Tips for renovating your kitchen on a budget

They say the kitchen is the heart of the home. So it’s not surprising that a kitchen remodel is one of the most expensive home refreshes you can do—and it can be one of the best projects for generating an eventual return on investment, per Investopedia.

Bankrate reports that remodeling your kitchen can cost as much as six figures, and even when remodeling on a budget, you can expect to spend a minimum of $14,000. That’s a huge range to navigate, and many homeowners dreaming of a new kitchen may wonder how they can effectively budget for one.

Elizabeth H., an Atlanta homeowner, spent years saving up to make over her home and recently completed a series of renovations—including a kitchen remodel. “It was a pretty massive thing,” she says. “But now that it’s over, it’s fantastic.”

As a result of her experience, Elizabeth can offer some insight into how to plan for a budget kitchen remodel—from doing lots of research to preparing for the unexpected. She also has some surprising tips for cutting costs.

Establish your priorities

When creating her kitchen remodel budget, Elizabeth thought long and hard about what updates would have the most impact aesthetically and practically.

“I thought about which things I use the most and which would have the biggest impact,” she explains. For example, when her friends and family come over, they tend to gather around the kitchen island. “I thought, I definitely don’t want to skimp on the island because that’s going to be a focal point for me on a day-to-day basis and when my friends come over, whereas with the flooring I can choose something more modest.”

Elizabeth opted to focus more of her budget on the areas of her kitchen that would help her enjoy the space and cut back on things that didn’t matter to her as much. Once she settled on her priorities, she could plan her budget more strategically.

Tip: Cabinets are typically the priciest part of a kitchen renovation, accounting for roughly 30% of the total job, according to the same Bankrate study. Shopping around for a style that fits both your taste and your budget could be time well spent.

Set your budget

Elizabeth heavily researched what a remodel would cost her—even factoring in expenses unrelated to labor costs and materials. For example, when renovating a kitchen on a budget, she recommends earmarking funds for dining out, takeout, and any other solutions you need to pursue while your kitchen is out of commission. “You need a pizza fund,” she jokes.

You may also need to budget for alternate housing. Elizabeth rented a short-term apartment to live in while her home was uninhabitable. Once she had a realistic budget that took into account these extra costs, she spent a few years saving up to reach that goal.

Staying focused and being patient enough to reach her goal helped her avoid financial stress when it came time to start the work. While looking for new appliances and cabinets as soon as you start daydreaming about your project can be tempting, you also want to be realistic. “Save first, shop later,” Elizabeth suggests.

Tip: If you’re saving for a renovation, stash your funds in a money market account or online savings account. You’ll earn interest and grow your savings faster.

Expect the unexpected

The tricky thing about redoing a kitchen on a budget is predicting how much the final cost will be.

“Whatever you think your budget will be, go over by a good bit,” Elizabeth warns. “A lot of people say plan for 25% extra, but I think the older your home is, the more of a buffer you need. Once they start opening up walls, they may find more issues that need repairing.”

A budget kitchen remodel typically comes with unexpected hurdles, and Elizabeth recommends being prepared for surprises so they don’t shock you. This mindset also applies to how long a kitchen remodel will take, not just how much it will cost. “You just have to roll with it,” she says. “I think whatever timeline they give you up front, it’s important to recognize they’re probably not going to stick to it.”

The bottom line is that there will always be surprises and hiccups. “No matter how much you plan or how much you prepare, no matter how organized you are or what research you do, there will still be things that vary,” Elizabeth says. “Having really good construction partners you can trust is the best way to navigate the process overall.”

Once you’ve figured out your kitchen renovation budget, start growing your savings to pay for it with confidence. A Discover^® Online Savings Account offers competitive yields with no monthly fees.

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