Here’s Why I’m Padding My Home Repair Budget in 2023

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It’s a necessary move for me. 

When my husband and I bought our home about 14 years ago, it was brand spanking new. Not only did we get a say in its design, but we got the benefit of new appliances and the warranties that came with them. And while buying new construction meant taking out a larger mortgage than we would’ve been looking at for a previously lived-in home, the upside was that for our first few years in our home, we didn’t have to worry about repairs.

Things haven’t been as easy over the past few years, though. In fact, once our home hit the 10-year mark, a host of problems arose.

First we had to replace our water heater. Then our downstairs air conditioner went kaput, costing us thousands of dollars for a replacement. One year later, our upstairs air conditioner said goodbye, forcing us to dip deeply into our savings to cover a new unit.

But this year, I’m hoping not to have to raid our savings as much for home repairs. Instead, I’m taking a different approach.

I’m expecting more things to go wrong

Although I generally don’t consider myself an overly negative person, I’ve decided to take that approach with my home. I’m going to assume we’ll need thousands of dollars in repairs this year — and I’m working that into our budget by setting aside $500 on a monthly basis. All told, we’ll have $6,000 allocated to repairs this year.

To make room for that $500 a month, we’re cutting other expenses. Last year, for example, I started using a meal delivery service because I really found myself pressed for time to cook. That service cost about $200 a month. This year, I’m eliminating it to make room for more home repairs. (I guess I’ll just have to make more time to cook or otherwise learn to be happy with peanut butter and jelly sandwiches for dinner.)

Of course, it’s possible our home repair costs this year will exceed $6,000 — especially if something major goes wrong.

Although we replaced our washing machine a few years back, all of our kitchen appliances (think fridge, stove, dishwasher, and oven) are 14 years old. So is our dryer. And I recognize there’s a good chance we might have to replace at least one of these items within the next 12 months.

Plus, our heating system, which is also 14 years old, has been giving us trouble this winter. It recently got serviced and supposedly the issue was resolved. But replacing it could be a whopping expense, so I want to set aside extra funds in case that needs to happen sooner rather than later.

The downside of homeownership

While homeownership has its benefits, one major drawback is having to cover the cost of repairs. This year, I’m allocating extra money for that purpose due to the fact that my house is aging, and due to not wanting to keep dipping into my emergency fund every time something goes wrong. And if your house is getting older, you may want to take a similar approach.

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