4 Tips on Where to spend money when building or remodeling—and where to save without sacrificing a great house.

If you're younger in your homeownership journey, here's my advice: don't become house poor trying to keep up with the Joneses.

Comparison is the thief of joy. So, build what you need, splurge on what makes you squeal, and save something for future you—and maybe your next house?

Besides, the Joneses might be in debt, in therapy, and quietly raging about the expensive features they've chosen that don't hold up.

Build the house you need before you decorate the house you want.

You can spend a fortune making a house look beautiful and still end up with a house that doesn't work.

A bad layout. Poor lighting. Not enough outlets. A kitchen that looks great but is miserable to cook in. A bedroom where you can't sleep because the HVAC sounds like a jet engine.

The beautiful finishes, the trendy pendants, the expensive tile—all the things people obsess over because they're easy to see.

Here's the problem: we spend too much money on the stuff that's easy to change and not enough on the stuff that's expensive to fix.

I've been designing residential and commercial spaces for 30 years, and if there's one thing I'd tell you before you build or renovate, it's this:

Spend your money on the design and all the guts of the house that nobody sees in the finished photos.

Then save some money for the pretty stuff.

Paint can be changed. Pendants can be replaced. Cabinet hardware can be upgraded.

Moving a wall, adding electrical after the drywall is up, or fixing a badly planned kitchen? That's a very different check to write.

1. Spend on the Floor Plan and Design Process

This is where I'd start. Before finishes, furniture, or that gorgeous tile you've been saving on Pinterest.

Room sizes, circulation, door swings, window placement, storage, furniture layouts, and the way your family actually lives all deserve careful thought before construction begins.

Your house can have beautiful finishes and still have a terrible layout.

I've had clients come to me apologizing because they already hired a designer but needed additional help figuring out why something wasn't working. That's not an unusual situation. Sometimes people have spent a considerable amount of money on a home and still haven't resolved the fundamental design problems.

That's an expensive way to learn that pretty isn't the same as functional.

A good design process looks beyond individual rooms. It considers how the entire house works together for the people who live there.

• Can you move through the house without constantly crossing someone else's path?

• Do the doors swing into usable space or interfere with furniture?

• Are the windows placed to bring in natural light, provide views, and preserve privacy?

• Does the kitchen work for the way you cook?

• Is there enough storage where you actually need it?

• Do the furniture layouts make sense for the room proportions?

• Have you considered how you'll use the house as your needs change?

These decisions influence everything that comes afterward.

 2. Spend on the Guts of the House

Let's talk about the unsexy stuff: HVAC, electrical, plumbing, insulation, windows, waterproofing, and ventilation.

Nobody is scrolling through Instagram hoping to find a gorgeous picture of plumbing rough-ins. But these systems determine whether your home is comfortable, efficient, durable, and expensive to maintain.

You don't see most of them when the house is finished. That's exactly why you need to get them right.

HVAC, ventilation, and comfort

An expensive HVAC unit isn't automatically a better HVAC system. Correct sizing, thoughtful duct design, proper installation, ventilation, humidity control, and commissioning matter enormously.

Think about where the supply ducts and returns will go. You don't want a noisy supply register blasting air over your pillow every night. Consider where equipment will be located and whether it will disturb bedrooms, living spaces, or outdoor entertaining areas.

Also consider kitchen exhaust, bathroom ventilation, and the overall performance of the building envelope.

These aren't glamorous decisions, but they affect how your home feels every single day.

Electrical and lighting planning

This is a big one, and I can't emphasize it enough.

Look around. We are power hungry!

We need outlets for appliances, computers, chargers, televisions, home offices, and whatever technology we'll be using five years from now. We need thoughtful switching, task lighting, accent lighting, and exterior lighting.

Plan your electrical and lighting before the walls close. Think about how you'll use each room, where furniture will go, what needs dedicated circuits, and which lights should operate together or separately.

A layered lighting plan considers ambient, task, and accent lighting. It also accounts for fixture placement, beam spread, color temperature, dimming, and the way light interacts with the architecture and finishes.

An extra outlet is relatively inexpensive during construction. Adding one after the house is finished can be a nuisance—and sometimes a surprisingly expensive one. 

While you're planning, consider low-voltage wiring for future lighting applications, technology, or other uses where appropriate. Installing the necessary wiring during construction can give you options later without opening finished walls.

Plumbing, insulation, and windows

It hurts to spend thousands on stuff that you'll never see again inside those walls. But, Insulation and air sealing affect comfort and energy use, which affects your future utility bills.

Windows influence natural light, views, weather resistance, and energy performance as well. Plus, they are an integral part of your design!

Plumbing choices and the design of bathrooms can affect both function, safety of family members and future maintenance. Think about what the fixture needs to do first, then how it looks! Form after function!

3. Spend on Function and Storage

A pretty kitchen is nice. A kitchen where two people can work without bumping into each other is better.

Kitchen workflow, cabinet organization, pantry shelving, closet layouts, bathroom storage, and usable counter space deserve attention before you start choosing finishes.

Think about how you actually live. Where do groceries land when you come home? Where do you store small appliances? Can you open the dishwasher without blocking a walkway? Is there enough room for someone to prep dinner while another person makes coffee?

In bathrooms, consider where toiletries, towels, and cleaning supplies will go. Where's the hairdryer or toothbrush getting plugged in?

In closets, think about what you own and how you prefer to store it. In entryways, make room for the things people inevitably drop when they walk through the door. Think through every daily, weekly and holiday routine in your home.

You don't necessarily need expensive custom organizers in every closet. What you do need is to evaluate what you are storing and design closets for that. If you have lots of blouses and skirts, double hanging rods will maximize your space.

You don't know until you take an inventory! Plan for storage rather than assuming you'll figure it out after move-in.

4. Spend Wisely on Things You Touch Every Day

Not every visible item is disposable, and not every expensive item is worth the money.

There are certain things you'll interact with every day: faucets, door handles, cabinet pulls, flooring, stair railings, countertops, tables, and windows.

You'll notice quality when you use something. A faucet that feels good to operate, a door handle with a satisfying feel, or a solid wood table can make everyday life special.