Spring is finally here meaning time for renovations! Here are some tips on managing your renovation budget!

Renovating your home can be a great investment. Not only can a smart reno improve the overall value of your home, but at the end of it, you also get to live in a new and improved space that’s been custom made for you! But renovating can be expensive, and many people find that when they add up all the costs, they’ve spent more than they initially hoped or expected.

So how do you keep your costs under control? Well, there are a few ways to efficiently plan and budget for your renovation, and keep track of your costs along the way.

First, estimate how much your reno will cost you before starting out. To get a realistic gauge of your costs, go and price out some of the things you’re considering for your new space – like flooring options, appliances, and even accessories like faucets and door handles. And don’t forget to price out things like underpadding and scrap removal – many people miss budgeting for those less visible costs.

Once you’ve established a ballpark price tag, you can set up your budget. As your renovation gets under way, monitor your expenses and regularly compare them to what you’ve planned, to make sure you stay on track.

One suggestion is to set up your budget to include a reserve fund of at least 20% for unexpected costs. Even the most thorough budget can get derailed by hidden damages, plumbing issues or electrical surprises. A good tip is to keep this amount separate from the budget you share with your contractor. That way, it truly remains an emergency reserve.

And after all of this planning, renovations can still come in over budget. Sometimes it’s simply unavoidable. So it’s important to have a contingency plan – whether it’s savings you can draw from, or financing you set up with your bank. Whatever the case, be sure to have all of your funding in place before you start, so you have the money you need to finish the job.

Home renovations can be exciting, but also a little stressful. By properly planning out the financial side of your renovation, you’ll have one less thing to worry about. And, you can focus your efforts on say, choosing the right counter top… or maybe on trying to get your contractor to work just a little bit faster!

For more information, please visit the RBC Advice Centre!