You've committed yourself to an upgrade for your home. Perhaps you're doing a complete overhaul of the kitchen or bathroom, or bringing in professional landscapers to make a beautiful lawn.

Whether you've been saving up money for the job or planning to borrow against your home's equity, you'll want to stay within the budget you set for home improvements. As nice as it is to have a newly renovated home, you won't be too pleased if the work cuts into your bank account more than you anticipated.

It is important to set realistic expectations when planning a home improvement project. Managing your costs and knowing when to make sacrifices will also help you stay at or below budget.

Planning

You'll no doubt have an idea of the renovations you'd like to do. But if you only set a dollar amount for the work and don't create a detailed plan, you're much more likely to exceed your budget.

There are plenty of factors to take into consideration in any home improvement work, ranging from paint colors to the type of cabinets you'd like to install. Bud Dietrich, writing for the home design site Houzz, says homeowners who haven't planned out a project will be under more pressure to make quick decisions. Alternatively, they may try to leave these decisions to the builder. If they aren't happy with the result, they may request alterations in the middle of the job that can drive the price up.

Don't overlook any of the costs involved in the project. Labor and materials will make up the bulk of the expenses, but you'll also have to budget for things like delivery, permit fees, and taxes.

Determine how much you should invest in the project. Vera Gibbons, writing for the real estate site Zillow, recommends that you set a limit based on what percentage of your home's value the room accounts for. Look into how much value the project will add, but don't expect that the cost of the renovation will result in a corresponding increase in value.

Knowing how your home is laid out can give you an idea of what requests might increase prices. Benjamin Feldman, writing for Credit.com, says your costs will be higher if you have to take out walls, move or install new connections such as natural gas hookups, or otherwise make any major changes. If you can make a satisfactory plan that utilizes the existing layout, you can complete the job for much cheaper.

Renovations can uncover other work that needs to be done. For example, you might discover asbestos that need to be removed or old electrical wiring that should be updated. These issues are particularly common in older homes.

Padding your budget can help you meet any unexpected costs. Alaina Tweddale, writing for the National Association of Realtors' home improvement site HouseLogic, says setting a budget 10 percent higher than the actual anticipated costs can be helpful. For older homes, which are more likely to have hidden problems, you may want your buffer to be as high as 25 percent.

Bidding

Many homeowners are interested in doing some renovations on their own. However, you should know your limits. Perhaps you're capable of installing a set of shelves, but you might want to leave the plumbing work to a professional.

Feldman says it's best to talk to a professional first if you plan to do any work yourself. You might be able to lower your costs if you are able to do some demolition work, painting, post-construction cleanup, or even just purchase the necessary supplies.

Get quotes from several contractors before choosing one. The home improvement site HomeAdvisor recommends taking your time with this process and getting bids from at least three different companies.

Be aware of what is covered in each quote. The lowest bid may be the most appealing, but you should make sure the contractor has a good reputation and won't cut corners during the project. You should also make sure the quote covers the entire scope of your renovation and does not omit any costs.

Making cuts

You'll have some big ideas for the home improvements you'd like to complete, but this work can easily result in major costs. To stay within an affordable budget, you may have to reign in your wish list.

See if there are any discounts on appliances, materials, or other items. Feldman says you might be able to reduce the cost of the project significantly if you choose a less expensive but still appealing option.

If you're renovating a living room or bedroom, you may be tempted to get new furniture as well. However, these purchases can easily add several thousand dollars to your final bill. Putting on a slip cover or reupholstering a piece are both less expensive ways of giving old furniture a new look.

Stick to the original scope of the project. You should resist the temptation to include some smaller, unplanned upgrades. Even if the work seems minor, it might add a significant amount to your costs.

However, you can occasionally treat yourself. Tweddale says you can choose some areas to splurge, such as the addition of custom cabinets or an intricately designed backsplash. As long as you've managed to bring costs down elsewhere, you might still be able to make this expenditure while staying below your spending cap.