Owning a home isn’t all it’s cracked up to be. If something goes wrong, you don’t have a landlord you can turn to for help. Small repairs and maintenance tasks are entirely your responsibility.
Ignoring the possibility of a repair isn’t a good strategy. Roofs spring a leak, foundations crack, and appliances break down. Eventually, you’ll have to tackle something similar.
Make sure you’re prepared for that day. Check out the list below to see how you can prep your budget for household repairs and maintenance.
1. Save Every Month
As a general rule of thumb, you should save between one to two percent of your house’s value each year.
For example, if your home is currently valued at $400,000, you should aim for $4,000 to $8,000 for yearly maintenance and repairs. Or roughly $34 to $667 a month.
Reaching such a big goal is only possible if you stick to the following two rules:
- Make consistent contributions
- Don’t use this account for anything but repairs and maintenance
Choosing the right account will help you save. Aim for something that offers an interest rate higher than inflation. This way you’ll earn more money the longer you save.
2. Check Your Credit Score
There’s a stark reality you have to face as a homeowner: your emergency savings may not always be up to snuff.
Maybe your hot water heater breaks down only a few weeks into your new savings plan. You’ll need help covering an unexpected emergency bill.
Before that happens, keep tabs on your credit score. By checking your report proactively, you’ll notice if there’s an error on your credit report before you need an unsecured line of credit in your emergency.
This gives you time to dispute any inaccuracies that may be adding unfair entries to your credit history. While you may find qualify for an unsecured personal line of credit for bad credit, this product may have higher rates than you’re prepared to pay.
You’re due three free checks every year, making it easy to keep tabs on this important financial number. Spread these checks out every four months, so you get even coverage throughout the year.
3. Shop Around
Whether you’re looking for a plumber or a financial institution in an emergency, speed is important. But finding help fast comes with one major pitfall. You may not think about quality or price, so long as you get the help you need fast.
But it’s important to remember you have the time to do some research. You should always compare your repair technician or unsecured line of credit options, no matter what your crisis is.
Go online to read reviews or ask neighbours to see what they’ve done in similar situations. This may help you find a cheaper alternative that offers better services.
Your home is a long-term investment, but it can cost you a lot of money to keep. Between issues with your HVAC system, roof, or hot water heater, something is bound to go wrong somewhere.
You may be on the hook for a big bill when that day comes. But with a little planning, you may be able to handle these repairs without too much stress. Be proactive; plan for these unexpected repairs by saving and knowing your borrowing options. These tips may help make homeownership a breeze.