Home repairs and maintenance are a part of owning a house. These costs can add up over time and often come at unexpected times.
Besides mortgage payments and other ongoing monthly expenses, these sporadic costs can throw off your budget. This article explores tips and strategies to help you budget for home repairs.
- Prioritize Repairs
If you’re a homeowner, it is important to prioritize home repairs. This will help you manage your immediate concerns without jeopardizing your family’s financial stability. You can also reduce repair costs by seeking multiple quotes and exploring financing options. In addition, selecting durable and energy-efficient products can save you money on utility bills in the long run.
Create a list of needed repairs and rank them based on urgency and importance. For example, you should address urgent repairs that impact the safety of your family, such as a leaking sink or outdated electrical systems.
It’s also helpful to have a plan in place that can cover unexpected expenses. This will allow you to avoid relying on credit cards, which often come with high interest rates. You can also explore financing options, like investing in a home warranty, to cover unforeseen costs. Sites like https://www.cinchhomeservices.com/faq-library/-/faq/what-is-a-home-warranty will have more information on home warranty services.
- Set Up a Home Repair Fund
When it comes to big repair expenses like a new roof or water heater, the best way to manage them is by saving in advance. One of the most popular rules-of-thumb cited by financial experts is that you should save between 1% and 4% of your home’s value each year into a maintenance and repair fund.
To help you get a more accurate picture, he suggests creating a spreadsheet that includes the lifespan of all major appliances and systems in your home along with their repair costs. Also, consider keeping your home repair savings in a separate account to avoid the temptation of spending it on something else. It can also be a good idea to look into government-provided assistance programs for those with limited resources.
- Create a Maintenance Schedule
There are a lot of moving parts when it comes to home maintenance, and keeping track of everything can be difficult. That’s why it’s helpful to create a regular
maintenance schedule, so that you don’t miss anything important. You can use a free tool like Budget Watch to create a simple online budget that will help you set aside money for home repairs and maintenance each month, and it even updates daily to show you how close you are to your goals.
If you’re not sure how to start, consider using a maintenance checklist that breaks tasks down by month, season, or year. That way, you’ll know that the dryer vent is getting cleaned monthly, and the gutters are being cleared each fall, and that the
smoke detector batteries are being replaced each year. This type of regular maintenance can keep your home running smoothly and prevent small problems from becoming big ones.
- Be Prepared for Extra Spending
Ideally, planning ahead for home repairs, such as having a home warranty will help reduce the stress. But if you do experience an unexpected repair or emergency, don’t panic.
Instead, tackle the problem as soon as you notice it. A small issue, such as a leaky pipe, can become a bigger one when left unattended. Delaying repairs can lead to expensive consequences, such as structural damage or a flooded basement.
Your homeownership costs may be impacted by the age of your house, the climate where you live and the condition of the local real estate market. In addition, if you don’t have a plan in place and need to borrow money for home repairs, your credit score can take a hit.
