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How to start a smart home on a budget: the first five things to buy

Where to start with a smart home without overspending. The order we’d buy things in, what each step gets you, and what to skip.

By the Plugged-In Home editors · Updated

Quick answer

Start with the voice assistant or app you already have, then add two or three smart plugs for lamps, a couple of smart bulbs where you want dimming, and a leak sensor. Add a video doorbell or robot vacuum once the basics work. Buy Matter-certified plugs and bulbs so they work with any app, and skip hubs and exotic gadgets until you know what you actually use. On iPhone, budget for a HomePod mini or Apple TV, which Apple Home needs to run automations.

Key takeaways
  • Your phone is already a smart home controller. You don’t need a speaker to start.
  • Smart plugs give the most automation per dollar.
  • Buy Matter-certified where you can, so nothing gets stranded if you switch platforms.
  • Add expensive devices only after the cheap ones prove useful.
  • Apple Home is the exception: automations need a HomePod or Apple TV at home.

Before you buy: three quick checks

Two minutes now can save a return:

  1. 1Check your Wi-Fi where the devices will go: load a video on your phone next to the lamp or sink you have in mind. Most budget plugs and bulbs only connect on 2.4 GHz Wi-Fi, and a weak spot means dropouts.
  2. 2Think about who else lives with you. Pick an app that works on everyone’s phones, and keep lamps and lights easy to switch by hand.
  3. 3Renting? Stick to plug-in and stick-on devices. Our renters’ guide covers what’s safe.

Step 1: pick your app

Decide which app will be home base: Apple Home, Google Home, Alexa or SmartThings. The short version: all-iPhone homes suit Apple Home, and mixed or Android homes suit Google Home or Alexa. Our platform comparison helps if you’re unsure.

You can use your phone alone to start with Google Home or Alexa, and add a speaker or display later if you want voice control and a Thread border router. Apple is the exception: Apple Home needs a HomePod, HomePod mini or Apple TV at home as a home hub before automations such as ‘lamp on at sunset’ will run (Apple), so iPhone households should count one in the budget.

Step 2: two or three smart plugs

Put your most-used lamps on smart plugs and schedule them for sunset and bedtime. It’s the cheapest way to feel the benefit, and it makes an empty home look lived-in while you’re away. Good first spots: the living room lamp you switch on every evening, and a lamp near the front door for coming home after dark.

Pick plugs with the Matter logo, such as the Kasa KP125M, so they work in any app and move with you if you switch. An energy-monitoring plug also shows which gadgets draw power while ‘off’; see do smart plugs save money? Thinking of a space heater? Check its manual first: Consumer Reports and many heater makers say to plug heaters straight into the wall (Consumer Reports). Our smart plug guide explains the load limits and has our picks.

Step 3: smart bulbs where it counts

Use smart bulbs where you want dimming or warm light at night: bedroom, living room, hallway. White-only bulbs cost much less than color ones and cover most needs.

One catch: a smart bulb needs power all the time. If someone flips the wall switch off, the bulb drops offline until it’s switched back on. Put smart bulbs in lamps or fixtures nobody switches off, or add a switch cover or a stick-on wireless switch. Each Wi-Fi bulb is also one more device on your router, so if you’re planning more than a handful, compare hub-based systems in Philips Hue vs WiZ.

Step 4: a leak sensor or two

A small water leak sensor under the kitchen sink and next to the washing machine or water heater costs little and can save a lot. Pick one that alerts your phone and, ideally, sounds a local alarm, so someone at home hears it even if the phone is on silent.

Check what it connects to before you buy: some leak sensors join Wi-Fi directly, some come with their own small gateway, and Thread or Zigbee models need a compatible hub or speaker. Our sensor picks spell out which is which. Test each new sensor once, the way its manual describes, so you know what the alert looks like.

Step 5: the bigger upgrade

Once the basics are working, choose one bigger device based on what bugs you most:

Three automations for week one

The devices only pay off once they run on their own. Set these up first:

  1. 1Lamp on at sunset, off at bedtime. Our sunset guide has the steps for each app.
  2. 2Leak alerts to everyone who lives there. Share the sensor’s app with household members, if it allows, so the alert reaches more than one phone.
  3. 3Away lighting. While you travel, schedule two lamps in different rooms to turn on and off at slightly different times.

Mistakes that waste money

The common ways a budget smart home ends up costing more:

  • Buying devices that only work in their maker’s app. Look for Matter, or at least support for the assistant you use.
  • Spreading across many brands. Each can mean another app, account and set of updates; one or two brands for plugs and bulbs is plenty.
  • Ignoring safety marks on very cheap plugs. Look for a listing mark from a recognized testing lab, such as UL or ETL, which shows the design was tested for electrical safety (ESFI).

What to skip at first

Hold off on these until you know your habits:

  • Standalone hubs, unless a device you want truly requires one.
  • Color-changing light strips everywhere. They’re fun, but rarely used after the first week.
  • Subscriptions. Check whether a camera or doorbell is useful without one before you buy it.

Who this plan doesn’t suit

The order above suits most first-timers. Change it if:

  • Security is your main reason. Start with the video doorbell and leak sensor, and read our privacy settings guide before adding indoor cameras.
  • You want every light in the house automated. A hub-based bulb system, or in-wall smart switches fitted by an electrician, suits a whole-house plan better than dozens of separate Wi-Fi bulbs. (Renters should skip the switches.)

Where these facts come from

We don’t test products hands-on. The facts above come from these sources, checked on September 30, 2026:

Frequently asked questions

Do I need a smart speaker to start?

No. Every major platform works from its phone app. A speaker adds voice control and often acts as a hub for automations and Thread devices. Apple Home is the exception for automations, which need a HomePod or Apple TV.

What’s the cheapest useful smart home device?

A smart plug on a lamp with a sunset schedule. It’s inexpensive and you’ll use it every day.

Do smart home devices need a monthly subscription?

Plugs, bulbs, sensors and most speakers don’t. Subscriptions mostly apply to cameras and doorbells, to keep video history, and to extra AI features such as those in Google Home Premium.

What if a plug or bulb won’t connect during setup?

It’s almost always the 2.4 GHz Wi-Fi band or a phone permission. Our 2.4 GHz setup fix walks through it step by step.

Filed under: Beginners · Budget · Smart plugs · Getting started

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