How to Determine a Budget for Your Interior Design Renovation

When it comes to budgeting, we can all experience and even suffer a bit from anxiety. Will there be an over-run? How much money is actually enough? What if we run out of funds before completion?  You will be tempted and heavily influenced to go for extra add-ons and the best way to shield yourself from ending up with a monster financial burden is to give yourself a budget, and stick to it. This secures the boundaries and helps your team perform and focus on what is important.

Set your budget as a first priority

When you are engaging a professional to plan your interior design, you need to let them know your realistic budget. (And be honest with it!) Otherwise it’s a bit like having a personal trainer and not letting them know what your physical limitations are.

Identify what you are comfortable with and allow a slush fund for those extra tap fittings that caught your eyes along the way, but had not factored in, or the electrical wiring that you didn’t realize you had to redo. Consider the value you will be adding, but be careful not to over capitalize. Factor in things like the sort of neighborhood you live in, complexity of the job, and the level of finishing and workmanship you wish to achieve.

Be honest with your interior designer so that they can get you the most value for your cash. Remember they want to have the best results to add to their own portfolio, so it is in everybody’s best interests to end up with something that you are happy with. Ask for their advice and guidance for your particular needs as they have the experience and trade knowledge of past projects to base pricing on.

Set Yourself a Realistic Budget

TV shows and glossy magazines can give us a false sense of what things actually cost. As much as we love to get ideas from them, their budgets in reality are a far cry from the real deal as they have special rates and often offer product exposure as payment for services and products. By keeping level-headed on price, speed, and quality you will find that you have far more control with outcomes.

Once your budget is agreed on, subtract 10% and mark this aside as your slush fund. Pricing varies in construction and depending on the amount of people you have involved, communication can breakdown at times and a 10% contingency will help avoid a shortfall for unforeseen expenses. Just remember, as tempting as it will be, this should not be used to go into your main budget, it is there for emergencies and as a safety net.

Educate Yourself on Costings

There are hard costs and soft costs with construction. A hard cost includes the cost of materials and fixtures which are actually required. A soft cost includes fees for permits, designers, and any additional consultants such as a project manager that might need to be commissioned for the job.

If you gain a good solid understanding of what you are in for from the beginning, you will avoid the need for potentially uncomfortable conversations. Set out your financial plan early and sit back and enjoy your project.