Being a homeowner can be a great experience, but when it comes to financing home repairs, it’s not all fun and games. In many cases, repair costs pop up unexpectedly and at the worse times, such as an extensive roof repair right when you return from vacation or the air conditioner breaking down in the middle of summer.
Another downside is that these repairs are often expensive. Owning a home is a major investment, so it is important to take the steps necessary to maintain and improve upon it if you want to make a return. Depending on the age and the condition of your home and the stress of the elements it is put under where you live, a major part of maintaining your home will rely on addressing home repairs.
You may be wondering how you can finance your home repairs without draining your savings and how you can finance your repairs even if you don’t have a large savings. There are a variety of options for both situations. At Pittsburgh Drain Guys, we’ve put together a comprehensive guide to budgeting for your home repairs and options for financing the repairs.
How do I Budget for Home Repairs?
Before you begin the search for ways to finance your home repairs, it is crucial to account for repairs in your budget. Two of the most common ways to budget for home repairs are the 1% rule or the square footage rule:
The 1% Rule
This rule dictates that you should set aside 1% of the purchase price of your home annually to cover any repair costs. For example, if you bought a $150,000 home, you would allot $1,500 in your budget every year for repairs and home maintenance. While your repairs won’t likely cost you that much every year, it provides you with a guideline and helps to encourage you to build your savings.
The Square Footage Rule
For the square footage rule, you should budget $1 per square foot of your home to use for repairs. This means if you have a 2,400 square foot home, you will save $2,400 a year for repairs. While there isn’t a direct correlation between the square footage of your home and how much you will spend on repairs, it helps to provide you with a guideline to ensure you have a comfortable budget for repairs.