For many Canadians, one of their goals in life is to achieve their dream of home ownership. However, statistics show that it is increasingly difficult to find the money to purchase your first home. With that said, anyone lucky enough to afford a home would be wise to incorporate an economic contingency plan.
In retrospect, far too many property owners make the terrible mistake of not accounting for unexpected expenses in their budgets. This often results in many property owners experiencing the misfortune of paying for expensive appliances, roof or furnace repairs at the most inopportune time.
If you have ever encountered an emergency repair around your home, you probably learned how important it is to put money away for a rainy day. If not, maybe you already understand that saving money is essential in the long run. On that note, we have some excellent tips for you to consider when creating a budget plan for your home maintenance costs. The first thing we advise you do is:
- Overestimate your expenses, in order to avoid being cash deficient in emergencies
- Delegate money to specific savings accounts for items likely to malfunction sooner rather than later
- Purchase a home warranty policy with an experienced service repair company that specializes in preventive maintenance (appliance repair, roofing) to minimize costs in the future
Accounting for Potential Costs
If every property owner should be aware of how big a responsibility owning real estate is. This is particularly true for those who are or have, experienced a rough financial patch in the past.
If you are caught in the rut of overspending, it may be time to start thinking about how to save more money. There are many innovative ways to prepare you for the most expensive commitment you will probably make in life. Creating a household budget is one of the best ways to account for the potential home maintenance costs you will have to shell out over the course of owning a home.
Set aside a certain amount of money each month that will be dedicated to home repairs and updates. You may not always use these savings each month, but over time, this number will grow and will allow you to avoid going into debt over minor home repairs. Additionally, you will have funds available in the future if you decide to make improvements to your home, or want to update it before listing it for sale.
For help in setting up a household budget that allows you to save for house maintenance costs, give CCSAC a call today. Our experienced team can assist you in preparing a budget that works.