Understanding the 1% Rule of Spending on Home Maintenance

Learn how the 1% rule of spending can help you budget for home maintenance and repairs effectively.

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The 1% rule of spending advises setting aside 1% of your home's purchase price each year for maintenance and repairs. For example, if your home costs $300,000, plan to budget $3,000 annually for these expenses. This proactive approach helps you prepare for inevitable home upkeep costs, ensuring you’re not caught off guard by unexpected repairs, and maintains your home's condition over time.

FAQs & Answers

  1. Why should I follow the 1% rule for my home? The 1% rule helps you anticipate and prepare for maintenance costs, ensuring your home remains in good condition without unexpected financial burdens.
  2. How do I calculate my home maintenance budget? To calculate your home maintenance budget, simply take 1% of your home's purchase price and set that amount aside annually.
  3. What types of expenses should I include in my home maintenance budget? Include expenses for repairs, seasonal maintenance, and any improvements needed to maintain the home's value and condition.

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