As a modern-day homeowner, automation and smart home upgrades have likely piqued your interest as an investment. These devices can add security, comfort, and accessibility options to your house, which can significantly maximize your home’s potential. Though making these upgrades can be relatively simple and exciting, they can also become costly when completed on a large scale.
Thankfully, there are several options available for you to utilize when considering how you will be able to finance smart home upgrades. Let’s take a look at a few ways you can do so.
- Understanding the Cost of a Smart Home
- Create a Savings Plan
- Opt for a Personal Loan
- Refinance Your Mortgage
- Calculate the Savings You’ll Accumulate
- Wait for the Right Price
Understanding the Cost of a Smart Home
First, it’s important to assess how much you want to upgrade and what the cost of these devices will run you. If you are using a professional service to have these upgrades installed, have them come to your house to give you a rough estimate of the project’s overall cost, including service and installation fees.
If you are not using a professional service, you should complete basic research online to see how much you’ll be expected to spend on the upgrades. The total cost of a complete smart home costs an average of $1,000 – $3,500 or more depending on which upgrades you choose to make.
There are various systems available to help you manage virtually every room and aspect of your home. The choices are seemingly endless from entertainment devices, heating/cooling management systems, to comprehensive security systems. Knowing which devices you are most interested in and which will serve the most benefit for you and your family can help you determine how much you are willing to spend.
Create a Savings Plan
With your total costs in mind, create a realistic goal of how much money you need to save and when you need the money. This will help fuel your motivation to start setting a little money aside each paycheck. There are many savings plans and challenges available to help you reach your goals. These challenges can be a fun activity for the whole family to get involved with and teach your kids a thing or two about financial wellness and sticking to a household budget.
Opt for a Personal Loan
One of the most convenient methods of obtaining the necessary funds for your smart home systems is to take out a personal loan. These loans are granted to anyone with a strong credit history looking to take out a loan in any reasonable amount needed. There are often no stipulations to what this loan can be used toward, which is why it is a strong choice to use for smart home upgrades. If you are interested in choosing a personal loan, talk to your financial institution or advisor to find a loan with the lowest interest rate, and make a plan to pay it back.
Refinance Your Mortgage
One of the more unconventional, yet wise financial routes you can take is refinancing your mortgage. If there are currently more competitive mortgage rate offerings available than when you first purchased your home, it could be a great time to refinance. Something such as a no-closing cost refinance option could save you money on your overall mortgage if you continue paying the same or higher on your monthly payments. Over time, you will accumulate less interest and ultimately spend less. By talking to a reputable mortgage expert, they can help you uncover how much you will be saving in the long run with this option. Knowing this information can justify spending your money on home improvements.
Calculate the Savings You’ll Accumulate
Another way to justify your spending is to calculate your potential savings on your energy bills. With the proper smart home devices in place, you could save money by better managing your electricity, water, and heating/cooling consumption. Recent studies show that the average homeowner can save upwards of 20-30% on their bills each year by installing just a few smart home appliances and automation systems. These savings can help quickly pay for themselves after just a few billing cycles, making the investment in such devices well worth it.
Wait for the Right Price
With the popularity of technology and smart home devices, retailers are constantly running sales on their most popular devices. Waiting for the price to drop on an item is a great way to save money on smart home upgrades. A variety of price check tools available online will give you insight into the historical price of a device. These tools can also alert you whenever the price drops on an item. Be on the lookout for significant holiday sales such as Labor Day, Black Friday, or Cyber Monday. Deals on these days often mark the lowest prices of the year for the most in-demand items.
With all of these options available to you to finance your smart home upgrades, you’ll be able to afford the safety, automation, and comfort you’ve always dreamed of in your home.
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