You’ve paid the down payment. You have moved in and are now paying the mortgage. You’re budgeting your money well. You have an emergency fund for medical purposes. You’ve got a bit of money saved, too, for some leisure activities. But then a part of your roof collapses. There was something structurally wrong with that part, and it has caved in. The money in both your emergency and leisure savings isn’t even enough to cover the expenses. How could you have foreseen this?
This isn’t the first time you’re going to find yourself in this scenario. You might even need a tree removal service in Utah, but you don’t know where to get the money for it. Owning a home is more than just living in it and caring for how it looks. Home maintenance is a critical component of homeownership. And part of that responsibility is to set a budget for home maintenance alone.
Build a Reserve
This money should be set aside for home repairs and maintenance. Ideally, you should set aside 1% to 3% of the total cost of your home per year. This means that if your home costs $400,000, you should have at least $4,000 to $12,000 a year for its repairs. You can work this out monthly. Make sure that there’s a separate bank account to hold this money. You can also make one large deposit if you choose so.
Inspect Your Home
They say that prevention is better than cures. That also applies to home maintenance. Make regular inspections of your home. You can ask a handyman to do this annually, or if you have the tools, you can do it yourself. The intention is to identify the potential problem areas. This way, if there’s a potential major problem in the near future, you can prepare for it better. Of course, you will need to prioritize the areas that will require a big budget, such as the roof, plumbing, and foundations.
Cut Costs
Find out where you can save more money. Can you cut energy costs by using energy-saving bulbs? Can you use more efficient home equipment? If you take note of your daily expenses, you’ll find out that there are a lot of items that you can cut to save money. If you’re spending too much money dining out, perhaps this is the best time to learn how to whip up some of your favorite dishes yourself.
Do It Yourself
Are you handy with a hammer and drill? You can use YouTube tutorials to do some minor fixes around the house. This will save money. Instead of paying for someone to build a cabinet door or hang a painting on your wall, you can do it yourself and save hundreds of dollars a year. This will, of course, depend on your level of comfort with home and power tools.
Look at your expenses. Try cutting the non-essentials. Saving money for home repairs and maintenance will bring you peace of mind. You’ll sleep better at night, knowing that your savings are enough for a leak in the roof or a clogged pipe in the plumbing system.
