Embarking on a home improvement project can be an exciting and rewarding experience, but it’s important to keep track of your expenses to avoid overspending.
Here’s how to keep your home improvement project on budget:
1. Keep all of your receipts in one place
To ensure that you have a complete record of your expenses, keep all of your receipts in one location. This could be a folder, envelope, or even a digital folder on your computer or phone.
Label each receipt with a brief description of the purchase, such as “paint supplies” or “light fixtures.”
2. Organize your estimates and price sheets
If you’ve received estimates or price sheets from contractors or suppliers, keep them organized in a separate folder. This will allow you to compare prices and make informed decisions about which vendors to work with.
It’s also a good record in case you have other home improvement projects in mind.
Pro tip: Once the project is finished, add notes about your experience (both good and bad) with the vendors and/or products you used.
3. Create a spreadsheet to track expenses
Consider creating a spreadsheet to track your expenses. This can include columns for the date, vendor, description, category (e.g. materials, labor, permits), and amount.
You can update the spreadsheet as you receive new receipts or estimates and use it to monitor your spending throughout the project.
4. Routinely compare your expenses to the budget you’ve set
To stay on top of your expenses, make a habit of checking your receipts and spreadsheet regularly. This will help you catch any potential overspending early on and make adjustments to stay on track.
5. Take time to review your plan as you go
Periodically review your budget and plan to ensure that you’ll have the funds to finish your project. If you notice that you’re overspending in a certain category, look for ways to cut costs or adjust your plans to stay within your budget.
In summary, keep all of your receipts and paperwork in a central location to help you find everything you need to manage your home improvement project costs more effectively.