If you own a home, chances are you’ve got a long list of renovations and upgrades you’d like to get done.<\/p>\n
Maybe you\u2019re thinking about making some changes that would make your home easier to sell, or perhaps you\u2019re ready to take the plunge and turn your current house into your dream home.<\/p>
\u201cYou may be ready to knock down walls, but is your budget ready?\u201d asked Thami Cele, Absa\u2019s head of savings and investments.<\/p>\n
\u201cHome renovations and improvements are a costly goal, which often take a while to reach, but if planned for properly, using savings as a tool, it can be done.\u201d<\/p>
Here are Cele\u2019s top seven tips on how to save for your home improvements:<\/p>\n
\u2022 Set up a designated savings account.<\/strong> A dedicated account will help you keep better track of your savings goals and progress, and will eliminate the temptation to dip into your savings for other expenses. While Absa does not have bespoke savings accounts for home renovations, there are plans that will help you reach your goal and keep you on track to making your dream home a reality.<\/p>\n \u2022 Formulate a savings strategy.<\/strong>\u00a0You can go about this in different ways, but a standard savings strategy would be to start by estimating the total cost of your home improvements, then divide that amount into realistic monthly savings over a set period of time. If for example, the total cost of your home improvements comes to R50 000, you can save R4 166 of your monthly earnings over a period of 12 months, to put towards your saving goal. That, or a basic saving of 10 per cent, or a smaller portion of your salary monthly can go far in realising your dreams. Before you know it you\u2019ll be building up a nice nest egg and can start picking out fixtures.<\/p>\n \u2022 Stash the cash and avoid the temptation to splurge.<\/strong> Commit your bonuses\u00a0or monetary gifts straight to your home improvement account.\u00a0You\u2019ll reach your goal much faster.<\/p>\n <\/p>\n ALSO READ:<\/span><\/p>\n Office security \u2013 new tech is making all the difference<\/a><\/p>\n Car coolant needs to be checked once a year \u2013 here\u2019s why\u2026<\/a><\/p>\n <\/p>\n \u2022 Trim the fat.<\/strong> Cutting unnecessary monthly expenses, is a great place to start, and has proven to work for many consumers who have managed to turn their dreams into reality. Cut back on your home\u2019s\u00a0energy usage, save money on utility bills, check with your paid for TV channels, mobile, internet and insurance service providers to see if there are lower-cost plans you can switch to, and deposit the difference in your home improvement account.<\/p>\n \u2022 Don\u2019t over capitalise.<\/strong> Anyone undertaking renovations needs to have a budget in place and stick to it. Unfortunately, one can get carried away and pay far more than originally planned.\u00a0It\u2019s frighteningly easy to\u00a0overspend on home improvements and many people don\u2019t realise this mistake until the time comes to sell their property, and they\u2019re unable to recoup all the money they\u2019ve put into a property.<\/p>\n \u2022 Don\u2019t underestimate costs involved.<\/strong> Cele stressed that one of the biggest mistakes homeowners make when renovating their homes is underestimating the costs involved in the project. Everything, including professional fees for architects, the cost of drawing up new plans, contractor costs as well as the actual cost of any new fixtures and materials needs to be factored into the price of the improvement,.<\/p>\n \u2022 Do-It-Yourself (DIY).<\/strong> Finally, while you\u2019re saving for your home improvement project, take time to learn some DIY skills that you can develop to help save money on contractors. For example, you could do the painting instead of hiring a professional painter for your project, or you could learn to install tiles. Choose something that interests you, and you might just find a new hobby, in addition to saving.<\/p>\n With the increased VAT in 2018, as well as the overall increase in modern day living expenses, the need for consumers to save is at an all-time high.<\/p>\n \u201cThat said, we still want to live our best lives, improve our homes, travel, eat out, and enjoy the basic pleasures of day to day living.<\/p>\n \u201cSaving for the big-ticket items like home improvements is a key way of ensuring you don\u2019t go into debt to achieve the kind of lifestyle you want,\u201d said Cele.<\/p>\n For more information, go to absa.co.za or call 0800 11 11 55.<\/p>\n \u00a0*The amounts quoted in this piece, are for illustration purposes only.<\/em><\/p>\n <\/p>\n Have a story?<\/strong><\/p>\n Contact the newsroom by emailing: Melissa Hart (Editor)\u00a0<\/span>germistoncitynews@caxton.co.za <\/a><\/strong>or Leigh Hodgson (News Editor)\u00a0<\/span>leighh@caxton.co.za<\/a>\u00a0<\/strong>or\u00a0Kgotsofalang Mashilo (journalist)\u00a0kgotsofalangm@caxton.co.za<\/strong><\/a><\/p>\n Remember to visit the Germiston City News on the following social media platforms:<\/p>\n Facebook<\/a><\/strong><\/p>\n Twitter<\/a><\/strong><\/p>\n Instagram<\/a><\/strong><\/p>\n YouTube\u00a0<\/a><\/strong><\/p>\n Or add the GCN on\u00a0<\/b><\/span>WhatsApp 079 406 1181<\/strong>\u00a0<\/span>or\u00a0BBM (BBM Pin: 7F102137)<\/strong>\u00a0<\/b><\/span>today, to get all the latest news.<\/p>\n Catch-up on more local news with our sister newspapers\u00a0<\/span>Bedfordview Edenvale News<\/a><\/strong>,\u00a0<\/span>Alberton Record<\/a><\/strong>\u00a0and\u00a0<\/span>Kempton Express<\/a><\/strong>.<\/p>\n