Imagine coming home and having the lights turn on automatically, your favorite music playing, and the room temperature set just how you like it — all without lifting a finger.
You can enjoy these modern comforts with advanced technology and affordable gadgets. Smart homes offer convenience, energy efficiency, and improved security that make life easier, safer, and more fun.
You don’t have to invest thousands of dollars to upgrade your home. We have an action plan for you to make your home smart within $500 only!
Step-By-Step Guide To Set Up a Smart Home
Here’s your actionable smart home upgrade plan under $500.
Step 1: Define Your Smart Home Goals
- List key areas to automate:
- Lighting
- Security
- Climate control
- Entertainment
Step 2: Strengthen Your Wi-Fi Network
- Action: Upgrade to a mesh Wi-Fi system for consistent coverage.
- Budget option: Eero or Google Nest Wifi
Step 3: Set Up a Smart Hub
- Action: Choose a hub if your devices use Zigbee or Z-Wave.
- Options: Samsung SmartThings, Hubitat, Philips Hue Bridge
- Voice control setup: Pick your ecosystem:
- Amazon Alexa, Google Assistant, or Apple HomePod
Step 4: Install Smart Lighting
- Action: Replace key bulbs with smart LEDs (like TP-Link Kasa, Philips Hue White, or Wyze Bulb).
- Tip: Focus on high-use areas like the living room or bedroom.
Step 5: Add Smart Plugs & Smart Appliances
Action: Plug non-smart devices into smart plugs (e.g., Kasa Smart Plug, Wyze Plug)
Use plugs for lamps, coffee makers, fans, etc.
Step 6: Secure Your Home
- Smart Cameras:
- Install Wyze Cam for indoor/outdoor monitoring.
- Smart Door Locks & Video Doorbells:
- Consider Wyze Lock or Eufy Security Video Doorbell.
- Motion Sensors & Alarms:
- Use Aqara, Wyze Sense, or Ring Alarm sensors.
Step 7: Automate Climate Control
- Action: Install a smart thermostat (budget: Wyze Thermostat or Amazon Smart Thermostat).
- Enables scheduling and remote control.
Step 8: Create Smart Routines
- Action: Use your hub/app to automate:
- Morning/evening lighting
- Away mode for security
- Climate settings based on time or motion
Step 9: Test & Optimize
- Action:
- Test device reliability and coverage
- Adjust automations for convenience and energy savings
- Expand gradually based on needs and budget
Read more: 5 Best Smart Home Gadgets You Can Manage with your Mobile
Here’s how to Upgrade to a Smart Home Under $500
Let’s break down your smart home transformation with a mix of DIY-friendly devices, affordable bundles, and multi-function tools.
1. Smart Speakers/Hubs
Best Pick: Google Nest Mini (2nd Gen): $49
A smart speaker will act as the central hub for controlling your devices. The Google Nest Mini (2nd Gen) is a compact yet powerful smart speaker that delivers rich audio, stronger bass, and more volume.
You can easily ask your Google Assistant to play your favorite music from Spotify, YouTube Music, or simply stream music from your phone.
It will also help you manage your day with features like timers, alarms, personalized reminders, commute updates, thanks to Voice Match.
With just your voice, you can control your home — dim the lights, adjust the thermostat, pause the TV, or control any of the thousands of compatible smart devices.
2. Smart Lighting
Best Pick: Wyze Bulb Color (LB100) [Pack of 2: $22.99]
Brighten your space with smart lighting – an easy and enjoyable first step in your smart home upgrade. Features like dimming, brightening, and scheduling offer both style and convenience at your fingertips.
The Wyze Bulb Color lets you customize lighting to match any mood, from cozy warm tones to vibrant party colors. Set timers for automatic on/off, helping you save electricity.
At just $22.99 for a two-pack, it’s an affordable and impactful introduction to home automation, making your home smarter and your life easier. If you want to add more smart lights in your home, you get a few more packs to add in the spaces that are used more.
3. Smart Plugs
Best Pick: Wyze Plug [$15 – $25]
Smart plugs are one of the most affordable ways to make your home smarter. They let you control appliances from your phone or with just a voice command. Without spending much, smart plugs make everyday tasks easier and more convenient.
Just plug it into a socket, connect it to Wi-Fi, and you can control any device through your phone or by using your voice with Alexa or Google Assistant. Moreover, it works with Wyze Sense for motion-based automation and connects with other smart devices using IFTTT.
4. Smart Security
Best Pick: Wyze Cam V3 Pro [$34.98]
Next gadget to revamp your home into a smart home is the Wyze Cam V3 Pro. It is a budget-friendly yet powerful smart security camera that adds strong protection to your home without breaking the bank.
Priced around $35, it offers 2K video resolution and a special starlight sensor that provides clear, full-color footage even in low light. Moreover, it comes with a motion-activated spotlight for better visibility and a built-in siren to help deter intruders.
Designed for both indoor and outdoor use, the camera is weather-resistant (IP65 rated), though an outdoor power adapter is sold separately. Get this reliable and affordable security camera and make it a smart addition to your home upgrade plan.
