I purchased a home earlier this year and want to know how much money to keep in my home repair/upkeep fund. I have a small house (3 bdrm, 2 bath, 1500 sq ft) on a small lot. I have no debt other than my small mortgage ($900/month, including taxes and insurance).

My retirement (including a pension) is continuing to be fully funded on an ongoing basis and I already have an emergency fund that is fully funded with six months of living expenses.

Thanks, in advance, for your advice. Happy New Year!

My answer:

Congrats – it sounds like you have put yourself in a fine position for short term emergency funds and long term savings. Home repairs can be tricky as far as pre-funding goes. Next week we will be replacing our roof at a cost of $20k. If you were to look at that as being the most expense home repair to plan for, that would be my goal. Any repair below that, such as a hot water heater, would be less than $1000. If you use the roof as a maker you should be well prepared for anything. If you have any other questions, please let me know.

The final comment:

Thanks for responding. I was thinking around $20K too, good to have it confirmed by an expert.

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