How to Budget and Save for Home Repairs Without the Financial Stress
Being a homeowner comes with many freedoms—and plenty of responsibilities. From keeping up the cosmetics to repairing or replacing broken appliances, the upkeep of your home falls entirely on you. There are many hidden costs of homeownership, but few people talk about how to prepare for repair expenses. It usually takes a surprise repair bill to hit for homeowners to realize the costs that come with maintaining their home. In order to avoid financial stress, you need to anticipate these costs and plan accordingly. Read on for tips on saving for home repairs.
Know the Factors that Affect How Much You Should Save
A few factors influence how much you should save for home repairs, including your home’s age, its condition, and the climate where you live. When considering your home’s age, you also need to think about the lifespan of individual parts and appliances. For example, the HVAC system may have just been replaced a year ago, but maybe it’s been over a decade since the roof has been touched. The age of individual appliances and structures can help you anticipate what may need to be repaired or replaced next, which in turn can help you determine how much to save.
Similarly, the condition of your home is a key factor. If you have an old home, this doesn’t automatically mean it’s in poor condition. In the same way, if your home is a new construction, this doesn’t automatically mean it’s entirely in good shape. That’s why it’s important to take the condition of your home, structural components, and appliances into account. Where you live also plays a role. For example, the maintenance needs of a home in a state with frequent hurricanes may differ from those in a state with frequent dust storms. Considering all of these factors can help you figure out the expenses you need to prepare for.
Know the Average Cost of Individual Repairs and Replacements
Knowing the age of your appliances and structures, or the last time they were repaired or replaced, is a good first step. To take it a step further, you should consider the average individual costs of home repairs and replacements. For example, the average cost of replacing a roof can be over $15,000, depending on where you live and the size of your home. The average cost of an HVAC system replacement can be upward of $5,000, depending on the size of your home, the type of system you have, and whether new ductwork is needed. Knowing the individual cost of each type of repair can go a long way in helping you determine your budget.
Decide How Much to Set Aside
Looking at home repairs in an itemized way, or taking all of the variables into account individually, can be cumbersome. To make it easier, the general recommendation is to save between 1% and 4% of your home’s value each year for maintenance costs. This usually gives you a decent cushion to work from. You can also break it down into a monthly savings goal. This means taking a simple look at your budget and seeing how much you can realistically set aside specifically for home repairs. When doing so, it’s helpful to think about the factors that impact repair costs and plan for potential emergency repairs. It can help to open a savings account that acts as a dedicated home repair fund, so you can stay on track and avoid dipping into it for other expenses.
Free Up Money to Put Toward Saving for Repairs
Saving money for home repairs isn’t always easy, especially if you’re making debt payments simultaneously. The more you put toward paying off debt, the less you can save. When managing debt payments yourself, you may find yourself making payments for a long time with little progress. You may even find that you accidentally forget to make payments and, therefore, incur penalties. With AutoPayPlus, we help you pay off your loans faster, so you can be debt-free sooner. With our automated bi-weekly payment plans, we make debt management easy, so you can change your life without changing your lifestyle.
Get started with AutoPayPlus today to put yourself on a brighter financial track so that you can start saving more for your home repairs! Contact us online or schedule an appointment with a Payment Concierge.
