Tag: budget

The truth about building costs and how to stay on budget

Blog post title: "The truth about building costs and how to stay on budget" Image of a house shape made of Euro currency note

Building a new home or undertaking a renovation project is an exciting journey, but managing costs can often become a challenge. Many homeowners start with a clear budget in mind, only to find themselves facing unexpected expenses along the way. Understanding the true costs involved and implementing strategies to stay within budget can make all the difference in achieving a successful outcome without financial stress.

Working with experienced professionals, such as Newcastle builders, can help you navigate the complexities of construction costs and avoid unnecessary expenses. By setting realistic expectations and planning carefully, you can ensure that your dream home is built without breaking the bank.

Here are key insights into building costs and practical tips to help you stay on budget.

Understanding the factors that influence building costs

Several factors can impact the overall cost of building a home or renovating an existing one. Being aware of these factors can help you make informed decisions and plan your budget more effectively.

Key cost factors to consider:

  • Size and complexity of the project: Larger and more intricate designs typically come with higher costs due to the additional materials and labour required.
  • Material choices: High-end materials, such as stone worktops or custom cabinetry, can significantly impact your budget.
  • Labour costs: Skilled tradespeople come at a premium, and their rates can vary based on demand and location.
  • Site conditions: Unexpected challenges such as difficult terrain, poor soil quality, or accessibility issues can lead to additional expenses.
  • Permits and regulations: Compliance with local building codes and permits can add costs that homeowners may not anticipate initially.

By understanding these cost components, you can better prepare and allocate your budget accordingly.

How to create an accurate budget

An accurate budget is the foundation of a successful building project. It ensures you have a clear financial plan and reduces the risk of running out of funds before completion.

Steps to creating a realistic budget:

  1. Get detailed quotes: Obtain quotes from multiple contractors and suppliers to compare prices and services.
  2. Factor in contingencies: Set aside at least 10-15% of your total budget for unexpected costs that may arise during construction.
  3. Prioritise must-haves: Focus on essential features first, and consider optional upgrades later if your budget allows.
  4. Consider long-term costs: Energy-efficient materials and smart home features may have higher upfront costs but can save money in the long run.

Having a well-planned budget helps you stay in control and avoid financial surprises.

Tips to stay on budget during construction

Once the construction process begins, staying within budget requires discipline and careful monitoring. Here are some strategies to keep your spending in check.

Choose cost-effective alternatives

You don’t have to compromise on quality to stay on budget. Many budget-friendly alternatives offer similar aesthetics and functionality as high-end options.

Examples include:

  • Choosing laminate worktops instead of natural stone.
  • Opting for prefabricated cabinetry rather than custom-built.
  • Using engineered wood flooring instead of solid hardwood.

Avoid frequent changes

One of the biggest budget pitfalls is making last-minute changes to your plans. Alterations in design, materials, or layout can lead to additional costs in labour and materials.

How to avoid unnecessary changes:

  • Finalise designs before construction begins.
  • Work closely with your builder to ensure your vision is well understood.
  • Stick to your original plan unless absolutely necessary.

Monitor expenses regularly

Keeping track of expenses throughout the project allows you to identify potential overspending early and adjust your plan accordingly.

Ways to track your budget:

  • Use budgeting software or apps to monitor costs in real time.
  • Request regular updates from your builder or project manager.
  • Keep a detailed record of all receipts and invoices.

Being proactive about tracking expenses helps prevent overspending and keeps the project on course.

Negotiating with contractors and suppliers

Negotiation is a valuable skill when it comes to construction costs. Don’t hesitate to discuss pricing and request discounts where possible.

Tips for effective negotiation:

  • Ask for bulk discounts on materials if purchasing in large quantities.
  • Compare quotes from multiple suppliers to find the best deals.
  • Be open to discussing flexible payment terms with contractors.

With the right negotiation tactics, you can save money without sacrificing quality.

Managing building costs effectively requires careful planning, informed decision-making and ongoing monitoring. By understanding the key cost factors, setting a realistic budget and implementing smart strategies, you can achieve your construction goals while staying within your financial limits.

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Power down your bills. Which of my household appliances cost the most and least to run?

Power down your bills. Which of my household appliances cost the most and least to run?

Understanding your household energy consumption can significantly impact your budget and environmental footprint. While the initial purchase price of appliances is a major factor, the ongoing operational cost often overshadows it over the appliance’s lifespan. This post helps you identify which appliances in your home are the biggest energy guzzlers and which are the most economical to run.

