The world of smart homes may seem like a luxury that's reserved for only those with deep pockets, but what if I told you it's possible to achieve the same level of convenience and automation without spending a fortune? It is true that you'll have to spend some money to get the smart home ball rolling, but starting a smart home project doesn't have to break the bank. There's a whole world of affordable solutions, clever workarounds, and budget-friendly gadgets out there that'll help you stretch your dollars in the smart home, and all you really have to do plan your automation and follow some known tips and tricks to get started on your smart home journey on a budget.

Plan your smart home first

As simple as making a list of the essentials

It's easy to get overwhelmed with all the smart home gadgets and accessories out there on the market, so the first step, I believe, is to create a plan of action. It's important to plan your smart home and identify the areas of your home you'd like to automate. Do you simply want to invest in smart lighting solutions, or do you also want to prioritize security systems? Knowing all these play a crucial role in determining the kind of products you'll need. It's also good to start slowly, focusing on one area at a time, and then expanding later.

Having a clear plan for your smart home journey will also help you allocate the budget more efficiently, ensuring you're making the most of your money. I, for one, started with smart lighting before moving on to other areas like entertainment, home security, and more. If you don't know where to begin, then below is a list of products I recommend getting started with:

  • A hub to control all smart home devices.
  • Smart bulbs and other lighting solutions
  • Smart plugs and outlets

Start with a basic smart speaker

These can serve as the heart of your setup

One of the first things I picked up for my smart home setup is a smart speaker, particularly the Amazon Echo, which gives me access to Alexa. You can also go with Apple's Homepod Mini if you are into Apple products and want to use HomeKit. Voice assistants may not be as popular as AI chatbots right now, but they're still very relevant and are yet to be fully replaced. I use my Echo Dot speaker with Alexa to control various smart home devices, including all my lights, TV, and even non-smart appliances thanks to smart plugs from Kasa. There are plenty of other smart home hubs, but even a tiny Echo Dot or a Homepod Mini can serve you very well as a budget option.

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Explore open-source and DIY solutions

Get your hands dirty and save some money

Buying open-source and DIY solutions instead of proprietary smart home hub can also help you save a ton of cash on a smart home project. Using the Home Assistant open-source software on the Raspberry Pi 5 SBC, for instance, is a great way to operate all your smart home devices. You can get a capable SBC for easily under $50, and you can use it to set up something that rivals more expensive smart home hubs and even home servers. Setting a Raspberry Pi or SBCs may demand more work, but it's good for a weekend DIY project if you don't mind getting your hands dirty. You can even use a spare computer as a home server for this and have it control a range of smart home devices by creating automation rules. A DIY home server is next on my list, but I've got boh a smart speaker and a Raspberry Pi set up to automate things in my living space.

Alternatively, you can also pick up smart home sensors to integrate with your DIY smart home setup. Things like motion detectors, temperature sensors, etc., are known to work very well, and they can also be integrated with DIY smart home setups. I've got a couple of motion detectors and temperature sensors that trigger certain automations, and they're easy to grab and work very well. Notably, you can also consider using your old smartphones and tablets as a control panel for your smart home hub, if you got those lying around.

Don't fall into the subscription trap

Recurring payments quickly add up

Source: Unsplash

I highly recommend distancing from smart home products that make you buy a subscription for access to the full range of features. I made a conscious decision to not include any products on my list that need a subscription, and I strongly suggest you do that same, at least initially when you are already stretching your budget thin. The subscription cost may not seem like much in the grand scheme of things, but the recurring costs can quickly add up for things like security cameras, doorbells, and more. There are plenty of manufacturers out there, like Wyze, TP-Link, Blink, and more, offering great products without the new need for a subscription.

Even if you end up buying a product that needs a subscription, then evaluate whether that subscription is necessary for your usage. There's a good chance that you may not need all the pro features that are offered by a paid subscription of a particular product, and that can greatly help you cut down on recurring monthly or annual payments.

Stay away from bundles deals

Only buy what you need

Bundle deals may seem lucrative, but they're often made to push things that you may not necessarily need for your setup. Choose your bundles very carefully, and only pick the items you need. I'd say it's better to stick with individual products instead of buying in bundles, to steer clear of impulse purchases. It also goes without saying that you should be on the lookout for deals on big days like Prime Day, Black Friday, Cyber Monday, and more, because that's typically when I've seen a lot of smart home devices available at dirt cheap prices.

Devices I've added to my smart home collection

And those are some tips I've followed over the years to add convenience, comfort, and efficiency to living space. The Echo Dot speaker at the heart of my smart home setup controls pretty much everything for me. I also managed to set up a Raspberry Pi recently for the same thing, and I highly recommend considering it if you're just getting started and don't want to spend money on a hub or a speaker with a voice assistant. Below is a list of smart home devices, which includes both things I've already got in my collection along with stuff that I have on my wishlist. They're all fairly affordable and won't break your bank while delivering a good experience.

  • Amazon Echo Dot (5th Gen)
    Display
    No
    Dimensions
    3.9 x 3.9 x 3.5 inches
    Weight
    304g
    Clock
    No
    Integrations
    WiFi, Bluetooth Low Energy Mesh, and Matter controller
    Audio
    1.73" front-firing speaker
  • Kasa Smart Plug HS103 3-Pack
  • Kasa Smart Light Bulbs 4-Pack (White)
  • Raspberry Pi 5
    CPU
    Arm Cortex-A76 (quad-core, 2.4GHz)
    Memory
    Up to 8GB LPDDR4X SDRAM
    Operating System
    Raspberry Pi OS (official)
    Ports
    2× USB 3.0, 2× USB 2.0, Ethernet, 2x micro HDMI, 2× 4-lane MIPI transceivers, PCIe Gen 2.0 interface, USB-C, 40-pin GPIO header
    GPU
    VideoCore VII
    Starting Price
    $60
  • Wyze Cam v3