We are tackling this project a little at a time. On my husband's day off this week, he took out the rusty medicine cabinet and sealed up the wall. I took down the wall paper last week, and I plan to paint the walls soon. I have a gift certificate coming for Lowe's which I earned with purchase points, so the paint will be free. We'll replace the light fixture and paint the sink cabinet. Last year we replaced the counter and sink with an all-in-one unit, so that much has already been done. Come January we'll tackle a new tile floor, and a new water saver toilet with more earned gift cards.
Older homes are a lot of work. We also need to replace carpets and windows. Energy Saver windows will at least reduce our energy costs. There is a light at the end of the tunnel though. This should be the last(almost) of any updates or repairs for a long time. We've got a water heater that is past its prime, but it's still functioning well. When it goes, we'll probably replace it with an Energy Star tankless water heater.
If we didn't have some plumbing and fiberglass repairs, this remodel would be completely free using our earned credit card points. We use our credit card like a debit card, never keeping a balance, always paying it off in full. It takes discipline to charge only that which you need(regular daily living expenses), but after many years, keeping to a budget has become old hat.