If you own a home, things will inevitably break down and need to be repaired or replaced. Even though homeowners know that they will have to pay for those expenses, many don’t save money for maintenance on a regular basis. Then, when an appliance breaks or the roof leaks, homeowners either have to delay a repair, which can make things worse, or pay with a credit card, which can tack on large interest charges. Setting aside funds for maintenance every month can help you avoid those scenarios and give you peace of mind.
How to Figure Out How Much to Save
Factoring home maintenance into your monthly budget can help you be prepared for the inevitable repair bill. As a general guideline, you should set aside 1-4% of your home’s value for maintenance each year.
You can select a percentage in that range that makes sense based on the age of your house and its current condition. Older houses typically have more problems and need more repairs than newer ones.
The lifespan of a roof and appliances can vary depending on the type of roofing material, the brand of appliance and how well it is maintained. The region and weather conditions can also influence the amount of money you’ll need. Take all of that into consideration when deciding how much to budget for home maintenance.
Keep Money for Maintenance Separate
Put funds for repairs into a separate, dedicated account. Having that money separated from the rest of your funds can help you keep track of how much you have available. Also, having an account earmarked for home maintenance can help you resist the temptation to dip into that resource for another purpose.
Don’t Neglect Maintenance
Nobody likes to pay bills for home repairs, inspections and routine maintenance, but if you’re a homeowner, that comes with the territory. Delaying maintenance and not making repairs as soon as you notice an issue will backfire in the long run.
It may be possible to make a relatively simple and inexpensive repair, but if you let a problem go for weeks or months, you may have to deal with a much larger issue and a more expensive bill. You may even have to replace an appliance that could have easily been fixed.
Make Saving for Home Maintenance a Priority
If your budget is tight, it may be difficult to find money to put aside for home repairs, but consider the alternative. If you don’t save for repairs, then get hit with a large and unexpected bill, you’ll have to scramble to figure out how to cover it. Planning for maintenance and repair costs can give you peace of mind. Take a close look at your budget and figure out ways to save.
