Create a Home Repair Fund

One of the ways that you can save up money to make sure that you can afford to take care of your home is to create a home repair fund. Your home can get expensive, since it comes with regular maintenance. And, of course, the best way to avoid having your home break the bank is to save up for home maintenance costs.

Home Maintenance Costs

Some of the costs that come with homeownership, and proper maintenance, include:

  • Snow removal
  • Lawn care
  • Cleaning
  • Garden costs (water, etc.)
  • Regular air conditioning/heating system maintenance

There are other costs as well. On top of that, you have to consider the costs associated with making repairs. Pipes break. Roofs have to be replaced. Carpets wear out. Windows are smashed. Appliances break down. All of these items cost money… and sometimes it costs more than you expect.

In order to prepare for unexpected costs, it helps to have a home maintenance fund to help prepare for these expenses. Saving up can help you avoid breaking the bank when you have home costs.

How to Start Your Home Maintenance Fund

Before your start your home maintenance fund, you need to have a place to keep your money. Look for a good bank account for your money. A high yield account is a great place to park your money. Look for an account with no fees, so that you don’t have to worry about those costs eroding your wealth. You can even use an online account. You need to be able to access your money within a couple of days, and an online account can provide this access.

Figure out how much you can expect to pay over the course of a year for home repairs and maintenance. Chances are that you won’t run into these costs all at once. Some costs, like yard care and snow removal, are a little easier to predict. But you never know when something more expensive will crop up. Estimate yearly costs for home maintenance and repair, and then divide it by 12. Each month, put that amount in your fund, and let it grow. You can also just put in what you can spare, even if it is only $50 or $100 a month.

If you have your money in a high yield account, the interest you earn will add to how much money you have in the fund. Look for the highest yield possible in order to get the best benefits. You might not even really need to touch the month for two or three years. But, when you do need the money, it will be there. If you have a newer home, your fund will have more time to grow, and if your home is older, you need to start saving up as quickly as possible.

While your fund may not cover the most expensive problems, it can still help. With preparation, you will be far less likely to break the bank when unexpected home costs arise.

Written by Tom Drake

Tom Drake is the owner and head writer of Canadian Finance Blog. While you’re here, consider signing up for the RSS feed or email subscription. Both deliver the latest articles directly to you everyday! Have a Twitter account? Then follow me for all the latest posts or to send me any comments or questions!

6 Responses to Create a Home Repair Fund

  1. Home maintenance is a concern I don’t usually take down in my budget notes. Unexpected costs really arise mostly from home repair. Indeed, there is a great need to prepare.

  2. I have something similar but I also use it for home improvements. I am replacing the AC unit this weekend so the next necessary large expense will likely be a roof in 5 to 10 years.

  3. Dave says:

    A home can be an expensive proposition. I have had a home for 30 years now and there have been times I wished I was a renter. Many times an unexpected repair has busted the budget because I ignored the possibility of something breaking. It’s usually something expensive like A/C or a water heater. You have the right idea with an emergency fund for when something breaks at home. How about a car repair fund also.

  4. Tom Napiontek says:

    Tom, what options are you seeing out there for high yield accounts with a short-term option for withdrawal that doesn’t have high risk involved?

  5. KDB says:

    Definitely a good idea! There’s always something either going wrong with your home, or something that just needs updating. The problem is that the same thing happens with your car. If only I could set up a special fund for all those expenses that you never seem to be ready for…

  6. homeowner24 says:

    Most of our competitors mark up their vendors invoices at a minimum of 15%. At Florida Estate Management 80% of our services are in house so we are substantially more affordable and offer a quality controlled product without marking up invoices. In most cases we can save our clients 10 to 20% on their monthly maintenance bills. (561.721.9537) http://www.FloridaHomeWatch.com

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