Prioritizing your must-haves is key. You may be willing to settle for vinyl flooring if it means you can get a higher grade of cabinets. Or, you may sacrifice maple cabinets in favor of alder if it means you can finally attain your longstanding desire for bathroom floors with radiant heating.

Budget for what you really want, but make sure you shop around. Get at least three bids from contractors or other professionals. This will not only clarify the costs, but each professional may offer their own money-saving suggestions.

Theres real value in knowing where you can cut costs and where you should pay up for the high-end materials or professional services. Here are 10 tips to get you started.

1) Rethink the scale of your improvements. Consider whether cosmetic changes such as replacing a rooms flooring or repainting might suffice. These projects generally can be done for $1,500 to $3,000.

2) Work within the existing exterior walls and roof. Anytime you can avoid expanding outward -- altering the roof, pouring foundations, extending heating and electrical systems and much more -- you stand a better chance of keeping costs in check. The difference between a room addition and a room remodel is significant: The average cost of a mid-range bathroom remodel is about $315 per square foot. For a mid-range bathroom addition, expect to pay $480 per square foot.

3) Plan bathrooms and kitchens to share major drains, vents, and supply pipes. Doing so can dramatically reduce the cost of plumbing labor and materials, often saving you $3,000 or more. Similarly, you can save by arranging plumbing fixtures against one or two walls.

4) Choose projects with a high return on investment, particularly if you intend to sell your home within the next few years. Minor kitchen and bath remodels are almost always winners. In general, projects that lighten and brighten your home are excellent investments. For more about this, see "The hidden financial truth about remodeling" on MSN Money and "High-value home additions" on HomeTips.com.

5) Consider using cheaper materials. Sometimes, less-expensive materials do an excellent job of mimicking their higher-priced counterparts. Oak strip flooring may cost $13 per square foot installed, but a laminate floor that looks almost identical can be installed for from about $7 to $10 per square foot.

6) Dont cut corners on highly visible work, especially details and surfaces. Dont skimp on drywall, for example. Quality drywall installation for a 12-foot-by-12-foot room can cost about $1,300. A cheaper job for the same room may run about $1,050. But bumpy wall surfaces, hammerhead dimples and nail heads popping up from the surface arent worth the $250 difference. Similarly, it pays to spend a few hundred dollars more for premium finishes on cabinetry and woodwork.

7) Know what can be put off. If youre running tight on money, hold off on things that are easiest to add later. You might install wiring for in-the-wall speakers now, but add the audio/video components later. Hardware, lighting controls and fixtures, appliances -- even a furnace -- are all relatively easy to upgrade later as long as you plan for the change now.

8) Protect yourself from cost overruns. Hire only qualified, reliable professionals and detail every aspect of the work in a written agreement before the first hammer pounds a nail. (For more on this, see "Types of home building contracts" at HomeTips.com.)

9) Dont overpay for financing. Youll have to do the math to figure the best option. Refinancing with low, fixed interest rates will allow you to pay for your remodel over the life of your mortgage, but setup costs may be higher than for other types of loans. A home-equity loan is usually very inexpensive to set up but will have a slightly higher interest rate. And if you have little equity in your property, a more-expensive home-improvement loan may be your only choice. (For more on this, see "Smart and stupid ways to pay for your remodel.")

10) Hire yourself. Labor often accounts for half (or more) of a major projects cost, so you can save significantly by doing the work yourself or acting as the contractor. Just be aware that this can be a big job, and you cant always do it cheaper than a pro. Your time has value, and you may pay more for materials and subcontractors. Calculate the value of your time on MSN Money, and keep this figure in mind when researching the costs of hiring a pro.

For more home tips, go to hometips.com.