Home renovations can be pretty pricey and can almost seem like something impossible to achieve. If you’re preparing to do some remodeling to help sell your home, or if you’d like to make changes for your comfort, there are a few solutions you can consider for funding. With a good plan in place, you’ll have a better idea of what options will help you fund your project.

Find a Side Gig

A side job can help you earn the extra money to pay for your renovation. It may take some time to reach your money goal, but this option allows you to pay for the renovation outright so that you don’t have any lingering costs associated with it once everything is said and done. Depending on how much extra time you have, you can choose to work several side hustles to reach your goal faster. Some ideas for second jobs include freelance writing, dog walking, babysitting, house cleaning, and taking surveys online.

It may be some hard work for a while, but the result will be completely worth it. Your plan should be to put 100 percent of any money earned from your side jobs into a separate savings account, so it doesn’t get touched for anything else.

Create a Budget

A household budget is one of the most effective ways to see the money earned versus the money spent. It could very well be possible that you can have more money left over each payday if you plan accordingly. You should take the time to determine the average costs for your upcoming project, whether you’re going to do it yourself, and get several quotes from reputable contractors, such as Phoenix insulation installation.

Sometimes people spend more than they realize on extra things they don’t need, such as a cup of coffee on the way to work or ordering lunch each day. Everything does add up no matter how small the cost is. When you have all your household expenses written out for you, you’ll get a better understanding of where you can cut some corners to help save for your renovation.

Home Equity Loan

A home equity loan is another way that people obtain the funds to do renovations around their house. This type of loan is also known as a second mortgage, and it allows homeowners to borrow around 80 to 85 percent of the home’s value and pay it back monthly. Some of the biggest downsides to this type of loan include higher interest rates, and you have to use your house as collateral. If you end up defaulting on it, the lender will be able to take possession of your home.

Credit Cards

Some people choose to use a credit card to pay for their renovation and just pay it down monthly. There are a lot of options when it comes to credit cards, but one thing you want to pay the most attention to is the interest rates associated with them so you can have a better understanding of how much you’ll be paying back.

Another thing to consider is any type of rewards associated with using the card. Some credit card options will offer you points for spending a certain amount of money, and you can use those towards something else. If you plan on doing the home renovations yourself, you can also choose to look into getting a credit card for the home improvement store closest to you, such as Lowe’s and Home Depot.

Personal Loan

Personal loans are also good options for those who need to fund an upcoming renovation. You can usually determine roughly how much your monthly payments would be with online calculators. You just enter how much you need to borrow and your credit score, and you can determine if those monthly payments are affordable or not.

Funding a home remodel is not a one-size-fits-all solution. You have to look at the available options to determine what makes the most sense. If you’re going to get a loan or use a credit card, it’s important to factor in how much your monthly payments will be and if they fit into your budget.