When you build a home, you are going to want to create a budget so that you can stick to it as closely as possible, and stay on top of things. This will help you save money, and will help you come in under budget and not have to go to your lender asking for more money to be able to finish your house. You do not want to have to stop construction because you run out of money because you did not create a good enough budget. So, create a spreadsheet budget!
Creating a spreadsheet budget is such a smart idea. Spreadsheet budgeting is going to save you a lot of money. It does a few things for you: It allows you to easily see what your budget is for each item, and if you use a computer spreadsheet, it organizes items in rows and columns, and automatically calculates numbers for you, and can tell you what the totals will be. This is going to keep you saving a lot of money because you will see how much each small item you save on adds up to be tons and tons and tons of savings.
A spreadsheet budget allows you to actually see your savings. This is very motivational. Think of it this way, the more you save, the more equity you have in your house when it is finished. A spreadsheet budget is great for this because you watch your equity grow on the computer screen as you find bargains and better deals. When you make a change to your spreadsheet budget, the whole calculation will change instantly.
Take some time and play around with your spreadsheet budget. Play around with the numbers to see how much a little here and there can help you to save. Also, make sure you play around and see what happens to your equity when you go over budget. Just as you can see how going under on budget here and there can really add up, you will also see how going over on budget is going to cost you a bunch, and might motivate you to look harder, and negotiate tougher. Spreadsheet budgeting is going to be your best friend when you are trying to save money building your house, and when you are struggling to stay on budget.
The spreadsheet budget is going to be more than just your friend; it is going to be your window into what your possibilities are. Each time you purchase something, you can plug the numbers into your spreadsheet budget and see the effects instantly did your purchase make you more wealthy, or less? It will allow you to adjust what you spend elsewhere to stay on target if unexpected expenses come up (as they probably will, since they always do with construction projects).
A spreadsheet will save you money just for the mere fact that it will act as your budgeting tool, once you write it down you are more likely to actually stick to it, and it will act as a tracking tool as well. You will be able to track your actual expenses vs. your estimated expenses. It is like a check system that will help to keep you on track. Spreadsheet budgets help you see where you can spend a little more for upgrades, and where you need to cut back and look for a better bargain so that you can get yourself moving in the right direction. You will save big from the organization it provides, from the motivation it provides, and from the fact that you will know how your money, that hard earned and hard to come by money, is being spent exactly!
If you decide to go with a builder, most builders will give you a spreadsheet or a type of form with everything budgeted. Some of them will give you a section, like plumbing, with a budget for you to select the fixtures. If you go over the budget, you pay. If you go under, most builders will give you a credit. This is the best way for everyone to stay on track.
Information was taken from homebuildingremodeling.com
For all your real estate and building needs or questions, call Debbie at 830-833-4249 or 713-818-6658, or send an email to debbie@vallone realestate.net.