How to Budget for Home Maintenance Costs
Maintenance and repair costs are often overlooked when setting a budget. It is important to have money set aside for when something needs to be replaced or repaired. You should set aside 1-5% of the purchase price of your home for the predictable annual maintenance of your home. When deciding on how much to set aside for your home, you must consider the age, size, location and the current condition of the home. If your home is newer, you can set a lower budget and increase the budget as your home ages. You should be able to come up with an estimate of the lifespan, cost to maintain and cost to repair each item. Keep track of your home renovation expenses, so you know how much you have spent in the past to maintain your home.
Do not forget to budget for the yard and exterior features of your home. Maintaining the yard and exterior features of your home can easily be overlooked and costs can add up quickly. Make sure that you have money saved up for the unexpected emergency situations in life. We recommend that you save an equal living expenses of a few months in order to cover disasters and loss of income. Using these tips will allow you to live more comfortably knowing that you have money saved in case something goes wrong.