Whether you rent or own your home, improvements are something everyone has to deal with from time to time.
As housing costs increase in many cities, budgeting for renovations and home improvements can be more difficult.
In this post, I’ll share 6 things you can do to reduce maintenance costs when improving your home.
Get Tax Credit For Making Your Home Energy Efficient
Did you know that you can get a tax credit for certain home improvements? Visit the Energystar.gov rel=”nofollow noopener” site to learn more tax credits for home improvements. Find information about ENERGY STAR certified products, rebates, and product details about appliances, building products, commercial equipment, lighting and fans, heating and cooling, office equipment, water heaters, and more. Turbotax also has great resources about energy tax credit and home improvements.
Focus On Things That Can Save You On The Long Run
Here are some ideas:
- Invest in a security system – A study found that 83% of burglars take an alarm system into consideration when determining whether or not to attempt a burglary. Investing in a security system could prevent your house from being a target and save you thousands of dollars.
- Get a smart thermostat – Another great investment for your home is a smart thermostat. A smart thermostat is more energy efficient than a regular thermostat. It can control the temperature in your residence and make it more comfortable.
- Install a fan in your ceiling – If you live in a climate where air conditioning is a necessity, consider investing in quality air conditioners. This can reduce your bill and can improve your quality of life.
- Invest in smart lighting – There are many lighting options that are energy efficient. Investing in the right lighting could save you money at the end of the year.
Focus on quality instead of price
While it may seem intuitive to buy the cheapest materials when renovating your home on a budget, this strategy can cost you more in the long run. Price is often correlated with quality. While it may be tempting to choose the item with the lowest price, this option will not be economical if you need to replace it again soon afterward.
Do the labor yourself
You may not feel comfortable doing certain technical repairments, but doing part of the labor yourself can save you hundreds of dollars. Painting, for example, can be expensive if you hire someone, but it’s really easy to do. Save your money for electricians and plumbers.
Take advantage of coupons and cashback
Get materials and appliance with coupons and cashback. If you use coupons and cashback, you know how this can add up and make a difference in savings. Lemoney offers up to 10% cashback at The Home Depot, up to 10% cashback at Sears, and up to 14% at Ace Hardware
Save money on your mortgage
Saving money for home improvements is the first step to turning your house into a home. While this last tip is not something that’ll reduce your home improvement costs per se, it can reduce the costs associated with your residence. You’ll have more money left to invest in maintenance and improvements for your place if you save on your mortgage. There are many ways you can save money on your mortgage without refinancing. Here are my best tips:
- Select a 15-year mortgage – Although your monthly payments will be higher, you’ll pay your balance faster, which will reduce the amount of interest you pay over time.
- Make extra payments – Making even small extra payments every month can reduce the time that you’re paying for your home. This is also a great tip for credit card debt and student loans. Keep in mind that you must instruct your lender that you want to apply these payments towards your principal. Otherwise, the bank may apply this payment towards interest, and this strategy wouldn’t work.
We always stress the importance of budgeting on this blog. Budgeting for home improvements is as important as ever, so plan accordingly.
While rising housing costs can make it more difficult to invest in home improvements and renovations, using cashback, doing the work yourself, and getting a tax credit are great ideas to save on renovations.