Maintaining a home is one of the most significant expenses you’ll ever have. From regular maintenance to surprise repairs, it adds up quickly. But with the right approach to budgeting, you can keep your home in tip-top shape without doling out tons of unbudgeted cash. The good news is you don’t need a finance degree to make it work.
Here are eight budgeting tips to make maintaining your home more affordable and more manageable.
1. Budget for Regular Maintenance Costs
Home maintenance, ideally, shouldn’t be something you think about once in a while when your finances “allow for it.” Your house and everything in it is constantly decaying in value and integrity. Roofs age, pipes burst, sump pumps fail, and HVAC systems don’t last forever. Instead of treating these expenses as surprise emergencies, start budgeting for them as regular, recurring costs. Experts suggest saving 1% to 2% of your home’s value each year for maintenance. For a $300,000 home, that’s $3,000 to $6,000 per year.
This planning turns surprise repairs into something you’re prepared for well ahead of time. Maybe you even realize it’s time to upgrade your old HVAC system with a mini split system. Use your advance planning to make sure you’re choosing the best option for your home.
2. Review Your Home Insurance Policy
Most homeowners don’t think about their home insurance until something goes wrong, but staying on top of it can save them from massive repair bills. Your policy should be tailored to your home’s risks, and you want to make sure you’re getting the best value.
If it’s been a while since you last reviewed your home insurance, it might be time to get a new home insurance quote. The right policy can give you better coverage for less, and you can compare your options online. The key takeaway here is to safeguard your home from excessive financial turmoil as best as possible. After that is covered, your next goal is to save as much money as possible (without forfeiting sufficient coverage).
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3. Save for Repairs in an Emergency Fund
No matter how well you plan, emergencies will inevitably happen. A surprise plumbing issue or a tree branch on your roof won’t wait until payday. To avoid going into debt over unexpected repairs, create a home repair emergency fund.
Even if you can only save $75 of $100 a month, that will add up over time. When an emergency hits, you’ll be able to pay for it without going into high-interest credit cards. This fund is a must-have for every homeowner, and the peace of mind it gives you is priceless.
4. Do One Project at a Time
When you own a home, it’s easy to see hundreds of things you want to fix. But taking on too many projects at once can be overwhelming and financially exhausting. Stick to one project at a time and give yourself a timeline and budget before you start.
For instance, if your aim is to redo your bathroom, don’t also commit to a brand new landscaping project at the same time. By the same token, don’t begin one project and start another before finishing the one you started. That will only set you up for headaches and drawn-out financial burdens.
Focus your budget and energy on completing one task, then move on to the next. This approach will help support your financial stability and prevent half-finished projects from mounting up.
5. Negotiate with Contractors and Suppliers
When you’re about to hire a contractor, one thing to keep in mind is whether you can negotiate on price. Before you sign a contract with anyone, price shop different contractors and determine who is the lowest. If you have a preference for a specific company to do this, you can ask if they’ll match a lower price. This works best when you have a lower offer from another contractor to use as leverage.
Also, some contractors will give you a discount if you pay in cash or if you do the work during the off-peak season. This doesn’t mean lowballing them or expecting something for nothing. If you do that, you’ll just insult them. Instead, ask, “Is this the best you can do?” You might be surprised how often you can save by just asking that.
The contractor won’t know how many other offers you’ve received from other companies, so it can subtly put pressure on them to make their offer as competitive as they can. You might even try sharing with the contractor that you’ve been price shopping, as that may compel them to reveal their best offer right out of the gate.
Final Thoughts on Affordable Home Maintenance
Homeownership comes with immense financial responsibility, but you can be smart about how you handle routine costs to keep your home standing. If you follow these five tips, you’ll be prepared for most things life throws at you (related to your house). So long as you’re proactive and always have a cushion for the unexpected, home maintenance can be completely manageable.
Last Updated on by Icy Tales Team