Budget Decorating & Home Improvement Financing

If you're planning to spend more than a couple hundred dollars, you might want to make a budget plan!

This information is offered as a guideline only. Read it very carefully and use it as a basis in determining what your own needs are.

Financial considerations for your decorating project.

When I say budgeting your decorating project, I don't necessarily mean penny pinching. I simply mean determining how much you want to spend, what you are going to spend it on, and where the money's going to come from.

Budgeting for a specific amount of dollars is tough. But trust me, it'll make your life easier whether you want to spend $200 or $50,000. If you don't set a budget in the beginning, you can end up with a 'Money Pit'. (Did you see that movie, the Money Pit?)

 

It doesn't matter if you are decorating your dorm room at college, or your master bedroom in your $500,000 home. It's all relative! Knowing how much you want to spend helps you determine how much you'll spend on specific items.

Insurance

Have you considered insurance for your home improvement or remodeling project, or for the completed addition after the fact? Read information and tips regarding Homeowner's Insurance for home improvement projects and payment protection advice for your home improvement loan. Of course you'll want to call your existing insurance holder to see what they offer too.

There are basically two ways to go about it. a) You tell yourself you have a certain number of dollars to spend and you go from there. (b) You start with a room plan, deciding what stays, what goes, what you want to add and estimate how much it will cost.

Working within a budget may sound depressing, but it doesn't have to be. Budgeting is simply a part of the planning process. All it takes is a little planning and responsible shopping and you can have a home to be proud of without having to take the rest of your life to pay for it!

To Get A Loan or Not To Get A Loan:

Financing debt can be a hole that's hard to climb out of, so I don't recommend it. But let's face it, there are times we need it now, and there are times we want it now and we finance.

The expense may go on a credit card, a signature loan, a home equity loan or a multitude of other forms of financing. Before you do anything, check out Suze Orman's site for debt management information.

If your budget determines that you must finance, my favorite form of financing is the no interest option. Read the small print to determine the details. The major big box stores usually offer this on a daily basis. Depending on their current promotions, you can usually get it for 6 or 12 or even 18 months.

Likewise, your existing credit cards that you have may offer you a transfer option at a very low percent or no interest. But BEWARE! Read the agreement carefully. Most often you'll have to pay a "balance transfer" fee, which usually runs from 3% and up.

However, if they offer you this reduced rate for a long enough term, that balance trasnfer fee could be worth it. So get out your calculator and figure it up.

But if you use any of these options, make yourself a budget and make payments large enough to get that balance paid off before the end of the promotion.

It may be your best intentions of having the money to pay it off by the due date, but frequently that just doesn't happen. And that is exactly what the finance company is counting on. Because if it's not paid by the due date, or end of offer date, they slap you with all that back interest, and then start charging you monthly accordingly.

You could always have a yard or garage sale to make some decorating money. What do you have that you could part with? How about all that stuff that you decided you want to replace? Can you live without it for a while?

Hiring A Decorator?

Even if you work with a designer or decorator, you'll still have options a & b to pick from.

You'll either need to tell them you have X number of dollars to spend, or after they've designed your room, they'll tell you what it's going to cost. So you just as well be prepared.

Don't buy until you need it. The only reason to ignore that piece of advise, is if you find something on your list that is such a good price you can't pass it up. But if you're having to charge it, you're not saving as much so it may not be worth it.

I know, it's a lot to think about. But that's the whole point. I want you to think first, plan second, and act last. But most of all, enjoy the process!