibly earning a second income.

Disadvantages

Prioritizing your home improvement projects based solely on your budget can sometimes lead to some poor choices, one of which may be opting to do it yourself. Here are some financial reasons why it may not be such a good idea to do it yourself:

1. The cost to repair or redo can be exponentially higher as compared to hiring a professional.
2. Purchasing specialized tools for the job can prove to be an expensive investment.
3. Contractors often benefit from discounts and deals on materials, which may not be available to a regular customer.
4. Procuring the wrong type of materials or subpar materials can result in unexpected cost overruns.

Financial tips to better manage your DIY project

Here are a few useful tips:

1. Financial planning for your DIY projects is a must! Staying within your budget and knowing when to spend and how much to spend is key. Identifying your source of funds and establishing your allocation for the project/s will assist you to determine the scope of the project and how much you can afford to spend.

2. Prioritize your projects. If you are strapped for cash, undertaking high priority projects based on need rather than want can help you to make that decision.

3. Research, research, research! Let how-to tutorials be your best friend. Knowledge is power, which can save you money and limits or prevents possible renovation “boo boos”.

4. Capitalize on savings and deals on materials and equipment. Saving a dollar or two is always a good thing. It may seem miniscule, however savings do add up.

5. Plan your next DIY project carefully. Setting realistic short-term and long-term goals is of paramount importance. Planning is always a good practice as you will know exactly what you are getting into, especially the estimated cost to complete the project.

6. Do not take on upgrades and renovation projects that you are uncertain about. Ask questions or refer to point number 3, or simply leave it to the professional. Your pocket will thank you later.

7. Expect the unexpected. Including a contingency fee in your overall budget is recommended as this will cover the unexpected, and we all know how these can pop up.

8. There is nothing wrong with saving up until you can afford it. Starting a project without the necessary financial resources may not be the best choice as you can be left with an uncompleted project.

Although our main objective may be to save money in these tough economic times, we have to be prudent about our cost cutting measures.