One of the biggest concerns when building a custom home is going over budget. However, YOU don’t have to fear this because I know it’s possible to build within (or very close to) budget … you just need to know where to splurge and save when building your home.
In this episode, I’ll walk you through the best areas (in general) to splurge and save when building a custom home.
I’ll also share the choices I personally made while building my own home—because sometimes it helps to hear real-life examples. 🙂
Links Mentioned in this Episode:
👉 Want help figuring out exactly where YOU should splurge and save on YOUR home? Get the SPLURGE + SAVE PLANNER … a guided workbook to help you get CRYSTAL CLEAR on the best places for YOU to splurge and save on your dream home.
Below is the full transcript for this podcast episode.
One of the biggest concerns when building a custom home is going over budget. However, YOU don’t have to fear this because I know it’s possible to build within (or very close to) budget … you just need to know where to splurge and save when building your home.
In this episode, I’ll walk you through the best areas (in general) to splurge and save when building a custom home.
I’ll also share the choices I personally made while building my own home—because sometimes it helps to hear real-life examples. 🙂
Welcome back to the Before You Build podcast. I’m your host Carrie Barker (aka Caroline On Design), and today in episode 80, I’m sharing the best areas (generally speaking) to splurge and save when building a custom home.
Now … keep in mind that these are all just general ideas.
It doesn’t mean all of these are the best places for YOU to splurge or save.
It all comes down to what is most and least important to YOU in YOUR house.
In the simplest terms …
Whatever is a must-have for YOU is where you should splurge.
Whatever YOU don’t care about that much is where you should save.
So take the ideas in this episode that make sense for your home build,
Where to Splurge when Building a House
A good rule of thumb is to splurge on things that are very important to you … and/or are difficult (or expensive) to change later.
1. Square Footage
If your lifestyle or family size requires more space, square footage is a great place to invest.
Adding onto your home later is costly (and quite disruptive to your household), so invest in your square footage if that’s a need for your family.
2. Kitchen
Your kitchen is the heart of your home—and one of the best places to splurge for two reasons:
- It delivers a strong return on investment (ROI) when you sell, and
- It’s where you (and your family) will likely spend most of your time
So you want this to be a place you love and feel comfortable in.
Some great places to splurge in your kitchen:
✅ High-quality kitchen cabinets and countertops
✅ Upgraded appliances and plumbing fixtures (*if* these are important to you)
✅ A large kitchen island
✅ A walk-in pantry
✅ Plenty of windows for natural light
3. Primary Bathroom
Like your kitchen, a well-designed primary bathroom holds value, and it’s a place you want to feel comfortable.
When it comes to your primary bathroom, consider splurging on:
✅ High-quality cabinets, countertops, plumbing fixtures, and light fixtures
✅ Thoughtful (and functional) square footage
✅ A spa-like shower or freestanding tub (if this is something you want)
🔍 Side note – you don’t have to have a tub if you don’t want one. I don’t have one and I’ve never once missed it in 11+ years in my home.
4. Ceiling Height
High ceilings can make a home feel more spacious and luxurious—and they’re nearly impossible to change later. So if high ceilings (or sloped ceilings or vaulted ceilings) are important to you, this is a great place to splurge.
5. Exterior Materials
Your exterior is your home’s first impression and its first line of defense against the elements.
If possible, invest in the highest-quality exterior finishes you can afford. It will boost your curb appeal and the longevity of your home. Plus, it’ll just look SO. MUCH. BETTER.
6. Flooring in Main Living Areas
While great flooring exists at all price points, consider splurging in high-traffic, highly visible areas like:
✅ Foyer
✅ Family room
✅ Kitchen
✅ Dining room
✅ Powder room
Side note – you can ‘save’ on flooring in other areas of your home that aren’t visible to guests.
7. Light Fixtures in Key Areas
If your lighting budget is tight, focus your lighting allowance on statement areas:
✅ Entryway
✅ Dining room
✅ Kitchen
✅ Powder room
✅ Family room
You can save on light fixtures in your bedrooms, closets, pantry, mud room, office, etc.
8. Plumbing Fixtures (in Key Spaces)
High-quality plumbing fixtures are worth the splurge in:
✅ Your kitchen
✅ Your primary bathroom
✅ Your powder room (since guests will see it!)
So let’s quickly recap the best places to splurge in a custom home.
👉The best places to splurge are your square footage, kitchen, primary bathroom, ceiling height, exterior materials, flooring in the main areas of your home, and plumbing fixtures in your kitchen, primary bathroom, and powder room.
All right, now let’s move on to the best areas to save in a custom home.
Where to Save when Building a House
A good rule of thumb? Save on things that are NOT very important to you … and/or are easy (and inexpensive) to upgrade later.
1. Secondary Bedrooms
Kids and guests don’t need massive bedrooms with high-end finishes. Keep these rooms simple and functional.
2. Secondary Bathrooms
Aside from your powder room, your secondary bathrooms are a great place to cut costs.