Knowing how much each appliance costs to run involves considering two key factors: wattage (the power consumption measured in watts) and usage time. High-wattage appliances used frequently will naturally cost more to operate than low-wattage appliances used sparingly. To calculate the exact cost, you’ll need your appliance’s wattage (found on a label, usually located on the back or bottom) and your electricity price per kilowatt-hour (kWh). Your electricity bill should provide this information.

The big energy spenders

Generally speaking, these appliances tend to consume the most energy:

  • Electric / immersion water heater: Electric water heaters consume a considerable amount of energy. Consider switching to a tankless water heater, also known as a demand-water heater. These heaters only heat water on demand, saving energy by eliminating standby heat loss associated with traditional tank-style heaters. Alternatively, if replacing your entire system isn’t an option, ensure your current water heater is well-insulated and consider lowering the thermostat setting.
  • Electric oven/range cooker: While replacing your oven might not always be feasible, you can dramatically improve its energy efficiency. Ensure your oven door seals are airtight to prevent heat loss. Utilise the residual heat after cooking – many dishes can continue to cook effectively with the oven switched off. Embrace smaller appliances like a toaster oven or air fryer for smaller cooking tasks, reducing the energy needed to heat a large oven.
  • Kettle: Your electric kettle, a seemingly insignificant appliance, can actually consume a surprising amount of energy if it’s not energy-efficient. Choose a kettle with a wattage rating of 1500W or less. Look for features like automatic shut-off, which prevents energy waste from prolonged heating. Consider the size carefully; a smaller kettle is more energy-efficient for smaller households. Boiling only the amount of water you need also significantly reduces energy consumption – avoid overfilling.
  • Tumble dryer: Your tumble dryer is a notorious energy guzzler. Consider swapping to a heat pump dryer. These dryers use significantly less electricity than conventional models by recycling heat from the exhaust air, resulting in faster drying times and reduced energy costs. If you’re not currently thinking about trading in your old dryer, consider using tumble dryer balls made of wool – they help to reduce drying time by about a quarter by allowing better air circulation. They also act as natural fabric conditioner and cut down on the amount of lint produced. If space allows, consider line drying your clothes – it’s completely free and gentle on your fabrics!
  • Refrigerator/freezer: This workhorse of the kitchen is constantly running. Ensure yours is operating efficiently by regularly cleaning the coils (located at the back or bottom), ensuring proper ventilation, and keeping the door seals airtight. Consider upgrading to a newer, energy-efficient model with an ‘A+++’ rating if your current refrigerator/freezer is old or inefficient. Remember to avoid overfilling, which can restrict airflow and force the compressor to work harder.
  • Electric radiator: Old-fashioned electric radiators are often inefficient, radiating heat directly rather than retaining and releasing it slowly. Look into modern alternatives like electric panel heaters or infrared heaters. These options often offer programmable thermostats, allowing you to precisely control heating schedules and save energy. Consider investing in a smart thermostat, which can further optimise your heating system and reduce energy waste.
  • Air conditioner: Air conditioners are essential in warmer climates, but they can dramatically inflate your energy bill. Invest in an energy-efficient model with a high SEER (Seasonal Energy Efficiency Ratio) rating. Regular maintenance, including cleaning filters, is crucial for optimal performance and minimising energy consumption. Consider using the air conditioner only when necessary and employing other cooling techniques like fans or opening windows during cooler parts of the day.

The energy savers

These appliances generally consume less energy:

  • Microwave oven: Microwaves generally use less energy than conventional ovens to heat food, making them a smart choice for quick meals. Look for models with high wattage and energy-efficient designs, indicated by energy star ratings. While convenient, avoid overuse; reheating leftovers in a microwave is far more efficient than using your conventional oven for smaller portions.
  • Slow cooker: Slow cookers are masters of low-energy cooking. They use significantly less electricity than ovens or stovetops because they maintain a low, consistent temperature for extended periods. This makes them perfect for preparing hearty stews, soups, and roasts while minimising energy consumption.
  • LED Lighting: Switching from incandescent or halogen bulbs to LED lighting is one of the easiest and most impactful changes you can make. LEDs use up to 80% less energy and last much longer than traditional bulbs. The initial investment quickly pays for itself through reduced electricity bills and less frequent bulb replacements.
  • Laptop computer: Compared to traditional desktop computers, laptops often consume less energy. They typically have lower wattage power supplies and integrated components, contributing to reduced energy usage. When not in use, always shut down completely, rather than leaving your laptop in sleep mode.
  • Small kitchen appliances (e.g. toaster, food processors etc.): While seemingly minor, the energy consumption of toasters can add up over time. Opt for toasters with adjustable settings to avoid over-toasting, minimising wasted energy. Look for models with a high wattage rating for faster toasting and potentially more efficient operation. Food processors are a great option for those looking to reduce their energy consumption when cooking. They are much more efficient than using a blender or a food mill, as they can handle a larger volume of food and complete tasks more quickly. When using a food processor, be sure to only process the amount of food necessary and unplug it when not in use.
  • Electric blanket: Electric blankets and heated throws provide warmth without the need to heat an entire room, resulting in significant energy savings compared to cranking up the central heating. Many modern models feature automatic shut-off timers and multiple temperature settings, allowing you to personalise your comfort while optimising energy usage.

