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When one shops for the, hopefully, home, of his dreams, he, often, considers, the necessary monies, needed, to make the deal! This may include, items such as down – payments, and having one's finances, in order, etc, However, in the exclusion of the moment, and / or because human being's are often, renounced, procrastinators , there is little focus, to the necessities of actually, owning a house, and, this, fail to plan, and prepare, accordingly. Smart homeowners are those, who commit to, and are disciplined, enough, to pay themselves first, and, therefore, in addition to making the monthly payments, related to a mortgage, taxes, insurance, utilities, etc, begin the process, by creating reserves, to take care of several predicted, and unforeseen possibilities. This article will attempt to examine, consider, and briefly discuss, 5 reserve accounts, homeowners, should take advantage of.
1. Income interruption reserve: Even the most skilled individual, may face temporary periods, of having his income, interrupted. One should establish, from, day – one, a reserve account, with at least, six to nine months, income, so as to avoid unnecessary, additional stresses!
2. Reserves for repairs / maintenance: This account should be funded, to prepare, for regular repairs, and necessary maintenance. Begin the funding, with the equivalent of one month's income, and add, an additional 2 to 3%, of your income, weekly.
3. Overall / contingency reserve: This should be a well-funded reserve, which takes care of unforeseen contingencies, needs, etc. Once funded, it does not need, to be regularly, added to, but, when used, should be replaced, as soon as possible. Six, to nine months, reserve, is recommended.
4. Reserve for major repairs and maintenance: Will you be prepared, if something breaks, or needs repair and / or maintenance, often, at the least convenient moment? Create an account with at least, six months, equivalent, of income, so, as to be prepared, rather than devastated, by these circumstances!
5. Reserve for renovations / upgrades: After living somewhere, for some time, a homeowner realizes, he would be, either more comfortable, or his family, better – served, if there were certain renovations, and / or upgrades. Whether this is because of a change of life circumstances, such as adding a member to the family, or because one wishes a nicer, more – modern kitchen, or bathroom, etc, consider, how you would pay, for this. Put aside a regular amount into an account, and wait, until you are prepared, to do these.
The more prepared, one is, the less stress, involved, in home ownership. Will you have the discipline to prepare?