5 ways to save for your renovation

Ignite your inner Tim ‘the Tool Man’ Taylor and become a home renovation pro.

There comes a time where you just can’t handle your pokey kitchen any more. Or you want to knock down some internal walls and create an open-living dream. And with the right savings plan and a clear budget, you can turn that ren-no into a ren-yes. Here’s how:

1. Set a budget

First and foremost, before you start buying new tapware and fancy tiles, you’ll need to set a budget. This will give you an idea of how much you need to save. A full bathroom renovation can cost up to $20,000, so you’ll need to be realistic about what’s a ‘must-have’ and what’s a ‘nice to have’.

The size of your renovation will dictate your budget (new bedroom versus a full house makeover). But here are things to consider:

• Any permits (especially for external works or heritage listed properties)
• The cost of a plumber/electrician/carpenter/painter
• Demolition and removal of old materials
• Skip rental (for throwing out large and heavy rubbish)
• New fittings (taps, handles, lights)
• New appliances
• Paint
• Floor and wall tiles
• Curtains and blinds
• Temporary accommodation if you need to vacate for a few days or weeks

Once you have your budget, add a 10% buffer – because not everything goes to plan and you don’t know what’s lurking inside your walls.

It’s also recommended you get at least two quotes before choosing the right person or the job. Use Google and Yelp to source companies, and ask friends and family for recommendations.

2. Be realistic

Gold tapware, chandeliers and a sunken bath may the dream, but you’ve got to be realistic. Firstly, how practical are they? You’re renovating a home, not a hotel. Secondly, exclusive and designer-made accessories and fittings can overstretch your budget.

Being realistic doesn’t mean being boring either. There are lots of clever ways and cost-effective suppliers to kit out your home. There are clearance centres that sell factory seconds and surplus stock, Bunnings (and who doesn’t love a sausage in bread?) and IKEA.

Plus, if you keep the renovation simple, you can deck it out with fun furnishings from discounted department stores including Kmart, Big W and Target.

3. Have a garage sale

It may be time to have a big clean out, Marie Kondo style. Hosting a garage sale is a great way to make some extra coin.

Go through every room (even those kitchen drawers) and sift through what you need, what you love and what’s completely redundant – do you really need that lava lamp? Also, furniture and knick-knacks that suit your home now, may not look so good post-renovation.

4. Take your time

Just like Rome, your renovation can’t be done in a day. So don’t feel you have to renovate every room at the same time. If you only have budget to redo the bathroom and not the kitchen as well, resist the temptation to overstretch your budget.

Also, if you’re not in a rush, you can save money on materials and appliances by waiting for sales. Major department stores (like Harvey Norman), lighting shops (such as Beacon), and plumbing and tiles stores regularly have sales which can help you stay under budget.

5. Open a dedicated savings account.

When it comes to savings, out of sight is definitely out of mind. Opening a dedicated savings account is an easy way to put your money away. And if you choose wisely, you could enjoy some bonus interest too.

Using a savings account can also help you avoid racking up debt. It shows you exactly how much money you have so you clearly know how much you can spend. And because the money is yours, you won’t be charged any interest.

An Online Savings Account with ME has zero account-keeping fees, requires no minimum deposit and comes with a great interest rate.

Renovating your home is an exciting (and sometimes stressful) project. By laying down the foundations to your savings plan now, you can set a realistic budget and be better prepared for any financial obstacles.