Using my Good, Better, Best Framework and Budget Models for home projects will help you plan effectively in so many ways.

Along with the 50/30/20 Income Formula, these approaches not only give you a dollar amount you can spend for the year, but they also give you 3 budget models to follow and shopping list examples (such as accent furniture, accessories, rug) for each of the budgets.

 

 

If you’d like to learn the Good Better Best Framework and Budget Models for Home Projects to precisely prioritize and plan effectively for the next time you’re refreshing your living space, read ahead.

How to Create a Budget using my Good, Better, Best Framework and Budget Models

By the way, I’ll be teaching these frameworks LIVE in the Home Styling Makeover Masterclass, how to makeover your home in a weekend using the things you already have on January 17th at 4:00 pm Pacific! And I’d love to meet you dear reader, in virtual person!

Creating an Annual Spending Plan for Home Projects and Purchases with the 50/30/20 Formula

This is the first of two frameworks you will use to figure out your budget.

The 50/30/20 Formula and the Good, Better, Best Model helps you identify your annual home budget based on your household income.

Use them together to determine your budget and what can go on your shopping list.

Start with the 50/30/20 Formula, then do the Good, Better, Best Framework and Budget Model

The 50/30/20 Formula

The 50/30/20 Formula is a classic budgeting tool from Elizabeth Warren and her book, “All Your Worth” that helps you determine a
percentage of your total income towards 3 basic categories. I didn’t create this formula, but I modified it to help my design clients determine budgets and spending plans, because you don’t want to do any home project without a good spending plan.

50% Essential Expenses
30% Non-essential Expenses (this is where home projects fall).
20% Savings and Debt Repayment

The first step to creating a spending plan is to take your household income and multiply it by 30%. So, say your annual income is $100,000. 30% would be $30,000.

Next decide what your non-essential categories are.

Example: $30,000 > 5 non-essential categories: home, travel, clothes, entertainment, gifts = $6,000 a year per category.

$100,000 annual income x 30% = $30,000 > 5 non-essential spending categories = $6,000 your budget.

Now do your own math to come up with a rough figure. $_______ annual income x 30% = $_______ > ___ non-essential
spending categories = $_______ your budget.

The Good, Better, Best Home Makeover Model

Okay, now let’s look at a framework I created, the Good, Better, Best Home Makeover Model.

Once you have your annual home project budget, the Good, Better, Best Home Makeover Model will help you set realistic expectations for any home projects you have planned.

A Good Budget

Zero to $3,000

A ‘Good’ budget falls into the zero to $3,000 range. It is ideal for you if you already have a lot of things. This budget will allow for accessories and a few pieces of accent furniture like armless chairs, etageres and end tables. Or maybe one small discount sofa.

A Better Budget

$3,500 to $5,000

A ‘Better’ budget falls between a $3,500 and $5,000 range. It’s for when you have a lot of things already but need more or want a more finished look. This budget allows for a larger amount of accent furniture and accessories or a small sofa.

A Best Budget

$5,000 to $7,000

A ‘Best’ budget is over $5,000. It’s for when you want a more finished look, or you don’t have a lot of existing furnishings.

Now, just to clarify, for full-service design, $5,000 to $7,000 won’t work well. Remember, this masterclass is for ‘using what you have’ as your design catalyst and not spending a lot of money buying new things. And I created this model, or framework to help you set realistic expectations when making over your own home.

Got it? Great! So, now is your time to decide. This is a fun aha moment so get ready!

Using the figure you came up with using the 50/30/20 Formula $________, which budget model do you fall into? The Good, Better or Best? ________

Awesome, you now have a great budget based on solid figures AND realistic expectations.

By following this framework, you can achieve a beautiful, functional, and personalized home makeover. Plan thoughtfully and make the most of what you already have to create a stunning home.

 

SAVE MY SPOT!

 

 

Join me LIVE January 17th at 4:00 pm Pacific to learn the 3 frameworks I’ve used for 25 years for family, friends and clients to style, arrange and plan their home makeovers with a small budget, using what they have. Grab your space here and learn all about the  Home Styling Use What You Have Makeover MasterClass

What is Wellness Design? Learn more about the connection between your wellbeing and your home, featured on Deirdre Fitzpatrick’s Dying to Ask Podcast. And if you’d like to dive deeper into this topic, check out my blog post, “Hiring an Interior Designer”.