Budget Remodeling is a big undertaking. Whether you are a homeowner who is ready to transform your living space or an investor looking to maximize the return on your investment, planning and executing a remodel on time and within budget are critical factors.

How you finance your remodel is an important factor that will influence how much you can spend on the project. If you are paying cash or if your financing is from a lender, the first step in building your remodeling budget is to determine how much you can afford.

Affordable Remodeling Hacks to Refresh Your Home on a Budget

When you know how much you can spend on your remodel, you can then identify where to save and where to splurge. Generally speaking, labor costs will account for 20 to 35 percent of your total budget, and materials will account for another 15 to 20 percent. Labor can include fees for engineers, architects and plumbers and materials can include paint, knobs, faucets, tile, flooring, cabinetry and more. Don’t forget to factor in delivery and installation costs for your materials as well as any disposal or recycling fees that may be required.

It is also important to consider the potential tax deductible expenses for your remodel. These can be significant, particularly for major projects such as a kitchen or bathroom. You should always consult with your tax adviser prior to beginning any major home improvement or remodel project to be sure you understand the impact of any planned deductions on your income taxes.