If you are a homeowner, it’s smart to make sure you have an annual savings fund just for your house.
“Some years you might have no expenses, and other years there may be massive repairs and updates,” said Becky Krieger, a managing partner with Accredited Investors Wealth Management.
She says no matter the home you own, be ready with a cash fund.
“The rule of thumb is to have 1-3% of that home value set aside for upcoming maintenance, repairs, and remodeling and increased expenses that may come up along the way,” Krieger said.
On a $400,000 home, that’s $4,000 to $12,000 cash ready.
This fund is in addition to the three to six months savings of an emergency fund.
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