Eager to spruce up your home but feeling lost? Dive into this guide to ensure you're not skipping a beat!

Where To Start?

With home renovating, there are multiple ways to carry out the renovation process but this roadmap is specific to how I like to carry out a home renovation. Hopefully, this detailed list can help you organize the journey of your next renovation but to begin, here is where I normally start.

Planning. Build a Plan and Nail Down a Budget.

Build a Detailed Home Improvement Project Plan

The first step in home remodeling is to develop a plan that clearly states the goal for your home renovation. A quick outline of the projects that need to be completed and their priorities.

Your project plan may include the following:

At this point in planning a home renovation, be sure to do some initial investigation into local zoning regulations and permits. You want to make sure your neighborhood is zoned for your home renovations and you need to find out if you’ll need a permit. If you are completing a project that will change the structure of your home or the use of a room, it is likely that you'lle need a permit. Because permits can take time, it's good to know beforehand if you'll likely need one but wait to apply for the permit once you’ve hired a team and have built a project timeline.

You may not always have the luxury of time on your hands but this type of project planning is better to do 6-12 months before your actual project.

Set a Project Budget

The next step in planning a home renovation is to determining your budget and any financing you may need. Your budget will include costs for permits, building materials, labor costs and the cost of interior styling.

Some of these costs may not always be known up front, but do your best to recognize any costs that may be associated with your project.

Steps to Building your Reno Budget:

  • Determine a Total Renovation Budget and Finalize Financing if needed. As a rule of thumb, I always set aside at least 10% of my budget for unexpected costs. (If your total budget is $80,000, set aside $8,000 for unexpected expenses)
  • Request Cost Estimates from Professionals. - The best way to secure pricing is going straight to the professionals. Even if you're tackling a home renovation yourself, there may be many things that you may need to call in a professional to help (electrical work, plumbing, HVAC, etc.)

Here are a few things to consider when choosing your contractors other than pricing:

  • Years of Experience: A contractor who’s been in  business longer is usually a safer bet.
  • Contracting license: If required in your state, make sure your contractor has the proper license.
  • References: Request references from your contractor and call them to confirm.
  • Payment schedule: Try to stay clear from contractors that require all cost up-front. Be sure to discuss payment terms before the project begins.

 In some cases, it’s better to spend a little extra money to make sure you are comfortable with the contractor you're working with.

  • Price out all Required Materials - Again, you may not have pricing for every single thing, but try to price out any materials you think you may need for each individual project.

Utilize this Project Budget Template.pdf to help you figure out a budget for each space.

If your cost estimates do not fit in your budget, eliminate projects that are a lower priority. Don't be afraid to request cost estimates from multiple contractors to find the best option for your budget. But beware, the cheapest cost doesn't always imply the best work, so try and get some referral's before committing to a contractor.

The Cleanup Process: Plan Ahead for Waste Removal


Waste removal is often a budget item that is forgotten but very important. If you're tackling a huge renovation, it is likely that you will have a lot of waste in the way. Include the cost of getting rid of debris in your budget and make a plan for how you will get rid of the construction debris.

If you are removing construction debris on your own, do your research ahead of time to decide how you will remove the debris, whether that may be, taking the debris to the landfill on your own, ordering a dumpster, etc.

If you are working with a contractor, discuss with them who is responsible for finding a waste removal solution for construction debris, and what the cost may be if it falls on you.

How to Budget and Save for a Home Renovation

When it comes to home improvement projects, even the most frugal homeowner can get caught up in the excitement of choosing products or get blindsided by unexpected costs and in my experience, every home improvement project will cost more than you think. If you are planning an upcoming renovation, it is important to start thinking about how you can save up to pay for your reno. But if you are wanting to front your renovation with cash, first to make sure its the right fit for you:

Do you have enough in an Emergency Fund?

I would recommend not utilizing  your emergency fund to cover home renovation costs. Make sure you have at least 3-6 months’ worth of cash put aside for emergencies before you go dumping thousands of dollars on your home renovation. (If your monthly bills are $2,000 a month, try saving $6k to $12K for your emergency fund first.

Is your Debt Under Control? 

If your debt is out of control, it may be best to delay your project and pay off your debt first. Renovating your home can sound really fun, but you don't want the home renovation to create an even deeper hole. Be honest with yourself about where you are in that process. If you have a lot of high-interest debt, let the renovation be the motivation to pay it off!

If you've taken the time to build your emergency fund and have your debt under control, its time to start saving for that home renovation!

How Much Should I Save?

When determining how much you should save, make sure you know your overall budget and project timeline. How you decide to save money is entirely up to you but many homeowners have had success with setting aside a percentage of the expected renovation costs until they reach their budget goals.

Saving 5% to 15% every month is an ideal goal for saving for future projects.

Open up a Separate Account for your Renovations

Creating a savings accounts specifically for home renovation costs is a great way to keep track of your overall budget and helps you from wanting to dip into your emergency savings. Whether 5% or 10%, you can send a percentage of your income directly into this account to help finance the renovation.

  • Look for creative ways to save money so you can utilize those funds for your home improvement savings plan.

Pros and Cons to Saving for a Reno

Pros

  • You don't have to pay back any money
  • Credit Score won't be affected
  • No High Accruing Interest

Cons

  • Timing may be delayed
  • Project may cost more than expected

Home Renovation Financing Options

To determine whether financing is the right fit, consider the following:

- What is your monthly budget and are you able to make another payment?
- Will the project increase the value of your home?
- What is your Project Timeline?

If you are in good financial health and you are confident that the project will boost your home’s value, the extra cost of financing could be worth it. Before you pursue financing, be sure you have a good understanding of your project's total cost.

Good Article https://www.bankrate.com/loans/home-improvement/how-to-pay-for-home-improvements/

Credit Card

If you can take advantage of a no-interest or low-interest promotion, applying for a credit card may be a viable option to finance your home renovation.

Home Equity Line of Credit

Sometimes people will take out a loan out against their own home to finance their renovations. I wouldn't suggest this if you plan on moving soon.

Home Remodel Loan - There are different loans out there specifically for remodeling homes.

Personal Loan/Discover Personal Loans - Many banks offer personal loans that you can use to fund your home renovation. Discover is one in particular I have used. Here are some details on it below.


  • No Up-front fees: No Origination Fees, Closing Fees or Prepayment Penalties
  • Flexible Repayment Terms and Fixed Rates (Terms from 36 to 84 months, Rates from 5.99% to 24.99% APR)
  • Get Funds Fast: Funds sent directly to your creditors in as little as one business day after acceptance.

This may seem like a lot, but if you've made it through, you're one step closer to making your home into the place you want it to be. Thanks for reading!

July 12, 2025 — Ashley Basnight