There’s no denying that home ownership is a smart move to make for many people
Regardless if you own a home or a rental property, you shouldn’t just focus on what your mortgage payment or Homeowners Association dues are each month, you should also focus on the hidden costs of homeownership
Wear and Tear
One of the primary “hidden costs” of home ownership is wear and tear. This can be defined as anything in your home that may need to be repaired or replaced while you own it like your water heater, plumbing, electrical, or roofing.
Your goal as a homeowner should be to have a “buffer” of cash so you can afford to pay for anything that your homeowners’ insurance or home warranty policy won’t cover and avoid using your credit cards.
How much should you have saved?
Let’s say that your monthly mortgage payment is $3,500, in this case, you should strive to have at least $10,500 saved. This will provide you with a decent amount of cash to cover any expenses when they arise.
Start Saving Now
Yes, it’s ideal to have at least $10,500 saved as a homeowner but if you don’t have any money saved the good news is that you can start where you are. Begin saving money now so that you can start building your savings up to $3,000, $5,000, and ultimately the goal of $10,500 in savings.
The more money that you’re able to save for emergencies, the better, because if your Air Conditioner, appliances, or HVAC in your home go out you will be able to pay for those repairs with cash, avoid getting deeper into debt, and ultimately be able to sleep at night.
Saving $3,000 is one year is actually very easy because you only have to save $250 per month. Start by eliminating the services that you don’t need like an expensive mobile phone plan, satellite television, Netflix, Amazon Prime, and other services then move on to looking for more ways to save money around your home.
To learn more about the hidden costs of homeownership, or to view homes for sale in Southern California, contact Fred Sed Realty by calling us at (800) 921-9231 or click here to connect with us online.