One of the most rewarding projects you can undertake is home improvement. It doesn’t need to be a big change, either—even fixing a creaky step or replacing attic insulation can have a huge impact on your quality of life. But the best and most satisfying projects are generally ones that add significant value of your home.
Additional rooms, new kitchens, you name it!
Of course, these projects are also some of the most expensive.
This guide will break down 5 amazing ways to finance your next home improvement project without going broke in the process.
#1 See What Family and Friends Can Do for You
Family is essential.
Not only are they the ones who make your home special, they can also be the ones who help you build or finance your new improvements. The same goes for your closest circle of friends.
Maintaining your immediate family finances can be tricky, but it’s extremely important to help out your relatives when times are tough for them. Why? When the tables turn, and you could use help funding your new project, they’re the first people you should ask.
#2 Find a Smart Loan
If you’re not able to borrow from a family member or close friend, all hope is not lost. If you have a strong credit score, you can find a great loan that you can pay back in no time.
Some important things to look out for when shopping around different banks and lenders:
- Interest rate – The lower the APR, the better! Interest is essentially the cost of a loan.
- Grace period – Many loans have an introductory period in which very little or no interest is accrued. Time it right, and it’s as good as getting free money!
- Payment schedule – Ideally, you should look for a loan with a repayment schedule that fits your financial future. A lower rate over a shorter period might make more sense, or a higher interest rate over more time might suit your circumstances best.
A premium loan from a quality lender is one of the best and easiest ways to fund any project. Whether you’re looking to simply refurnish or do major renovations, credit is your best friend.
#3 Use Your Home as Collateral
One of the best and most powerful kinds of loans you can get is a reverse mortgage. This option is available for older adults who live in their properties. You leverage the value of your home for immediate funding at competitive rates often not seen in other financial options.
An Arizona reverse mortgage has looser regulations and can be an incredible way to turn your hard-earned equity into immediate cash funds.
#4 Look for Other Areas to Save
Another strategy for financing your home improvement product involves smart budgeting and looking for any possible way you can trim your spending.
Small changes here and there can make a big difference!
Think about all the expenses you field in a given month. Do you really need every single streaming service you subscribe to? Would it kill you to hold back on the gourmet lobster? Is your expensive SUV really necessary, or would a smaller car do the trick just as well?
When push comes to shove, smart financial planning is all about making tough decisions.
#5 Do as Much as You Can Yourself
Finally, the last tip is trying to take on as much of the work as you can with your own hands. In any kind of construction or development project, materials are far from the only expense.
You’re also paying a contractor or company for:
- Planning and design
- Management
- Daily labor
Why not cut out all three of these costs and do the job yourself? With the sheer amount of DIY assistance available online, all it takes is a bit of research and some elbow grease.
Renovate Today Without Forsaking Tomorrow
With all these tips in mind, it’s time to get out there and turn your home improvement fantasy into a reality. Whatever source of funding you use, it’s important to prioritize what matters most. If you’re looking to save money, you’ll probably wind up cutting some corners (in an effective way).
Having a solid plan is the best way to make sure you don’t cut the wrong ones.