How To Budget & Finance Your Home Improvement Project

January 13, 2022

How To Budget & Finance Your Home Improvement Project

Written by Ilona Zackery for

Although home improvement projects are exciting, they can also be financially demanding. There are a lot of expenses involved in renovating even a small part of your house, so planning for an upgrade of any kind requires some careful budgeting.

Before you pick up those paint swatches, here's what you need to know about budgeting for and financing your home improvement project.


Planning for any kind of project takes a lot of time and effort, but careful planning is important when doing a new addition or fixer-upper. Homeowners spend an average of $7,000 on home renovations per year, sometimes even more. Below are a few tips for making sure you aren't blindsided by the bill on your renovation.

Take it a step at a time

Remodeling costs can get steep, and many first-time homeowners may find themselves biting off more than they can chew when it comes to a renovation project.

Try to renovate a room at a time so that you aren't swamped with material costs all at once. Going slowly also gives you an opportunity to live with the changes, and see if you're happy with where they're going.

See what you can do yourself

Any home improvement project, no matter how big or small, is going to cost you. While there are certain things that should be left to professionals, do a deep dive and see whether there are some parts of the process you can do by yourself. That's sure to help cut down on costs— as long as your skill level can handle it.

Prepare for big costs

Even if you're just doing one room at a time, you should be prepared to shell out big for your home improvement project. Average costs for renovating a kitchen can reach $150 per square foot, sometimes even more. Check out estimates on costs to renovate in your area, and use that information to build your budget. Don't forget to add a little extra, just in case.


So you've got your budget set out for your renovations, and are ready to get everything started. However, maybe you don't have all that cash on hand, or you simply want to take it slow so you can spend normally on other aspects of daily life. The solution? Look for financing. Here are a few tips on how.

Get a personal loan

One of the most common solutions to financing for a home improvement project is taking out a personal loan. Personal loans can be used for pretty much anything, including home renovations, and are generally easy to apply for.

If you're worried about how much you'll end up paying, a personal loan calculator online will help you to define things more clearly. Specifically, this sort of tool will enable you to plot out the projected interest on your loan, which will make it easier for you to budget your payments.

Try renovation financing

You can also opt to try for renovation financing. An FHA 203(k) loan is a government-insured mortgage meant for home purchase and home renovation.

These loans allow lower-income households to improve and update their properties. There are different types of FHA 203(k) loans available, so make sure to do your reading and find the one that best fits what you have in mind.

Look for creative financing options

There are some elements of your home improvement project that you'll want to invest in. These items can be a bit of a splurge, but they add a special charm to your home that simply can't be replicated. Like a Murphy Door that adds functionality to any doorway, while secretly hiding the space behind.

These well-crafted, furniture-quality doors may seem out of reach but Affirm’s easy to afford installments make your dream door possible. Visit us online to find the perfect hidden door solutions for your next renovation project.

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