How to Budget for a Kitchen Remodel

A kitchen remodel can be quite the undertaking. You may only be updating a few things - the cabinets and countertops perhaps - or taking on the entire room floor to ceiling. Either way, you'll no doubt agree it's a time investment. But it can also be a colossal money investment, especially if you don't plan before you start knocking down walls. Budgeting in general is not always easy, and remodels have a way of running over budget. But with a little planning and priority setting, you can effectively budget for your renovation.

Knowing How Much You Can Spend
First, you need to know how much you have to spend on the remodel. You can find a helpful budget worksheet on The National Association of the Remodeling Industry's website. Some questions to ask include: How long do I plan living in this house? What debts do I have? What is my gross monthly income? It's especially important to look at how long you intend to live in your house. That will largely determine what you put into your remodel. Having the overall number that you have to work with will help you move on to choosing what to remodel.

What Should You Spend It On?
Now that you know how much you can spend, what do you spend it on? If you're giving your kitchen a minor makeover, like adding a sophisticated countertop (like granite), a new paint job, and new appliances, you won't have much to consider. If, however, you plan on gutting it and starting over, balancing your money will be more complicated. So unless you have unlimited funds, this means some picking and choosing is in order.

One way to know where your money should go is to decide what means the most to you. Do you have your heart set on all granite countertops or stainless steel appliances? Then maybe that's what you should focus on, compromising or scaling down on other features like intricate crown moldings. Think about the things that are more permanent (cabinets and tile) that you won't be replacing soon, if ever. It may be worth investing a little more in those things.

Some recommend budgeting about one-third for labor costs. Of course, you may be able to save some money in this department by enlisting the skills of family and friends - or even yourself. By doing some of the labor on your own, even just the demolition (removing old countertops, for instance), you may save money you can put toward other features of your kitchen.

Always leave a financial pillow. Even with excellent planning, you may experience the unexpected. Especially with older homes, problems may arise during demolition, or you may have to make changes in what you plan to buy. Whatever may turn up, leave enough space in your budget to handle unexpected payouts.

So when planning your budget for your future kitchen remodel:

1. Decide how much you have to spend on the renovation.
2. Choose what you should invest the most in and scale back on secondary features.
3. Save a little money by handling demolition yourself and recruiting family and friends to help
with labor.
4. Budget for unexpected changes in your renovation plans.

A little budget planning will go a long way toward a smoother kitchen remodel.