Top-rated financial planners tell our team that homeowners should build up an emergency maintenance fund of about $5,000. That way, you can handle a sudden expense, such as an emergency roof replacement or new furnace installation.
Of course, how much you can set aside for home-related matters will depend on your home’s condition, your income and other expenses and savings goals. Planners say it’s important to take a balanced approach to financial priorities, with attention to saving in case of job loss, paying off consumer debt and taking advantage of retirement savings options.
But since your home is such a major investment, it’s also smart to be prepared to afford routine maintenance and surprise repairs.