Frequently asked questions (FAQs):

Q: How can I calculate the exact cost of running an appliance?

A: First, find the wattage (W) of the appliance. Then, calculate the kilowatt-hours (kWh) per year: (Wattage/1000) x (hours of use per day) x (365 days). Finally, multiply the kWh per year by your electricity cost per kWh. This gives you the annual running cost.

Q: Besides replacing appliances, what else can I do to reduce energy costs?

A: Besides upgrading to more efficient appliances, consider:

  • Unplugging electronics when not in use.
  • Using power strips to easily switch off multiple devices at once.
  • Regular appliance maintenance (cleaning refrigerator coils, etc.).
  • Improving home insulation.

By understanding your appliance’s energy consumption, you can make informed choices that save you money and contribute to a more sustainable lifestyle. Remember that while the initial cost of an energy-efficient appliance may be higher, the long-term savings in operating costs often outweigh the increased upfront investment.

7 easy money-saving home ideas

7 easy money-saving home ideas

Money-saving home ideas seem like a good idea right now, given the recent budget update and the cold weather approaching. Making small changes around the home can save big money, even though some may require initial investment. However, when combined, your costs can come right down.

Modern doors and windows

Old doors and windows become degraded over time, and this stops their insulation from working correctly. Replacing them with fully fitted composite doors or windows, for example, helps keep the warmth in and the cold out. With most new doors and windows, even the glass works much better. You can capture the sun’s heat and keep it in the room with double and triple glazing. This can significantly boost the temperature of a room by a few degrees to save money.

Money-saving home ideas in the kitchen

The kitchen is probably the most power-hungry room in the home, given all the appliances we have. So, saving power in the kitchen means saving money on your bills. Low-power alternatives such as microwaves and air fryers can bring energy bills right down. But food waste is also a problem. UK families waste around 140 meals per year, which is also money in the bin. Planning meals and cooking in batches helps reduce food waste and lower your food costs.

Energy-efficient lighting

When it comes to saving energy, one of the most popular methods is switching to LED lights. LED light bulbs are an ideal way to lower your bills as they use up to 90% less electricity. But that’s not all. You can control some brands of LED lighting with your smartphone. This means you can remotely turn off the lights if you leave them on, further reducing how much energy you use. With timers, they also make a great burglar deterrent instead of leaving the TV on!

Bathroom money-saving home ideas

Next to the kitchen, we can also use a lot of energy in the bathroom. Gas, electricity and water are used in most family bathrooms, which can add up to larger bills. But there are a few things you can do to reduce how much energy your family uses every day when using the bathroom:

  • Reduce the length of time you spend in the shower in the morning.
  • Turn the boiler temperature down to save gas, and shower heat to save electricity.
  • Install low-flow devices that can help use less water without compromising on pressure.
  • Use a pressure-boosting shower head instead of installing a power shower.
  • Use bathroom products until they’re actually gone and not just half finished!

Simple changes such as taking five minutes in the shower adds up to big savings over the course of a year. However, reducing waste and prolonging product usage also helps.

Using only what you need

Many people are guilty of using too many everyday products. Whether it’s water, energy or even shampoo, we often waste a lot of what we need each day. Think about how many times you boil a kettle with more water than you need for tea or coffee. That’s wasted energy and water right there! The same goes for things like filling the sink to wash the dishes, cooking food and even bruising your teeth. Small changes like this make things last longer for savings in the long run.

Money-saving home ideas with laundry

Perhaps the most power-hungry appliance is the washing machine. Washing machines are a Godsend and make laundry a breeze. But convenience can add up costs. However, you can use eco-mode on your appliances, which is designed to perform well and use less energy. For instance, a cold laundry wash at about 20°C uses around 60% less energy. You should also check manufacturer instructions for loading the machine to its optimal capacity.

Monthly and seasonal maintenance

When you look after things, they usually tend to last longer. This is true of almost everything, including appliances, electronics and your home. Monthly and seasonal cleaning and maintenance routines are a great way to get the most out of the things you use all the time. For example, you can prolong the life of a washer-dryer by using cleaning products like Calgon. Your car will run smoothly if you keep it clean and do the necessary vehicle checks each week.

