How Much to Budget for a Home Maintenance Fund | Ion Bank
Home maintenance fund

Buying your own home is a huge display of financial independence, yet it can present new challenges for those who previously rented property. While the landlord typically fixed the leaky faucet or broken heating system in your apartment, you’re now responsible for repairs as the homeowner. How much should you budget for home maintenance?   

Understand the Average Lifespan of a Home

While appliances can break at any time and storms may cause unexpected property damage, the features of your home have a general life expectancy. On average, how long do integral elements last before they need to be repaired or replaced? 

  • Asphalt Shingle Roof: 15 – 30 years
  • Furnace: 20 – 30 years
  • Central Air Conditioner: 12 – 17 years
  • Water Heater: 8 – 12 years
  • Washer & Dryer: 13 years
  • Refrigerator: 13 years
  • Range: 14 years
  • Dishwasher: 9 years

Save What You Can

It can be difficult to plan for the unexpected, but you never know when a tree may fall or the washing machine will stop working. After accounting for all expenses, how much do you have leftover to dedicate to a home maintenance fund? Whether it’s $50 or $300 a month, every dollar counts in the long run.

Consider the 1% Rule

According to financial experts, you should be saving at least one percent of your home’s value every year to cover maintenance costs. For a $300,000 house, this equals a minimum of $3,000 a year or $250 a month.

If this amount seems daunting, the savings do not have to be equivalent every month. Your purse strings may be tighter at the beginning of the year after holiday expenses but if you get a bonus in your paycheck, contribute extra to the home maintenance fund that month.

Explore Savings Accounts

When an emergency happens, you can’t afford to delay the necessary repairs. Look for a savings vehicle that allows you easy access to your money. While an interest-bearing account can grow your savings, avoid any options that have penalties for early withdrawals.

You’ll also want to keep these funds separate from your general savings, retirement and rainy day accounts, so you’re not tempted to access the money for other purposes.  

To explore savings account options for emergency home repairs, contact Ion Bank today.

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