Maintaining a home can be expensive. When something breaks down unexpectedly, it’s important to have the money already set aside to cover the repairs. However, this means starting now to budget for home repairs and ensure there are plenty of funds available for whatever needs to be done. Unfortunately, many people find it challenging to save. They may not be sure how much money they need or how to make sure they save enough money before something happens. The below tips can help.
Save for Large Purchases
One way to start saving is to know the costs of large repairs that will be needed eventually and to start saving up for them. For instance, repairing your air conditioner can be a great way to keep it running longer, but eventually, the air conditioner will need to be replaced. Saving up the cost to replace the air conditioner will ensure that there is enough money to handle the replacement when it’s needed. Save up for as many major purchases as may be needed to keep the home in great shape and to make sure potential repairs are covered.
Save 1% to 3% Per Year
Another way to save is to save about 1% to 3% of the home’s value each year, adding to the previous year’s funds. Newer homes should require fewer repairs, so around 1% of the home’s value should be a good start. For homes more than 30 years old, though, it is a good idea to save a little bit more money. Find out the value of the home and then the percentage. Divide that by 12 months and have that amount automatically moved to savings each month to make sure enough is saved throughout the year.
Save More for an Older Home
It is a good idea to save more money for homes that are older. If the home is more than 50 years old, it’s likely going to need more repairs in the future as older systems within the home start to break down. Saving more money makes it possible to ensure the funds are there when something does break down or needs to be replaced so it doesn’t become a hardship to keep up with the repairs. It is recommended to consider what will need to be repaired next or what may be getting too old and make sure enough money is set aside each month.
Replenish after Spending Money
Eventually, some of the money saved will need to be spent. Homeowners can end up spending up to $6000 per year on repairs, even if they’re just smaller things that are easier to afford, as those do add up. If any money is taken from the home maintenance budget, be sure to replace it as quickly as possible to keep building the savings and ensure the money is there if something major requires repairs or replacements.
If you’re worried about the cost of emergency repairs, start saving up now. With how expensive repairs can be, especially if a few things go wrong at once, it’s incredibly beneficial to have money already set aside that can be used to make sure the home is fixed and the issues don’t get worse. Take the time to go through your budget today to start saving up money so you’ll be prepared if anything happens.
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