Full House Budget
Now we can take all the numbers and compile a high and low range for our basic preliminary budget. Tom’s would look like this
Low Budget High Budget
Foundation: $68,200 – $ 94,700
Main Floor: $165,000 – $192,500
Second Floor: $21,000 – $ 27,000
Low Budget Range: $254,200
High Budget Range $314,200
Now let’s calculate your budget numbers
Take your previous numbers and compile a high and low range for our basic preliminary budget.
Low budget High Budget
Foundation: $_____ – $________
Main Floor: $______- $________
Second Floor: $______- $_______
Low Budget Range: $__________
High Budget Range $__________
Now we have a range of numbers to help guide us towards the completion of your green home. This is a great exercise for multiple partners on a project. For instance, a husband and a wife should each complete the checklist in isolation. You may need two copies of the blog or you can print all the worksheets for free from my website at www.Jobe.ws .
Then come together over morning coffee or lunch and begin to compare each of your finish expectations regarding materials and anticipated budget. Next continue to refine your expectations and worksheets to a point you both can agree on before hiring any other team member to assist with your project. You already have a great start so keep reading and working through the process.
Also take a look at the big picture surrounding your green home project and your current cash position.
In Tom’s example he will need a 15% building emergency fund that I prescribed in the beginning. We take his high budget range of $314,200 and multiply that by 15% and find that he would need $47,130 in emergency funds. Now subtract that from the high range and the budget for his project narrows to an easy to understand $254,200 to $267,070.
What is your budget range? I suggest holding this number close to the chest. Use it to guide your entire project in privacy. Just as you do not walk on the used car lot and announce what you want to spend, nor should you do this with your prospective contractors or any other construction team members. Many green home contractors will recommend that you tell them your total budget. Just remember that they are used to working with clients without the inside knowledge that you possess from reading this blog. By the time you actually contact your supplier or installer odds are you may know as much or more about the process than your project manager or salesman himself. So calculate your budget number, remember it, and let’s proceed with the project.