Dave Says: A Ounce of Prevention

Dear Dave,

How many dollars would you suggest budgeting for home maintenance and repairs, especially if your house is older? We have a house that is in good condition, but it’s hard to predict when or how many things might need to be fixed. Some home repairs may not be very costly, but other can drain your bank account. It’s a good idea, whether you budget for these things or create a sinking account for home maintenance, to be financially prepared. You’ve got to protect your home.
Honestly, I don’t really have a specific formula to determine this sort of thing. I would always make sure to look at the situation from a realistic perspective. For starters, you might start with a peek at your checkbook over the last few years to see what you’ve spent on maintenance and repair issues.
Taking care of a home is kind of like taking care of a car. The age and condition of your house will determine a lot. You’d expect that if you drive an older car model, you will have to invest more money in it over time. The same applies to houses. It’s the same principle with houses. It’s important to invest money in your home. Every six months, I would also recommend a thorough cleaning of your home, both inside and outside. This will help you to determine what is needed right now and in the future. Dave Ramsey has been helping people to regain control over their finances, build wealth and improve their lives since 1992. He is also the CEO of Ramsey Solutions, and author of many books, including Baby Steps Millionaires – How Ordinary People Can Build Extraordinary Wealth.