Saving Money for Home Improvements

Saving money to remodel a kitchen can be difficult to do, but if it is something you truly want, the benefits will be worth it. While it is very rare that a kitchen renovation will add more value to a home than its cost, the ability to stay in a home instead of moving can be worth a lot more than the cost. For others, simply having a new kitchen is worth the pain of saving. Fortunately, saving for a kitchen remodel doesn’t necessarily mean making major sacrifices. Try these methods to save money. Over time, they can result in an individual or family accumulating the thousands of dollars needed for a remodel.

Deduct money from each paycheck and have it directly deposited into your savings account. By using direct deposit, you can have money placed into a bank account without ever having to see it in your checking account. This drastically lowers the chance of you spending it on something else. If possible, check with HR and see if they will be willing to deposit your paycheck into two accounts in order to make things simpler for you.

Save at least half of any money you get that you aren’t counting on as part of your typical income. This includes work bonuses, gifts, and even tax refunds. These are rarely part of anyone’s budgeted spending. Rather than spending all of it immediately, put at least half of it into your savings account as soon as you get the check. Spending the other half will let you feel like you got to do something fun with the money, and you’ll be able to contribute towards saving for the kitchen remodel.

Deposit your entire paycheck into your savings account, then transfer out what you need to pay bills on a case by case basis. This is a good way to rethink impulse purchases. By doing this, odds are you’ll leave some small amount of money in your savings account with each paycheck instead of rolling it into next month’s spending.

Deposit your spare change. Every time you spend cash, you probably get a little change. If you’re on a budget where you take out a set amount of cash every week, deposit everything left over into your savings account at the end of the week. While you will not be able to save thousands of dollars with this method, it can help you to reach smaller goals or get started with saving.

Reward yourself for saving. The problem with saving money is that it’s not that fun. Treat yourself to a meal out or new clothes whenever you hit a goal. As you collect estimates for the work, ask for them to be broken out into parts. Then, make the goal of saving for the deconstruction, parts, and labor separately. Of course, make sure you budget for any rewards.

Consider a no-interest loan. While this isn’t exactly saving, it can get you the kitchen you want while you work towards getting the money together. Keep in mind that most contractors will require a down payment, and make sure you have a plan to pay the minimum payments each month.