Many young homeowners are unaware of just how expensive maintenance and repairs can be. If your fridge breaks down or your roof starts to leak, there will definitely be costly bills to pay, so it's best to continuously budget money into an emergency fund. If you're new to budgeting or just have trouble setting money aside each month, here are three tips that will help ensure you have adequate funds to deal with life's unexpected troubles.
1. Get your family on the same page
If you own a house with your spouse, partner or roommate, it's essential that everyone takes a similar approach to budget. U.S. News & World Report mentioned that you should talk with everyone involved and create a financial plan and support system.
"You need to be aware of the other person's attitudes about money and realize that your own aren't universal," Stephen Lovell, certified financial planner with Lovell Wealth Legay, told U.S. News. "Everyone needs to be on the same page and after the same goals for the budget to be successful."
Be sure to discuss how much money each of you should be setting aside every month and what expenses your emergency funds will cover.
2. Cut back, but also add on
When there's not enough money at the end of the month to put into your repair fund, your first instinct will be to cut back on extraneous expenses. While that may work for some people, you can also figure out a way to earn a little more money. Maybe you can take on a part-time job, do freelance work or simply sell belongings on eBay. An extra hundred dollars a month can go a long way toward keeping your emergency fund well-padded.
3. Think about a home warranty
Another way you can protect your home against unexpected breakdowns is to invest in an HMS® Home Warranty. When you have this service, we'll pay for the repair or replacement of your covered appliances and systems in case of a mechanical problem. That means you won't have to deal with high repair bills from your fridge, stove or other appliances. A home warranty can make budgeting a lot easier, as you're less likely to be caught off guard by unforeseen expenses.
The information in these articles is intended to provide guidance on the proper maintenance and care of systems and appliances in the home. Not all of the topics mentioned are covered by our home warranty or maintenance plans. Please review your home warranty contract carefully to understand your coverage.
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