In this article, we help you understand how you feel about your budget, and explain how the relationship between your feelings and your budget will inform your decisions. This is a companion article to “How To Manage Your Renovation Budget” and “How To Manage Your Renovation Costs“
You will ease the stress of your budgeting decisions when you integrate how you prioritize and make decisions into the list of what you want, and how much you want to spend.
At AKA, we have found that our clients fall into two types of budget personalities: “Budget-Oriented” and “Value-Oriented.” Both are valid and not mutually exclusive. Knowing which description fits you the best will help you enjoy a good, and delightful, gut renovation.
Pro Tip: You may learn that your budget personality is not what you thought it would be, and that’s ok – make sure to tell your collaborators!
At AKA, our budget-oriented clients have a defined dollar amount that they will stick to, and they will economize or make tradeoffs to stay within their construction budget. The budget is king. The client’s discipline is not aspirational; it is real.
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The tradeoffs are real, too. Frequently, budget-oriented clients have a focused and limited area they want to renovate. They listen to our advice on how to get the most for their money. Often, these clients view their homes as an investment first, with an eye to changing markets, opportunities, needs, or an eventual sale. Even without these downstream considerations, many other budget-oriented clients have a saving strategy that allows only a finite amount of money for the renovation.
Success requires that budget-oriented clients clearly communicate their goals before the project begins. This allows AKA to transform their home within a defined budget.
We help our clients:
Our value-oriented clients have an open-ended budget or one with wiggle room. These clients know at the outset how much they want to spend. And they realize that they may decide to make some discretionary additions to their larger complete renovation along the way. They are okay with adjusting the project budget accordingly.
For the value-oriented, design is a learning experience, and they have the financial cushion to spend a little more if it will enhance their satisfaction. When clients can add an extra feature and or improve their light, views, or space, they understand that the total cost now is less than it would be if that element was done at a later date. The value of the money spent improves because they can take advantage of economies of scale; the financial cushion to spend more gives them access to efficiencies and synergies that amortize the existing project set-up costs.
Success requires that the value-oriented client first communicate what they want to accomplish and articulate how open they are to exploring options. This allows us to accompany them on a learning journey.
With these clients, AKA strives to:
You will not be graded! Just answer Yes or No.
If you answered Yes to 2, 4, 5, you favor a Value-Oriented option.
If you answered Yes to 1, 3, 5, you favor a Budget-Oriented option.
Read our companion articles “How To Manage Your Renovation Budget” and “How To Manage Your Renovation Costs“
Are there construction-cost-management strategies you want to share? Add them in the comments below! Do you have other questions about how to manage your construction costs? Contact us, and we may include the answer in a future article!
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