Save Big on Home Projects With This One Strategy
A smart way to save money while spending on renovations
Last year, I decided it was finally time to renovate the outdated bathroom in the home I’d purchased a year earlier.
Thankfully, I have two full bathrooms, so I wasn’t in a rush. But I was tired of looking at that 1974 yellow tile on the walls, the hanging lights, and the yellow and white floor tiles. Yuck.
When I got the quote in fall 2023 — about $5,700 for everything, including labor and materials — I planned to save up over the winter, pay in cash, and start the work in April 2024. I do not like to pay interest on anything other than my mortgage.
Little did I know that a few credit card bonus offers would help me shave over $500 off the final cost, with no interest, fees, or headaches.
Here’s how I did it.
Step 1: I Planned My Renovation Budget Carefully
The contractor was highly recommended by a friend who worked with him on several projects, so I was comfortable with the estimate.
I’d be purchasing the materials myself, which totaled about $3,500 — fixtures, tiles, toilet, shower, faucets, vanity, medicine cabinet, lighting, and an exhaust fan. I thought about getting the exhaust fan with Bluetooth and 27 different colors, but I didn’t need a disco in my shower.
With labor estimated at $2,200, I had my budget laid out.
I’m always looking for ways to make my money work harder. I work hard for my money, so I want my money to work hard for me. I routinely look for bank account opening bonuses and recently made $400 with one, which I wrote about. But this time, there were no bank bonuses for which I qualified.
So, I started to look for credit card bonuses.
Step 2: I Leveraged Credit Card Bonuses — Strategically
First, let’s be clear: I pay my cards off in full every month. The idea of paying interest to a bank makes me cringe. Why pay a bank when I can use that money to compound my investments or savings instead?
Here is what my primary bank was offering at the time:
- $200 bonus if I spend $1,000 in the first 90 days
- 5.25% cashback because of my existing banking and brokerage relationship
- 0% interest for 15 months
Spending over $1,000 on a bathroom can take just minutes, so hitting the spending threshold was easy. I applied online, was instantly approved (credit score above 800 and no debt other than my mortgage), and started making the purchases online with free delivery!
Step 3: I Stacked Offers With Home Depot
I bought everything from Home Depot, just a few minutes from my house. As luck would have it, they were offering a deal on their store credit card:
- 10% off purchases over $500
So I applied, got approved, and saved an additional $50 on top of the $200 from my bank card.
By the way, receiving these new credit cards only moved my credit score by about 10 points, so there was no impact.
Step 4: I Let My Savings Earn Interest
Since I’d already saved for the project, I kept the $3,500 for materials in a money market fund tied to my brokerage account at the same bank. It was earning 4.3% interest, not bad for cash I was planning to spend anyway.
While I made minimum payments on the card (around $35/month), that $3,500 continued to earn interest. Having that money in the Money Market Fund made me about $160. I just paid that balance off this month.
The Final Breakdown
Here’s what my savings looked like:
- $200: Bonus from my bank’s credit card
- $50: Home Depot credit card promo
- $160: Cashback at 5.25% on purchases
- $160: Interest earned from my savings
Total savings: $570
All I had to do was spend 30 to 60 minutes researching offers and clicking a few buttons. If I can do it, you can, too.
THE ONE BIG CAVEAT
This strategy only works if you’re disciplined.
If you carry credit card balances or tend to overspend, chasing credit card bonuses can become a trap and, worse, a financial prison. Those “free” cashback rewards are nice but worthless if you pay 20 %+ interest on a carried balance.
I treat credit cards like debit cards. Every dollar I spend is one I’ve already planned for and have cash on hand to cover. If that’s not your style, I’d recommend skipping this approach.
Final Thoughts
Credit card companies offer these incentives to attract new customers in the hope that they will pay interest on the cards. But if you have the discipline, you can use this to your financial advantage.
I now have a brand-new bathroom. By saving about 10% on the project, I’ve demonstrated that with careful planning and commitment, significant savings are possible.
You can use these savings to build an emergency fund, contribute to your retirement account, make an extra payment on an auto loan, or any other financial goal you have in mind. That’s the power of taking control of your finances and making them work for you.
Now, if you will excuse me, we’ve got mulch (on sale) and flowers to buy this weekend. That cashback card? It’s coming with us.
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My latest story below is about how I lost my career, my marriage, and nearly my will to live in my early 50s. But I refused to give up. Through grit, humility, and a long-term plan, I found stability, purpose, and love again — and now, at 65, I’m finally living the life I always dreamed of:
This article is intended for informational purposes only and should not be considered financial, investment, business, tax, or legal advice. You should consult a relevant professional before making any major decisions.
