I have done two whole house remodels and learned the hard way – this is where to spend and where to save in a home renovation

When you are remodeling, everything comes down to budget. From realizing your dream space to navigating budgets, schedules, and unexpected contingencies, it’s a journey that tests both your patience and your wallet.

No matter if your budget is unlimited, on a shoestring, or somewhere in the middle, we all want to know we're investing our money into the right areas to really make an impact in a renovation.

Having (almost) completed two full house remodels myself, I've learned a few tips and tricks along the way that helped my vision come to life without blowing the budget. But knowing where to spend and where you can save isn't always obvious. Here, I'm sharing the lessons I’ve learned, often the hard way, about where to allocate your budget in a home renovation.

Where to spend and where to save in a remodel

The first thing to note is, of course, that there are elements of the project, like utilities for example, where there isn't just an option to spend or save – you simply have to get them done and get them done well.

A renovation is overwhelming and it can be hard to say no to things that are high up on your wish list, but compromises often have to be made. Trust me, I've had to make a lot of them.

'When planning your next home renovation, think carefully about where your spending will have the greatest impact,' advises Michael Valente, co-founder and CEO of Renovation Sells. 'Spend on renovations that add real value to your home and consider the long-term benefits of your investments. By focusing on the areas that matter most like kitchens, bathrooms, and flexible spaces you can enjoy a home that’s both comfortable and functional.'

So whether you’re tackling a single room or a whole house, these tips should help you avoid pitfalls and feel confident in your renovation decisions.

1. Spend on flooring and tile

The general rule of thumb is that you'll need to splurge on items you use and touch day-to-day and any foundational elements that are hard to change later on.

Flooring is such a crucial part of your home, it impacts the look and feel of each space and it needs to withstand constant use. A beautiful, well-made floor creates continuity and elevates every other element in the space.

I've learned the hard way that cheap flooring just doesn't last, and you often end up having to replace it, meaning you've paid twice and not actually saved yourself any money in the long run.

2. Save on cabinetry

This might be a controversial take, but if you're looking at your kitchen remodel ideas and realizing that there are a lot of cuts to be made then I'm here to help you save some cash. I think the kitchen is one of those spaces where you can look to save the most money. Yes, it is the heart of your home and you of course want it to look, feel, and perform beautifully but there are ways to save and places to push the budget a bit further.

Cabinetry can quickly become one of the most expensive aspects of a renovation, but if you stick to a standard shaker-style kitchen there are plenty of ways to then jazz it up with countertops, tiling, and decor. This also allows you to spend a little more on a statement kitchen island or pantry cupboard that helps elevate the entire space.

IKEA hacks really come into their own here too. There are plenty of places to shop to update IKEA kitchen cabinets where you can buy new fronts to upgrade their basic units, and IKEA cupboards and wardrobes can be upgraded with paint and moldings to look more bespoke on a budget.

3. Spend on countertops

Kitchen countertops are one of the most used surfaces in a home. Investing in a durable, timeless option will add interest and keep your space looking pristine for years.

Cheap countertops will always look cheap because they're so tactile – you touch and use them every day. Choosing a low-quality countertop may save you money upfront, but they are prone to chipping, staining, and warping over time. Whereas cheap cabinetry can be dressed up with a beautiful marble worktop and instantly look more expensive.

'We always think it's worth it to spend on stone material because it can carry a lot of impact – even with simple cabinetry details,' interior designer Wendy Labrum agrees. 'Also, prioritize your spaces – spend on primary usage areas and save on secondary spaces that won't see as much action,' she adds.

'Upgrades like new countertops, modern fixtures, and efficient appliances can transform your kitchen into a central hub for cooking, entertaining, and gathering,' agrees Michael Valente.

4. Save on furniture

In my slow renovating journey, one of the biggest ways we have saved money is on the furniture in our home. Granted, it isn't all furnished yet as not every room is finished, but I think I could count on one hand the amount of brand-new pieces we own.

