Plumbing problems, malfunctioning appliances, or a leaky roof… these are all examples of home maintenance issues that can cause financial stress and problems for your family. As a homeowner, it is important that you prepare for the future. It is inevitable that something will need to be fixed at some point. By preparing financially, you will be able to reduce your family stress at that moment.
Budgeting for Home Repairs and Renovations
The biggest problem that homeowners run into is finding the money to fix these issues when they pop up. Many people end up charging the costs on a credit card, causing more stress in their family because of the financial burden.
It is important that you protect the relationships within your family. With proactive planning, you can be ready for the future and decrease the stress because you have the money available for the repairs. One of the best things that you can do is to have a home repairs savings account so that the money is always available when you need it.
How Much Money to Save?
So, how much money do you need to set aside? Home repair and maintenance costs can add up over time. But, you don’t need to have all of your cash tied up in this savings account. There is a balance between spending money on monthly expenses, fun family activities, and saving for the future at the same time.
Consider the quality and age of your home when you are planning your savings account. For example, if you are living in a new home, then it is likely that your home is covered under warranty. If something goes wrong, then the warranty will cover those costs. On the other hand, an older home might have a higher risk of problems because the equipment and parts are older.
Setting a Monthly Budget
When you move into a new home, make sure that you set a monthly budget so that you can prepare for the future. Write down all of your monthly expenses and the things that you would like to save for. Look at the amount of money that you bring in and figure out how everything should be spent.
Setting a budget can help you put together a plan to make sure that you have the money available if a home emergency happens. Home repairs are unavoidable, so planning an emergency fund will give you the opportunity to have the money when it is needed.
If needed, cut back a few of the “extras” so that you have some cushion money for your savings account. By setting aside the money, you will be able to reduce the stress at the moment the home improvement problem occurs.
At DUFFY Realty, we want to help you be prepared as a home owner. If you have questions about buying a home, contact us anytime for more information: (678) 318-1700