If you’ve ever tried to figure out how much you should save for home maintenance, you’ll know that the suggestions are as varied as the sources providing them. It’s a complex issue. Save too much, and you might unnecessarily tie up funds that could be used elsewhere. Save too little, and you could find yourself short when you need it.
The Traditional Approach
Many people rely on various formulas based on their income and the size of their home to determine their home maintenance budget. While these methods can be effective for some, they can also be confusing and not applicable to everyone.
A More Practical Way to Budget for Home Maintenance
Instead of relying on complicated formulas, consider a more straightforward approach.
Assess Your Home’s Condition and Finances
Start by assessing the condition of your home. Make a note of any potential issues and their estimated costs. Tools like HomeZada can help track this information. HomeZada allows users to track all the financial details of their mortgage, home insurance, property taxes, and any household expenses. This feature is particularly useful for homeowners trying to create a realistic budget for home maintenance.
Review Past Expenses
Next, review your home maintenance expenses for the past year or two, depending on how long you’ve lived there. Remember, this should not include upgrades – that’s a separate budget entirely.
Use these past expenses to calculate the average cost of home repairs per month. Then, divide this annual figure into 12 monthly payments that you can set aside easily. This method ensures that most homeowners have the funds they need for any maintenance issues that arise.
The Benefits of Budgeting for Home Maintenance Early
Budgeting for home maintenance early can save money in the long run. By setting aside a specific amount each month, you can avoid the stress of unexpected repair costs. Plus, you’ll be more prepared to handle any issues that come up, which can prevent minor problems from turning into major, more costly repairs.
Give this method a try, and let us know what you think! Remember, creating an annual budget for home maintenance doesn’t have to be complicated. With some planning, foresight, and the right tools, you can ensure you’re prepared for whatever home maintenance tasks come your way.