Financial Tips to Do Better

After long months of heavy fields of snow, the first sprouts of green feel like a miracle. We open the windows, we spend time with the sun, and when the spring cleaning has just begun, the laundry list of repairs, updates, and home renovation projects gets longer and longer. Whether it’s replacing outdated fixtures, tackling overdue maintenance, or planning a larger renovation, we're here to help you turn your to-do list into a house you're happy to call home. 

Start by mapping out your budget, so you don't get lost in snowballing costs. Having a set limit in place before you tackle your to-do list will help you to attack what feels necessary.  With a clear and realistic plan, timeline, pricing estimate, and the right funding approach, you can complete your home improvement projects with confidence.

Step 1: Set clear expectations

Listen, planning isn't my favorite thing in the world, but taking the time to do it can save you time, money, and avoid future problems. Before you hammer a single nail or start spending, build a solid roadmap of your goals. You'll be glad you did.

Outline everything the project will need, list the steps, materials, and determine which aspects you can handle on your own, and identify areas where you need professional help.

You might not be able to complete every single task you hope to, and that’s okay. As you list your project goals, identify which items are essential and which are optional.

You should always prioritize essential fixes over cosmetic enhancements. Top priorities include things like:

• Critical repairs
• Overdue replacements
• Safety or structural issues
• Efficiency improvements

Step 2: Budget vs. value

Base a well-built budget on research, not rough guesses. Your financial plan acts as a guardrail to keep your project on track.

Follow these steps to help you estimate a realistic budget:

• Compare market prices: Ask family, friends, neighbors, and community groups if anyone you know has tackled a similar project and can share a rough cost estimate or price range.
• Obtain multiple estimates: Contact several local contractors for quotes to ensure you’re getting a fair deal.  
• Price out materials & fees: Research costs for materials, supplies, labor, and any permits or inspection fees.
• Include a buffer: Make sure you include a cushion for unexpected expenses. Add a buffer of around 10-20% for covering unforeseen costs.

Some improvements offer benefits that last well beyond the project completion date. For example, energy-efficient upgrades may reduce monthly utility bills. Kitchen or bathroom updates almost always enhance value. Increasing your home’s worth isn’t just about improving resale value for future buyers; it’s also about making improvements that add value to your daily life.

Step 3: How are your finances doing?

Once you’ve mapped out your full plan, it’s time to determine how it fits in with your current finances.

Your current budget influences how large a project you can realistically manage. Determine whether your budget can accommodate a new loan payment if financing is necessary. Also, consider whether any upcoming expenses might eat up extra room in your budget.

It’s reasonable to access some of your savings to help cover costs for an essential home project, especially if it prevents major issues down the line. However, it’s important to maintain at least some of your financial safety net. Your emergency fund should still be available for unexpected medical bills, car repairs, and other emergencies.

Don't have an emergency fund? Check out our guide to start putting one together Be Prepared, Not Scared: The Power of an Emergency Fund.

Maybe you already know that you'll need financing. Remember your credit score will influence the terms of your loan! Reviewing your credit report ahead of time gives you a clear picture of your financial standing and allows you to correct any errors before applying for a loan. You can check your credit score anytime in Digital Banking using SavvyMoney!

Step 4: How will you pay? 

You've got your plan, you've got your budget, now how are you going to pay for it all?

How you pay is just as important as selecting materials or contractors. Choosing the right financing option helps you stay on track and avoid unnecessary costs.

The most common financing options include:

• Using funds from your existing savings, such as our Kasasa accounts, helps you avoid interest charges. Depending on your savings balances compared to the project costs, you may need to delay the timeline to give yourself more time to save.
  
  Ideal for: Small projects or quick repairs with low overall costs.

• A low-rate credit card is a convenient tool for small upgrades or short-term expenses. The key is to repay balances quickly to keep the project from growing more expensive. Avoid high-interest cards, as they can become costly over time and increase total project costs.
  
  Ideal for: Small projects or short-term expenses, like minor upgrades or routine maintenance, if paid off quickly.

• Personal loans provide structure and predictable monthly repayments. This financing option can be especially useful for medium-sized projects or for borrowers who don’t want to use their home’s equity as collateral. With a lump-sum payout upfront and set payments, you’ll enjoy easy budgeting and lower interest costs, plus avoid long-term debt.
  
  Ideal for: Mid-sized projects, such as roof repairs, flooring updates, or new appliances.

• A home equity loan provides a single lump-sum payout upfront at a fixed interest rate, making it useful for larger projects with a clear cost. This funding option also provides easy budgeting and one clear monthly payment, even for more substantial renovations. Because home equity loans use your house as collateral, they offer some of the lowest interest rates available.
  
  Ideal for: Large, well-defined projects with a precise cost estimate, such as putting in a backyard pool. 

• A HELOC (Home Equity Line of Credit) offers flexibility that works well for evolving or multi-phase projects. With a HELOC, you’re approved for a set borrowing limit, then you pull only what you need, when you need it. You pay interest only on the amount you use, not the entire credit line.
  
  Higher borrowing limits, lower borrowing costs, and greater flexibility make HELOCs the ideal option for projects that may span several months or for projects where costs shift while already underway.
  
  Ideal for: Mid-to-Large, ongoing, or longer-term projects.

Your ideal financing solution depends on your specific projects and timelines. The right option for you supports both your project and long-term financial goals. At Atlantic, we can tailor a combination of a home equity loan and a HELOC to fit your needs, giving you steady, predictable payments for the core of your project, along with extra flexibility to handle any unexpected costs that pop up along the way.

TLDR:

Spring is a great time to tackle home projects but start with a clear plan and a realistic budget, so costs don’t snowball. List your priorities (critical repairs first), research prices and get multiple quotes, and build in a 10–20% buffer. Check how the project fits your current finances, protect your emergency fund, and review your credit score in advance if you need a loan. Then choose the smartest way to pay: savings or a low-rate credit card for smaller jobs, a personal loan for mid-sized projects, and a home equity loan or HELOC for larger or ongoing renovations. The right financing option should fit both your project and your long-term financial goals.

We’re here to help!

A new season is the perfect time to invest in your home. By setting a realistic budget, choosing financing that works for you, and prioritizing high-impact projects, you’ll avoid overspending and create upgrades that add value and comfort for years to come.

If you want to learn more about our various home improvement financing options, we’re happy to help. Please call 800-834-0432 to schedule an appointment with a member of our lending team.

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The Atlantic Financial Tips to Do Better strives to deliver informative, relevant, and sometimes fun financial information. If you enjoyed this article, please forward it to a friend.

Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.