5. Smart Thermostats
Best Pick: Amazon Smart Thermostat [$79.99]
Amazon Smart Thermostat is a smart and affordable way to upgrade from a traditional thermostat while helping you save energy and money. It is designed with Honeywell technology, which makes it reliable and easy to use.
This smart home automation device automatically adjusts to your preferred settings for home, away, and sleep modes. Plus, it’s ENERGY STAR certified, which means it can help cut down your energy bills – saving you an average of $50 a year, according to EPA estimates.
You can also pair it with compatible Echo devices or the Amazon Smart Air Quality Monitor to manage hot or cold spots in your home.
6. Smart Doorbells
Best Pick: Wyze Video Doorbell V2 [$39.98]
Worried about home security? Smart doorbells have you covered — they let you see, hear, and speak to visitors directly from your phone. The Wyze Video Doorbell V2 is a smart and budget-friendly option among all. It brings extra security and convenience to your front door. With crystal-clear 2K head-to-toe video and color night vision, you’ll be able to see every visitor and package delivery in detail, day or night. It’s built to handle rain, wind, or shine with an IP65 weatherproof rating.
The two-way audio feature, instant alerts, and the built-in voice deterrent boost your home security — all for just $39.98. The doorbell also supports 24/7 local video recording with a microSD card (sold separately), and its pre-roll recording feature captures the moments just before motion is detected, so you never miss a thing. Just connect it to your existing doorbell wiring (16–24VAC, 10VA+), and enjoy peace of mind around the clock.
Smart doorbells offer peace of mind by letting you see, hear, and speak to visitors directly from your phone. The Wyze Video Doorbell V2 is a smart, budget-friendly choice that adds both security and convenience to your front door.
With crystal-clear 2K head-to-toe video and color night vision, you can clearly see every visitor and package delivery, day or night. Its IP65 weatherproof rating means it’s built to withstand rain, wind, or shine.
Additional features include:
- Two-way audio for real-time communication
- Instant alerts and a built-in voice deterrent to enhance security
- Pre-roll recording to capture moments just before motion is detected
- 24/7 local video recording with a microSD card (sold separately)
Easy to install, it connects to your existing doorbell wiring (16–24VAC, 10VA+). All this for just $39.98 — a small price for round-the-clock peace of mind.
7. Smart Home Security Sensors
Best Pick: (A) Aqara Door and Window Sensor P2 [$29.99]
Upgrade your home security with smart home security sensors that offer both protection and convenience. The Aqara Door and Window Sensor P2 is a compact and reliable smart security device that monitors the open/close status of doors, windows, and drawers with high-precision sensing.
What sets this sensor apart is its Matter compatibility that allows easy integration into top smart home ecosystems like Apple HomeKit, Amazon Alexa, and Google Assistant. You can even use voice commands to ask about the status of doors or receive spoken alerts via Siri, Alexa, or Google.
Beyond simple monitoring, the P2 also supports local automation. This feature allows it to trigger other smart devices, like adjusting a thermostat or turning on a security camera, without needing cloud access. This ensures faster response times, better privacy, and reliable performance even during internet outages. In short, the Aqara Door and Window Sensor P2 is a smart, privacy-focused, and highly adaptable security upgrade for any smart home.
Best Pick: (B) Wyze Sense Motion Sensor [$20.98]
The Wyze Sense Motion Sensor is an affordable ($20.98) and compact smart home device. It is designed to increase home security by detecting movement in key areas of your home. When paired with a Wyze Hub and the Wyze app, it sends instant alerts to your smartphone if motion is detected. As a result, you can monitor activities around your house in real time.
Wyze motion sensor is Ideal for entryways, hallways, or restricted spaces. It can also trigger other Wyze devices, such as cameras or lights, to activate, deterring potential intruders. Its easy setup, long battery life, and integration with Wyze’s smart home ecosystem make it a cost-effective way to bolster home security and provide peace of mind.
8. Smart Window Covering
Best Pick: SwitchBot Curtain 3 [$89.99]
The SwitchBot Curtain 3 ($89.99) is a smart window covering device perfect for bedrooms and light sleepers. This device transforms manual curtains into automated, voice- and app-controlled coverings with no tools or drilling required. Simply hang it, attach the magnets, and connect to the app for a setup that takes just minutes. Its upgraded motor delivers 2x more power, smoothly handling heavy curtains up to 15kg, while magnetic positioning ensures precise movement without light gaps. However, it is not compatible with extendable rods thinner than 5/8 inch.
By integrating this innovative smart home gadget, you can control it remotely via the app, set schedules for automated opening/closing, or use voice commands with Alexa, Google Assistant, or Siri. So, what’s the wait for? Get your Switchbot Curtain 3 and automate your smart home like a pro.
Final Thoughts
You don’t need to spend a fortune to enjoy the benefits of a smart home. With smart planning, you can build a fully functional system for under $500. Start with key devices and expand over time. Focus on affordable, high-value smart home DIY upgrades that improve convenience, security, and energy savings.
Begin with essentials like smart lighting, plugs, or a security camera, then add more features as your needs (and budget) change. By choosing the right ecosystem and optimizing automations, you’ll create an efficient smart home with a futuristic touch while staying on budget.
