[FrugalTrader]

I currently rent and am saving for a house. I'm not sure if I'll get one soon, but I'm saving for an eventual purchase.

I've fully funded 6 months of an emergency fund, and seem to have funded my initial expenses for puchasing a place (lawyer's fees, land transfer taxes, basic furniture, etc). Now I'm thinking about a repair fund.

I think this will be a good idea, and it's easier to save for now while I have lower expenses. But, while there are lots of information on how much you should save in an emergency fund, there isn't much on how much one should save for a repair fund.

What would people suggest? I read somewhere you usually spend 1% of the value of your house each year keeping it up. I'm sure there are lots of folks here with lots of experience on keeping a house in good shape. Any thoughts would be fantastic!

Thanks!

I think that having some cash put aside for the house is a good idea. However, as regards to the amount, it can vary and most can be planned. For example, standard roof shingles last about 15-25 years depending on the brand and the cost of replacement can be planned. Or a hot water boiler around here only lasts 6-10 years ($500-600). Otherwise, if something expensive happens, like flooding in your basement, then home insurance will most likely cover it.

I personally don't have a fund set aside specifically for home repairs. If something were to happen, I would simply use my cash stash if I needed to do repairs or pay the home insurance deductible.