Housing Planning
How to Build a Repair Reserve After Closing
Home repairs are not surprises over a long enough timeline, they are expected costs. A repair reserve prevents debt and stress when they show up.
How much to target
- Start with 1% of home value per year as baseline.
- Use higher target for older homes or deferred maintenance.
- Separate routine upkeep from emergency repairs.
How to fund it consistently
- Open a dedicated repair savings account.
- Automate monthly transfers right after payday.
- Replenish immediately after any repair withdrawal.
Simple system: treat repair reserve like a required bill, not optional leftover savings.
First-year priorities
- Fund high-priority safety and systems reserve.
- Keep emergency fund separate.
- Track annual repair spending to refine target.
Run Full Housing Cost Scenario