How to: Create a budget for your DIY project

There are many reasons people don't start a DIY project, but usually only two reasons why they don't finish them. One is a lack of time and the other is running out of money. Creating a budget is one of the first steps in any home renovation of significant scale and shouldn't be ignored.

What to include in a budget

A budget for a home reno or a big DIY project is not that different to the kind of planning you need to run your home on a day-to-day basis. Primarily, you'll be looking at income and expenses.

Income can arise in one of three forms. Usually it's money that you set aside from your salary in the form of savings, but sometimes it's in the form of a loan from the bank - or even an extension of your mortgage. It's necessary to include this part of your budget into your normal household expenses to balance your books as well.

The third kind of income is what you can derive from selling off recycled materials. While you might recycle bricks using a cleaner to reduce cost, you could sell things like window frames, roof materials or light fittings that are being replaced.

Before you throw anything into a skip bin, think about if it's worth anything, and if you can use that towards the cost of your project. And remember, if you're renovating or repairing an investment property, the Australian Taxation Office says that this is a claimable expense. Chalk that up in the income column.

When it comes to your expenses, you need to have a thorough plan of your home or garden DIY project before you even start thinking about this part. You need to account for all of your materials and any tools you'll have to hire, as well as big items like diggers or a tip truck rental if you're excavating for a pool.

Importantly, there shouldn't be any oversights in your plan, because it's the unexpected expense which can blow a budget and force a project to a halt. Make sure you allow enough to complete the job, and then add some more on top to really make sure.

How often to review your home DIY budget

According to moneyhelp.org.au your household budget should be reviewed regularly to make sure it's still relevant to your needs. The same applies to your DIY budget, you should be checking your budget every time you hire a sander or buy some timber, to make sure you are still on track for completion.

A few dollars here and there all adds up, and if you haven't kept track of of all the little things, you may find you fall short on a big item that your project can't do without.