Developing A Household Budget For Unexpected Repairs

Our homes are our castles.  They are where we build our lives with our families and really define who we are as people.  Each year in our homes we become more attached to them and as a result want to ensure that they are maintained and kept up.  One of the main issues with owning a home is the unexpected repairs that seem to appear at the most inconvenient times.  Before these happen knowing the costs of several different repairs such as water heaters, appliance repair and asking how much does ac installation cost if it were to go out and needed replacement are all good questions to ask yourself.

Setting a repair budget

Saving money is very hard in many households.  With most Americans living paycheck to paycheck stashing away a few thousand dollars might seem like a pipe dream more than a reality.  However, with a few tips and tricks you can really start stashing away money for these unexpected repairs.

Knowing your expenses

Understanding what money is going out and when needs to be your priority.  Each month we will have the same amount of bills that need to be paid.  These include rent, water, power, cable, phone, food.  For others car payments and insurance, health insurance and other bills will fall into the mix but the top six should be the main ones to focus on.

When are they due?

Typically, all bills are due at the start of the month.  This is when people get paid and the money starts to flow and tidal wave out.  However, knowing when your bills are due can help you in budgeting your money.

Break up your checks

Depending on when you get your paycheck be it weekly, bi-weekly or monthly you want to divide what you get by four.  This is done to represent the 4 weeks of the month.  Now, take your total bills and divide those by four as well.  This will give your weekly expenses and the amount of money each week for those expenses.  Now, taking your weekly income and your weekly expenses and subtract them.  What is left over is your fun or savings money.  Take ten percent of that number and put it away for unexpected expenses.

Look for discounts

When shopping for installation prices look for discounts and deals.  Typically, in the colder months of the year prices may go down.  This typically reflects that it is not peak season when people need to run their AC.  Also, take a look at AC or HVAC schools in your area.  See if there are any programs that will allow students to have hands on experience with AC installation.

Limit your vices

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We all have vices. These can include smoking, drinking, gambling, chocolate chips or whatever.  A vice is an action or an expense that we do for personal enjoyment that costs us money.  If we limit these vices and take half or more of the money, we spend on it and put it into our budget money it will grow to exponentially.