Within your secondary bathrooms, save on:
✅ Square footage
✅ Choose standard tub/shower combos (just hide it with a stylish curtain!)
✅ Choose basic plumbing fixtures and lighting fixtures
3. Secondary Closets + Pantry
Wire shelving works just fine—for now. You can always upgrade later! If your budget is tight, this really is a great way to cut out some cost.
4. Laundry Room + Mudroom
While functionality is important, you don’t need top-tier finishes in these utility spaces.
If your budget is really tight, consider using an inexpensive Ikea unit as your ‘cubbies’ to store coats, backpacks, shoes, etc.
You can always come back in the future and have custom cabinetry made for these areas.
Another idea is something that we did in our home … we purchased an inexpensive countertop from a big box store so that we could splurge on the counters in our kitchen and primary bathroom.
5. Custom Details (Built-Ins, Trim Work, etc.)
Built-in shelving, window seats, and trim work can ALWAYS be added later, so these are great areas to save if your budget is tight.
6. Cabinet Hardware
Cabinet hardware is one of the easiest (and cheapest) upgrades you can make in the future. If needed, opt for budget-friendly knobs and pulls now and swap them out later. Easy peasy!
7. Finished Basement or Bonus Room
Want to save thousands? Leave unfinished spaces unfinished for now.
If you can’t afford to finish your basement and/or a bonus room while you’re building, it’s OK.
You can always rough in plumbing and any other structural needs and come back to finish the space in the future.
💡 Pro Tip: If you plan to finish your basement later (or a bonus room above your garage), add a second staircase in your garage during construction so that in the future, contractors can access your basement or bonus room without walking through your home.
(We did this, and it was worth every penny!)
All right, let’s quickly recap the best places to save in a custom home.
👉The best places to save are your secondary bedrooms, bathrooms, and closets, as well as your mud room, laundry, custom details, cabinet hardware, and large bonus spaces (such as a basement or bonus room).
Where I Personally Splurged and Saved
To give you some real-life inspiration (and ideas), I’m going to share where I splurged and saved in my own custom home when building.
Where I Splurged:
✔ Kitchen & Primary Bath Cabinets: I splurged on white painted inset cabinets in my kitchen and stained inset cabinets in my primary bathroom (psst … inset is the most expensive style of cabinet)
✔ Closet System: I also splurged on a high-end system in my large walk-in primary closet
✔ High-Quality Stair Runner: I chose pricey flooring for my stairs because it’s a focal point
✔ Exterior Materials: I splurged on high-end vinyl shake siding on all four sides of my exterior (since we live on a corner and my home is visible from the front, side and back)
✔ Trim Work & Built-Ins: I splurged on tons of custom trim work throughout my entire home (because this was a must-have for me)
✔ Pantry Shelving: In our pantry, we upgraded to laminate instead of wire shelving
Where I Saved:
✔ Office & Secondary Cabinets: I opted for overlay cabinets instead of inset to save money in my office, in our combined mud room and laundry room, and in our secondary bathrooms
✔ Basement: We delayed finishing our basement for two years because I wanted to prioritize my budget for our main-floor square footage and our extensive trim work
✔ Daughters’ Bathrooms: We opted for builder-grade plumbing fixtures and lighting fixtures in our daughters’ bathrooms; we also used a basic tub and shower combo in their bathrooms (and I added adorable shower curtains to hide the basic shower combo)
✔ Basic Light Fixtures: We also opted for builder-grade light fixtures in all of the secondary bedrooms, secondary bathrooms, secondary closets, the pantry, mudroom, etc.
✔ Appliances: We chose mid-grade appliances because high-end appliances were NOT important to us when we built (and, honestly, they still aren’t important to us)
So, you might notice a common theme in where I chose to splurge and save.
I splurged in areas that we spend the most time in and that guests actually see.
I saved in the areas that we spend the least time in and that guests rarely see.
Next Steps
Building a custom home doesn’t mean you have to go over budget.
It also doesn’t mean you have to sacrifice your must-haves to stay on budget.
It doesn’t have to be either-or!
The key is to get very clear on what truly matters to YOU.
📌 Remember: Splurge on what’s most important to you and/or hard to change later. Save on what’s least important to you and/or easy to upgrade later.
Next steps?
Knowing where to splurge and save is a great start, but staying on budget while building your dream home (without sacrificing those must-have splurges) takes some strategy.
I’m spilling all the details on my STRATEGY for building within budget and without regrets in my brand new, free class, How to Build a Custom Home Within Budget—And Still LOVE Your Home (#noregrets).
If you’re building a custom home in the near (or far) future, you will NOT want to miss this 100% free, one-hour on-demand class.
Click here to grab your seat here.
I’ll see you there. 🙂
👉 Want help figuring out exactly where YOU should splurge and save on YOUR home? Get the SPLURGE + SAVE PLANNER … a guided workbook to help you get CRYSTAL CLEAR on the best places for YOU to splurge and save on your dream home.