One of my favorite things to do is shop for vintage furniture. A pre-loved piece with a bit of history can add so much charm to a space while saving you so much money. Consider shopping for second-hand furniture from vintage shops, flea markets, or places to buy vintage furniture online and on platforms like Facebook Marketplace.

Now there is a caveat to this. And that is that the pieces you sit on often need to be new. Your sofa, dining chairs or banquette, bed (including mattress), office chair, and armchair in your reading nook all want to be as new and comfortable as budget allows.

5. Spend on bathroom fixtures

Many interior designers will tell you that plumbing fixtures in your bathroom are simply one place where you need to dig rather deeply into your pockets.

Sure fixtures, fittings, and faucets can get expensive, but trust me, they are worth their weight in gold (or chrome, depending on your style). High-end faucets and showerheads, for example, are often made from superior materials like solid brass or stainless steel, which resist corrosion and wear over time.

In my first home, we chose really cheap taps and shower fixtures from Amazon, and while they worked really well, all the plating wore off after a few months. On the other hand, I have second-hand fittings in this house that are super solid but have been used well past their sell-by date and are now stiff and leaky. Cheap fixtures might look good initially but often fail when it comes to daily wear and tear.

6. Save on home decor

While the small details are my favorite, this is certainly an area where you can save a little. Sure, a great statement piece of art might set you back, but you can re-balance the scales by shopping for some more budget-friendly throw pillows.

Home decor is where you can have the most fun experimenting without breaking the bank. It’s the finishing touches, not the foundation of a build, so it doesn’t always need to be a huge investment made and can be easily swapped out as trends change or your tastes evolve.

There are plenty of affordable retailers out there offering stylish decor items, from blankets and vases to rugs and candles, that can transform your space without costing a fortune. You can also find unique pieces by shopping vintage markets, thrift stores, or online platforms like Etsy.

7. Spend on switches and sockets

You might have realized by now, but the pieces that you come into contact with every day are the items that deserve a little more money spent on them. And the small details, like switches and sockets, can often make a huge impact.

In my reno, we have recently started swapping out our switches and sockets for brass options from Pooky including some really beautiful toggle switches that make turning the lights on a delight. Again, it's the little things.

If you're looking for ways to make your outlets and switches look nicer, look for designs that align with the room's overall style. Sleek, modern chrome or nickel plates for contemporary spaces or more classic styles for traditional homes like unlacquered brass or clear switch plates for wallpapered spaces.

8. Save on lighting

This is one that requires a bit of explanation. I'm not saying save on the electrics, as that is incredibly important and something you want to get right, but rather lighting ideas themselves.

Good, well-placed, layering lighting makes all the difference to the look and feel of a space, so that is of course worth investing time and money into. However, there are ways to save.

Lighting design doesn’t have to be expensive, it’s more about placement and layering than the price tag. Try sourcing cheaper fittings like wall sconces or lamp bases and put your money into a beautiful shade to upgrade the look. Alternatively, you can also save some cash by choosing rechargeable, battery-operated lights that don't require wiring – very useful if you forgot an outlet in your lighting plan.

9. Spend on hardware

Finally, my favorite thing to spend a little more on is hardware. Like the jewelry of cabinetry, hardware is the key to truly making something feel custom and curated, rather than store-bought without thought.

'Do choose natural, durable materials that will wear well with time,' suggests Charlie Bowles, director at Original BTC. 'Hardwearing metals that age well, such as weathered bronze, copper, or brass, are all excellent choices. They require little upkeep, and will not deteriorate over time, but build character.'

I'm a big fan of unlacquered brass. Our kitchen cabinet hardware, including the tap, is all by deVOL and has developed its own unique patina over time. Try to find room in your budget to upgrade handles, drawer pulls, door knobs, and other hardware to something more unique that will bring you joy every time you use it.

Remodeling a home is a delicate balancing act between making smart, strategic investments and finding opportunities to save without sacrificing on your vision. The key is to prioritize what will truly enhance your home’s functionality and long-term value, while still managing to spark joy every day.

There are no rules, and you can spend your money however you choose, but hopefully these tips from someone in the know go a good way to helping you make some informed choices.