Making a home theater is a great way to create an entertaining environment. It makes for extra space for when you have guests in town, when there’s a big game on, or when you're just in need of a family movie night. There are a variety of things you’ll want to consider as you take on a basement revamp. From planning to making the actual transformation, keeping key financial components in mind will ensure a flawless transformation.

Below are some tips to keep in mind as you start to plan your basement transformation.

Figure out Cost of Project

Before jumping into everything, you’ll want to think about the total cost projection. The average cost of a basement home theater remodel can range anywhere from $10,000 to $70,000. If you are looking for an even more luxurious basement, you’ll want to plan on spending around $90,000. With this in mind, it’s a good idea to break down the cost of the upgrades you’ll want to make throughout the space to make it exactly what you want.

Some price points you should keep in mind will be the cost of a projector and projector screen. For an idea of the price point here, quality 4K projectors start at $1,500 with a quality screen for home theaters costing at least $1,000. Purchasing and installing theater speakers or a surround sound system could range anywhere from $200- $8,000 depending on the brand and type.

Do some extra research and get price ranges for replacing your floors, painting your walls, furnishing the space, and the lighting you plan to include. If you’re looking to elevate the space even more, get quotes on how much it would be to build a bar space for drinks and snacks for movie nights.

Look into Contractor Cost or Think About DIY

If you’re planning on hiring help or DIY, there are a variety of aspects you’ll want to think through. Depending on the project, the cost of the contractor vary. The amount of labor will affect your over all cost. The greater the project the longer the time line which in retrospect means more labor time. An average person could pay between $800 to $2,212 for a contractor. Again, the scope of the project will directly affect the overall cost.

When you speak with different contractors, keep your finances in mind and an idea of what you are looking to spend. Asking the hard questions about estimates for projects can help set you up for financial success. It also allows you to set a range and prepare your budget for the project to come. In certain situations, you may find yourself negotiating with contractors and designers to see who can give you the best support and price.

After speaking with contractors, you may find that you could do the job all on your own, especially if you are handy and have worked on similar projects before. DIY can be a cheaper option due to you not having to pay for labor costs that come with contractors. You also have complete control over the timeline because you won’t have to rely on an outside team. For those who are taking on their first DIY project a great way to ensure you don’t have to spend extra money due to mistakes, is to watch how to videos to educate yourself on how to properly navigate and complete projects.

Organize Finances

Before developing your budget and taking on any expensive purchases such as buying a projector and other necessary home theater equipment, you’ll want to get your finances in order. You can do this by analyzing your current financial standing. Look into current bills, how much you’ve been saving, what you owe on your credit cards, and different loan payments. If you feel that you are in a good place, then you’ll feel more confident moving forward with these home upgrades.

Help stay organized by creating a spreadsheet or using a budgeting app. Both of these methods can help give you a better idea of how much you’ll need to spend monthly while adding on these extra home improvement payments.

Determine Budget

After picking out a team to work with, you’ll want to set a budget. Balancing a budget beforehand will ease the financial stress that could arise during the basement transformation.

If you’re someone who hasn’t ever had a budget, do some research on various budgeting methods you can use to help hold yourself accountable when it comes to your finances; especially as you take on these extra home improvement projects. Depending on your financial situation, the budgeting method you choose will vary.

Utilizing the information you found when you organized your finances, it’s smart to think about your current monthly payments. On top of your regular budget, develop a section devoted to the extra expenses you’ll be taking on to turn your basement into an entertainment space.

Create a section in a spreadsheet (or wherever you track your budgets). Then develop a list of each item and the price ranges of them. From there, add up all the expenses to get an idea of your potential overall expenditures. Look at that estimate and compare it to your regular costs, to see what you’ll be spending all together.

Explore Financial Options

Once you’ve figured out your financial plan and how you are going to budget moving forward, you’ll want to explore financial options for making these bigger home theater purchases. To start, look into your vendor’s payment plans. Sometimes, stores and contractors may provide payment and installment plans to give extra support and time when needed.

You may also think about using your credit card or a store card. A credit card will allow you to have immediate access to funds that will allow you to pay off purchases upfront. Just keep in mind that whatever you put on your credit card will have to be paid off eventually.

Another option would be applying for a personal line of credit or personal loan. These options could help support bigger purchases for the home items as the projector and screen, or furniture for the space. A home equity line of credit is also another option to look into when you are planning on more construction that will change the foundation of your home and the basement space as a whole.

Depending on your savings situation, you may find that dipping into it would be useful to finance the updates you are making to your home. The money in your savings allows you to pay for items upfront so you won’t have to pay it back later.

However you decide to tackle the finances associated with your home theater updates, make sure to speak with a financial advisor to ensure that you have explored all options and that the direction you decide to go is best for you.

Create the home everyone wants to hang out at with your new and improved entertainment space.