Is it time to breathe new life into your kitchen? Or, maybe you want a more spa-like experience in your bathroom. Wherever your home needs updates, you can ensure you have the money to make it happen with the right savings tips. Below are a few to consider as you plan a home improvement project.
3 Tips to Effectively Save for Home Improvements
1. Make a Timeline
You may never complete a project if your goal is to do it “someday.” Don’t be vague with timelines – sit down and consider when would be realistic. Doing so will help you break a long-term savings goal into smaller, less intimidating monthly goals. You could also remember future expenses that may or may not make a project less ideal financially, if only temporarily. For example, if you’re helping a child through college and there’s still one more semester of bills to pay off, it may make sense to wait until after they’re out of school before refocusing your budget elsewhere.
2. Create a Designated Savings Account
It helps to segment your money away from general savings both to ensure you don’t accidentally use it and to gain a clearer picture of your progress. To accomplish this, you should open a second savings account specifically for your home improvement project. Automate monthly transfers to this account in an amount that works for you to put your savings on auto pilot.
Tip: General Electric Credit Union (GECU) savings accountholders can rename accounts within Online Banking or our mobile app. Transfer or deposit funds into the “Dream Kitchen” or “In-Ground Pool” fund to continue inspiring your efforts.
3. Get a Price Estimate
House renovation costs differ greatly, and you won’t know how much to save until you nail down the details with a contractor. After receiving bids from multiple candidates, you may be tempted to accept the lowest-priced bid. Sometimes, the least expensive option isn’t the best one for you. Many factors go into the price of home renovations, such as the materials and experience of the team. Cutting corners in who you hire could leave you with results that are less than satisfactory.
But that doesn’t necessarily mean the most expensive bid is the one you should go with, either. Find the right balance of a quality contractor and one that is pricing things fairly and realistically. To do so, ask around to family and friends to see if anyone has completed a similar project and how much they paid for it. If you have the skills and plan to DIY a project, there are many DIY accounts on social media apps like Pinterest that may help you conceptualize the price of what you want to do.
How We Can Help
Along with the saving methods above, GECU can help you achieve your home renovation goals with our digital tools and competitive savings rates.
- Money Management. This robust tool, available through Online Banking and our mobile app,1 gives you a visual way to budget, track savings goals, and pay off debt.
- Round-Up. After you enroll in Round-Up, we’ll round up your debit card purchases to the nearest dollar. Then, we deposit the change into a GECU savings account of your choice.2
- Thrive Money Market. Get rewarded for your growing savings balance when you open a Thrive Money Market account. Accountholders earn interest on their balance based on a tiered system, so the higher your balance, the higher the interest you can accrue. These accounts also keep your money liquid, so it’s accessible when you’re ready to start renovations.
Ready to take advantage of everything GECU has to offer as you embark on a home improvement project? Become a credit union member. You just have to live, work, worship, or go to school in select Indiana, Ohio, or Kentucky counties. Confirm your eligibility here.
1We provide Online Banking and our mobile app to you for free; however, message and data rates may apply. Contact your service provider for details.
2Round-Up is only available for Simply Free, Choice, and Amplified High-Yield Checking accounts. Funds will be added to member’s chosen GECU savings or money market account; excluding Certificates, IRAs, or IRA Money Market accounts. Match will be paid on eligible funds at the end of the month with an annual match limit up to $350; reportable on IRS Form 1099.