Summary

Installing new doors and windows is one of the most powerful money-saving home ideas when it comes to energy use. However, even making the switch to LED lighting uses a lot less energy. Of course, any efficient family home relies on monthly and seasonal cleaning and maintenance.

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8 ways to reduce your household expenses and running costs

8 ways to reduce your household expenses and running costscredit

If you own a home, you’ll know just how costly it can be to run month to month, and if you don’t keep an eye on your outgoings, they can spiral out of control and leave you in a financial mess. The good news is that, with a bit of planning, there are many ways to keep costs down and save money here & there.

Some of these methods take more time than others, but once you get into a routine, it shouldn’t be too difficult to manage. Here are 8 ways to reduce your household expenses and running costs.

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Reduce the amount of water you use

Reducing the amount of water you use is particularly important if you have a water meter installed. Every drop of water costs you money, so saving water wherever you can is a no-brainer. If you have small children, have them share a bath instead of running a new one for each child. Not only will it save a great deal of water – and time – they might find it fun too!

If you’re a keen gardener or have a range of household plants, why not consider setting up a water butt to collect rainwater? It can be used on all of your plants and, apart from the initial outlay, it won’t cost you a penny. It may not seem like a huge cost saving, but small changes can make a big difference.

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Switch it off

If you aren’t using a room, there’s no reason to have the lights on, so get into the habit of switching lights off whenever you leave a space. If you have children, explain to them why it’s so important and get them on board with it too. The same applies to electrical items that aren’t being used.

AV equipment, mobile phones, tablets and laptops all use electricity, so if they don’t need to be charged or aren’t in use – switch them off – don’t just put them on standby. As well as saving you some money, it will also reduce the risk of a house fire!

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Switch to solar energy

Solar energy can save you thousands over a lifetime, so if you don’t already have solar panels fitted to the roof of your property, you should look into it. Solar panels consist of lots of photovoltaic (PV) cells. When the sun shines, these cells absorb the sunlight, which is then converted into electricity you can use within your home.

Not only could it save you money, (you could even sell any excess generated to the national grid) it does wonders for the environment too! If it’s something you are keen to find out more about, search for solar companies in your area and have them come out to give you a quote.

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Insulate your loft

If your loft insulation isn’t great, lots of warm air could be escaping which will result in heftier heating bills. Having new insulation fitted will ensure that cold air stays out and warm air stays in, so it’s a worthwhile job to have done.

There are companies who can do this for you, but if you want to save even more money, buy some rolls of insulation and do it yourself. All you need is some protective gloves and the right amount of insulation for your loft area. There are many tutorials online to help you along if you aren’t entirely sure what to do.

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Shop around for insurance

If you auto-renew your insurance, you may be paying well over the odds for it. Shopping around for the best deal each year could save you hundreds, so take to the internet and do some comparing. If you want to make the process even easier, use one of the many comparison sites.

All you have to do is enter a few details about your property and it will generate the cheapest premiums available at that time. The same goes for car insurance, so the annual cost savings you can make from both might be pretty noticeable.

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Switch energy suppliers

Not all energy suppliers are equal, so if you’ve been with the same one for a while, it might be time to see what else is out there. The price per unit for both gas and electricity will vary, so shopping around could save you a lot of money. Many also charge a set daily rate, so it’s wise to do a comparison until you find the tariff and supplier that’s right for you.

Before switching to a new supplier, find out whether you’ll be tied in for a set period. If it’s lengthy and you think energy prices may substantially drop during this period, you need to weigh up the pros & cons of making the switch.

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Save money on your mortgage

Out of all your monthly outlays, your mortgage (if you have one) is probably the biggest, so it makes sense to save money where possible. One way to do this is by remortgaging, which involves changing to another lender offering a better lending rate.

The base rate is low at the moment, so even if you’re tied into an existing product, it’s worth calculating whether a switch would be financially beneficial. If you aren’t sure what you’re doing, talk to an independent mortgage advisor who’ll guide you through the products available and calculate how much you could save each month.

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Put your heating and water on a timer

If your central heating and hot water are on all the time, you may be forking out for heating you don’t need. If you and your family are out all day, you don’t need to have instant hot water, and you certainly don’t need to heat your home all day. Instead, set both on a timer so that you have heating when you need it and enough water to accommodate your family in the evening and first thing in the morning.

If it’s freezing outside, then it’s worth having your heating on low to avoid burst pipes, but having it on all day is unnecessary.

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