10 budgeting tips

1. Know How Much You Have to Spend
   Set an absolute ceiling and know that most home electronics projects far exceed that initial budget. Figure in plenty of wiggle room. We recommend at least 20 percent. (Key words: "at least.")
2. Make Room For Hidden Costs
   We're talking about wiring, connectors, labor costs if a company is doing the work for you, any building materials required, racks for the equipment, power management devices, perhaps even design fees. That's in addition to the aforementioned 20 percent.
3. Be a Control Freak
   Sure, it's good to know every facet of the operation, but here we're referring to the operation of your electronics. Some professionals recommend spending at least 15 percent of your budget on controls for your system.
4. Not so Fast
   Sticker shock commonly follows the first estimate, and you can do one of two things: Go way over your budget, or scale back your project. For example, you don't have to equip all the rooms with electronics-maybe just wire them for later. You can also slowly build a nice home theater system by starting with a TV and then later adding a receiver, speakers and other upgrades.
5. Go DIY?
   Do-it-yourselfers, we applaud you if you can route high-speed Category 5e cabling, program a home network, and set up and fine-tune a home theater with proper acoustics and video calibration. But if you're the slightest bit intimidated by the prospect of doing so, we recommend hiring a professional.
6. Take Control
   Now you can be a real control freak. Know all the costs of the equipment, the labor and other expenses, and ask questions. If the company you're considering appears annoyed by your interest in what is going into your home, take your business elsewhere.
7. Sign a Contract
   A good custom electronics company will produce a contract. If there isn't a contract, ask for one. If the company can't produce one, go somewhere else. A contract should protect you as well as your home systems installer.
8. Check for Insurance
   The company you hire should have an insurance policy of at least $1 million ($2 million is preferable), offering you protection should anything go wrong in your home. Don't hire a company that doesn't have insurance.
9. Payment Policies
   They vary, but a three-payment process is common. One payment may be made at the official hiring-that's why a contract is so important. A second, large payment is often requested so the company can order your equipment. Final payment should not be made until the systems are fully installed and you are comfortable operating them. That means the company should teach you how to use everything. Make sure that's in the contract.
10. Plan to be Happy
    Be ready to pay that final bill with satisfaction. If you follow the aforementioned advice, chances are, you will.