Owning a home is a privilege that comes with an annual price tag for maintenance that demands a homeowner has a budget for improvements in place at all times. The average percentage of maintenance on a home is generally 1%-3% of the value of the home. It is recommended that homeowners save through the year for expenditures that will carry a hefty price tag; such as a new roof, an HVAC system, or even a basic home improvement.
What is your method of saving throughout the year to cover the annual maintenance of your home? Here are a few suggestions to keep in mind:
- Every Friday deposit the date of the month into your savings account. Example: if Friday is on the 7th then you deposit 7 dollars, if Friday is on the 30th then you deposit $30. If you are married have your spouse do it as well and save twice as fast.
- Follow the numeric week deposit plan. Week 1 deposit $1, week 2 deposit $2, week 51 deposit $51.
- Set up an auto draft on your bank account to automatically transfer money from your checking to savings on a weekly or monthly basis. The key here is: out of sight out of mind.
When upkeep and replacement are due on your home there are two different scenarios you will find yourself in; you have enough money or you do not. If you do not there is no reason to worry just yet; Truly Noble Services, Inc. offers an opportunity for you to apply for financing.