Home ownership is as much a part of the American Dream as baseball and apple pie. While a key component of financial success, homes do come with a cost. If we have learned anything in recent years, it is that saving and planning ahead can make all the difference.
Personal finance experts recommend setting aside at least 1% of your home price each year in a separate account for maintenance and repair costs. Setting aside funds can be a challenge for households. One idea is to automatically deduct the funds from your paycheck or automatically transfer the funds between accounts each month.
Your home maintenance expenditures will vary greatly year to year. Some years you may just need to repair a pipe, however, when the unexpected happens or big tag items come to calling you will be prepared. Using reserves to replace a roof or sewer line is less stressful and you can rest assured that one of your most important financial assets is taken care of.
Source: Keller Williams Realty, Inc, “This Month in Real Estate” released 1/5/10.
Home ownership is as much a part of the American Dream as baseball and apple pie. While a key component of financial success, homes do come with a cost. If we have learned anything in recent years, it is that saving and planning ahead can make all the difference.