Your Budget ~ Wants vs Needs ~ The Now vs The Future

Money money money...

Get ready to dance with your cash. Let’s be real—money plays a starring role in any building project. We have to walk the line between “What do I want?” and “What do I need?” Sure, we all dream of cruising around in a shiny Lexus, but sometimes a trusty Toyota is all you need. So, let’s channel our budget-savvy higher self and make smart choices that keep our wallets happy.

Distinguishing between wants and needs is all about tapping into our human psyche. Let’s keep it simple!

~ Needs are the essentials for survival and well-being—think food, shelter, and basic healthcare. Meeting these keeps us stable and stress-free.

~ Wants however, are more about what tickles our fancy. They can boost happiness and express who we are but may lead to stress if they strain our budget. So, while needs keep us grounded, wants add a splash of joy.

Finding the sweet spot between needs and wants can feel like walking a tightrope. It’s common for people to say, “I’m only building once, so I’ll get exactly what I want!” But when that budget balloons by $50k, they might find themselves paying off their mortgage at 75—yikes! The goal is to strike a balance that leaves you happy and regret-free while keeping your finances in check. There's always the flip side though...

... Don’t fall into the trap of building for the ‘now’ without considering what you might need from a space in the future — If you’re planning on having 6 kids, the 2 bed small home with a loft might work for now but may be a squeeze in years to come. But... there's a flip side to the flip side — the beauty of small homes is the ability to add additional spaces and cleverly connect them to existing spaces – it's a game changer and the rule book is yours to write!

Ask Yourself

Building a house allows you to customise every nook and cranny to match your unique needs, preferences, and lifestyle. Plus, you get to play with the latest technologies, energy-efficient materials, and stylish designs. Building also offers the chance to ensure quality construction from the ground up. Ultimately building a home gives the satisfaction of creating a personalised living space that you have been a part of from start to finish.

Budget constraints are the name of the game for most people, and sticking to that budget can be trickier than you think. It’s all too easy for those sneaky over-spends to creep up by 10% before you know it. And just when you think you're in the clear, those little finishing touches in the bathroom or kitchen can send your budget soaring toward 15% or more. Keep a close eye on what you're spending and resist the draw of shiny, unnecessary frills. You in 10 years time will thank you!

Your small home may be your primary living space, an additional income property, or somewhere for friends and family. Whatever the reason it’s crucial to nut out the details around what it is you need vs what it is you want before you start. During the design phase, there are plenty of easy savings to snag, but be warned: it’s way easier to blow your budget than to trim it once construction kicks off. Let that sink in!

Check out the list of questions we've put together, it'll get you started, get you thinking and start some important conversations.

• What is the total budget? Be realistic!

• What is the timeline? Again be realistic

• What are my essential needs versus wants?

• Are there any areas of the project that I can DIY?

• How much space do I need now and in the future? How flexible is the floor plan for future modifications or expansions?

• Are there any specific accessibility or mobility requirements?

• Who is the space for?

• Will the home be occupied all year?

• Do I have an architectural style that you prefer?

• Do I have an architect / designer in mind? How much do they charge?

• What planning and regulatory costs are involved?

• Do I want to create an energy efficient building? What energy-efficient materials and technologies should I incorporate? Whats the long term value in this?

• Is alternative power i.e solar an option?

• What kind of internet and communication infrastructure do I need?

• Do I have any specific lighting requirements?

• What type of insulation will I use?

• What is my vision for the layout? Seperate rooms or open plan?

• How many bedrooms do I need?

• Do I need a full kitchen?

• What do I need in a bathroom space?

• What are my preferences with regard to rooflines?

• What about cladding? Is maintenance free important?

• Are there certain materials inside and out that are a must have? This includes, ceilings, flooring and wall coverings.

• How will I furnish the home?

• Do I need to consider any security features i.e alarm / cameras.

• What kind of storage solutions do I need to incorporate into the design?

• How will I run the hot water?

• How will I heat and cool my home?

• What about ventilation?

• Will there be a lot of earthworks involved for the building and / or landscaping?

• How will position the building to make the most of sun and natural light?

• What outside space do I have? And how can I incorporate this to compliment the indoor space? What cost implications might this have?

As you dive head first into your small home project, keep that needs-vs-wants checklist handy. With a lot of thought, careful planning and creativity, you'll whip up exactly what you need, with a dash or two of what you want, without sending your wallet into a tailspin.