Lynda Moore says you need to start a renovation project with a realistic plan and financial resilience, because almost certainly you will bust the budget

The joys of house renovating!  Mum and I are in the throes of it as I write.  We currently have no bathroom, there’s a Portaloo in the garden, and the local campground has been kind enough to let us use the showers. 

As always when you start a renovation project you never quite know what is going to jump out and blow the budget.  In our case it was the original 1950’s wiring, which is going to need completely replacing.  That wasn’t on the list of ‘things we want to do’. 

We are also very lucky to have an amazing team of tradespeople who are guiding us through the various projects that we have on the go. Technically, I’m the project manager, but the team are doing a very fine job of managing it all themselves, so I’ll stick to my spreadsheet of costs, which is getting longer by the day!

Why do we do it? There are multiple reasons, for us, it’s refreshing an older property that we knew was tired when we purchased it, so we were prepared to spend some money on it.  Sometimes it’s easier to change what you already have rather than start over again with a new property (I really enjoy watching Love It or List it, the transformations are amazing). Sometimes we are just bored with our space and want to revamp it.

There seems to be something about renovating that brings out our inner spender. Maybe it’s the dream of a custom-built walk-in wardrobe or the thought of replacing those standard fixtures with something more… you. But before you give in to the urge to upgrade every corner, it’s important to keep an eye on your budget and allow for the hidden costs that pop up.

No matter where you start, your renovation can cost anywhere from $10,000 upwards, —no small sum! But that doesn’t mean your dream home is out of reach. You just need to be smart about where you spend your money.

Here are six tips to help you achieve your renovation goals without breaking the bank (or living on beans on toast afterwards).

1. Get real about the costs

We all love a good Pinterest scroll, but those picture-perfect spaces don’t come with price tags. Before you get too attached to a sleek Scandi living room or an ultra-modern kitchen, make sure you know what it will take to bring your vision to life.

Will you need custom cabinetry? Hidden wiring? Specialty finishes? Knowing the full picture upfront will help you avoid unexpected costs, especially if this is your first time navigating a renovation budget.

We have managed to recoup some of our costs, by selling the old stuff.  It might not be what we want anymore, but there are plenty of people out there who are really creative at upcycling the old and turning it into something new.  That’s a win for them and us.

2. Prepare for the unexpected

Even with a solid plan in place, things can still go sideways. Maybe you’re doing up a classic Kiwi villa, or perhaps you’ve just bought a brand-new townhouse. Either way, there’s always the chance you’ll run into something that wasn’t in the budget.

Homeowner stories are often filled with unexpected surprises. Needing to rewire the house, as we are doing, is not unusual.  Knocking out a wall can uncover a multitude of to does, that you didn’t know about.

3. Splurge wisely

Yes, this article is about avoiding overspending, but sometimes splurging in the right areas can save you in the long run. Durable materials and high-quality fixtures might cost more upfront, but they’ll save you money down the road by lasting longer and avoiding costly repairs.

Work out what is really important to you, that’s the area that you want to make sure you don’t have to cut back on.  What is not so important? This is where you may be able to save some costs. 

Using our bathroom reno as an example, Mum and I had no idea there was such a range of toilets, both in function and price!  We opted for a more standard cost effective one, to allow more budget for the shower which was very important to Mum.

Research, research and research again, either online or go and visit the various suppliers, get to know what works for you in terms of fit for purpose, and then look for some bargains, they are out there if you are prepared to put in some time to hunt them down.

4. Cut back on cosmetic works

Sure, detailed woodwork or a trendy tile pattern looks amazing, but these extras can add up fast if you’re on a tight budget. Instead of going all out, focus on smaller design details where they matter most.

Rather than covering an entire room with patterned tiles, why not create a feature wall or use it in just one area? This way, you get the impact without blowing your budget.

5. Keep what you can

It’s tempting to go for a total overhaul, but sometimes the smart move is to keep some of what’s already there. If you’ve got solid bones—like original flooring, decent cabinetry, or even fixtures that are still in good nick—consider working them into your new design rather than starting from scratch.

This is where your upcycling skills can come into play as well.

6. Get professional help

There’s a common misconception that hiring an interior designer will blow your budget. But in reality, a designer can help you save money. They know where to find cost-effective materials and how to stretch your dollar, plus they can help you avoid making costly mistakes. And, if like me, your not so great at colour, they can save you making a costly mistake by making sure your colour palette works and your kitchen cabinets aren’t going to clash with your flooring!

You set the budget, and they’ll make sure you stick to it, sourcing alternatives and suggesting creative solutions that won’t drain your bank account.

Don’t forget to listen to the tradespeople you are working with as well.   They are experts in their field and can give some great advice and tips on how to be effective with your budget to help you get the result you want. 

It doesn’t matter what your budget is; it is very likely that you will go over it.  It seems inevitable, so make sure you have enough in the kitty for those contingencies and overruns.

Take before and after photos, that way when you are looking at how much you have spent, you can look back at what you had then and what you have transformed it into and remind yourself that it was all worth it in the end.

I’d love to hear your renovation stories; how did you go with your budget?  What did you learn along the way?

*Lynda Moore is a Money Mentalist coach and New Zealand’s only certified New Money Story® mentor. Lynda helps you understand why you do the things you do with your money, when we all know we should spend less than we earn. You can contact her here.