Budgeting Tips: How to Set Aside Money for Home Maintenance

Budgeting Tips: How to Set Aside Money for Home Maintenance

It’s one matter to build your dream home, and it’s another to maintain it in the long run. Over the years, the property will be subject to wear and tear. As a result, you’ll start seeing missing shingles on your roof, worn out or cracked walls, damaged sidings, or even broken doors and windows. For this reason, you need to set aside a budget for your home maintenance. This money will go towards repairs or even replacements of some components of your house.

But how do you go about setting a home maintenance budget? In the sections below, we will share three budget tips you may want to consider before hiring general contractor services for your home maintenance:

1. The one percent rule

For your home maintenance budget, resorting to the one percent rule can be your best approach. This rule involves calculating one percent of your purchased home pricing, and the amount calculated will be the money you set aside each year for your ongoing maintenance.

For instance, the overall selling price of your home is $200,000. If you do the math using the one percent rule, then your budget will be set at $2,000. Know, however, that the real estate market fluctuates over time. This fluctuation may somehow impact your yearly budget, so you should always be prepared and ready for any unexpected changes.

2. The square-foot rule

Another popular budgeting method is the square-foot rule, which can be used to calculate your annual home maintenance savings. This practical estimate entails setting aside $1 for every square foot of the property for your maintenance budget.

For instance, if the size of your house is 2,500 square feet, this means that you will have to set aside $2,500.00 for your annual maintenance budget. This approach makes sense as your budget is directly proportional to your house size. The more square feet your house has, the more you’ll have to spend.

3. The fine-tuning calculation

Keep in mind that there are no hard-and-fast rules when it comes to budgeting for your annual home maintenance. As such, the best approach is to consider the rules mentioned above and incorporate both, which is a fine-tuning calculation. Here’s what you need to do: 

  • Get the averages of the one-percent rule and the square-foot rule. Given the earlier examples, $2,000 for the one-percent rule and $2,500.00 for the square-foot rule, and the average will be at $2,250.00. 
  • Include ten percent for factors affecting your home, such as weather, condition, age, location, type. If the average is now at $2,250.00, ten percent of it is $225. 
  • Sum up the total, which will be $2,2575 for your annual home maintenance budget.

Conclusion

House damages and repairs over the years are inevitable, which is why getting regular maintenance services is imperative. On top of this is the money you’d have to toss out from your annual maintenance fund. If you are clueless about how much you need to put into your maintenance fund, consider the three budget tips outlined above—the one percent rule, square-foot rule, and fine-tuning calculation.

Ultimately, you don’t want to end up looking for money in case of an emergency to have your house repaired or some parts replaced. This is why setting aside money for your home maintenance is the key!

We have been providing maintenance services for residential roofing for over 30 years. If you are looking for professional roof repairs in Ottawa that suit your budget, get in touch with us to see how we can help!