Unexpected home repairs can hit hard, but with a solid budget, you’ll be prepared. In this blog, part of our series “New Year Home Maintenance: Essential Homeowner Tasks for a Great Year Ahead,” we’ll share tips on how to budget for both expected and unexpected expenses, ensuring you’re financially ready for anything your home might need.

Click here for a free downloadable excel spreadsheet template to accompany this list and help you figure out your annual and monthly budget for being a homeowner. 

How to Come Up With Your Budget as a Homeowner

1. Assess Your Annual Home Expenses
   
   Start by listing all your regular home expenses. These might include:
   
   - Mortgage Payments: Your biggest expense, likely.
   - Property Taxes: Often paid annually or semi-annually.
   - Home Insurance: Essential for protecting your investment.
   -Utilities: Electricity, water, gas, internet, etc.
   - Maintenance Costs: Regular upkeep like lawn care, HVAC servicing, and pest control.
   
   
2. Plan for Unexpected Repairs
   
   Unexpected repairs can be costly. Here’s how to prepare:
   
   -Emergency Fund: Set aside 1-3% of your home’s value annually for unexpected repairs. For a $300,000 home, this means saving $3,000 to $9,000 each year.
   - Regular Inspections: Schedule annual inspections for your roof, plumbing, and electrical systems to catch issues early.
   - Home Warranty: Consider purchasing a home warranty to cover major systems and appliances.
3. Create a Monthly Budget
   
   Break down your annual expenses into manageable monthly amounts:
   
   - Fixed Costs: Mortgage, insurance, and property taxes.
   - Variable Costs: Utilities and maintenance.
   - Savings: Allocate a portion of your budget to your emergency fund.
   
   
4. Track Your Spending
   
   Use budgeting tools or apps to monitor your expenses and adjust as needed. Regularly review your budget to ensure you’re on track.
   
   
5. Review and Adjust Annually
   
   At the end of each year, review your budget and expenses. Adjust your savings goals and budget allocations based on any changes in your home’s needs or your financial situation.
   
   
6. Seek Expert Advice
   
   For personalized advice on prioritizing your budget for home updates, reach out to us at REALgratitude.homes. We’re here to help you make informed decisions and ensure your home remains a valuable and comfortable space.

By following these steps, you’ll be well-prepared for both expected and unexpected home expenses, ensuring a financially stable and stress-free year ahead. Happy budgeting!

Feel free to let me know if you need any more details or adjustments! 

Click here for the free, downloadable excel spreadsheet template to help you come up with your budget as a homeowner.