Homeowners have a veritable mountain of responsibilities and expenses to manage. With a solid budget and the discipline to follow it, it can be manageable. That said, there are some pretty solid reasons why every homeowner should have an emergency fund that they can dip into if the need arises.
Emergency Repairs
Even if you keep up on regular home maintenance, you may still find yourself needing to do emergency repairs on your home. Just ask the millions of Texans who found themselves braving freezing conditions without power and water. Many of them have extensive plumbing damage they’ll need to pay to have fixed thanks to burst pipes. Situations like this are tough enough without having to scrape together funds to pay for repairs. If you have an emergency fund already set aside for such an event, you’ll be much better off.
Replace Items Over Time
The reality of owning a home for any great length of time is that at some point you’re going to have to replace different fixtures or parts of your home. You should replace your gutters every 20 years or so. The average asphalt shingle roof will likely need to be replaced 20–25 years after it’s installed. Metal roofs can last 40–70 years, so the longevity of your roof will depend on the material it’s made of and the elements it’s exposed to. A lot of these are projects beyond the average homeowner’s DIY capacities, so you’ll likely have to hire professional help. Having an emergency fund can help you pay for these home maintenance projects so you don’t overextend yourself financially.
Navigating Financial Challenges
Even if you don’t find yourself needing to finance emergency repairs or major replacement projects, you could still find yourself needing to take advantage of money saved in an emergency fund. 2020 proved how insecure even jobs that are normally really secure can be. If you were to lose your job, you would still need to pay for your mortgage, homeowners insurance, utilities, and other bills. Building up an emergency fund with at least a few months’ worth of expenses can relieve some of the stress you would otherwise be feeling in that situation.
Having a solid emergency fund can be a lifesaver if things get rough. It can be great for funding emergency repairs, replacement projects, or unexpected financial challenges. Given all the other financial responsibilities you’re fielding as a homeowner, it’s going to take time to build one up. Start now so that it’s there for you when you need it most.
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