4 Needed Reserves, For Less Stressful Home Ownership

The better prepared, and ready, a homeowner, the less stressful, and more satisfying, the experience of home ownership, becomes. In order to prepare, one must recognize, and consider, and examine, 4 needed financial reserves, in order, to avoid unnecessary stresses, etc. While these aren't the only challenges, they are the most common, and, thus, creating these reserves, and committing to all the necessities, and discipline, the happier, and easier the overall experience. Here are a few of the approaches, and possibilities.

1. Monthly costs/ predictable: The predictable costs of home ownership, are those, you are fully aware of, from the onset! The wise homeowner, creates a reserve, of from 4 to 8 months, so, as to be prepared, for any negative contingencies, etc. These costs include the mortgage principal, and interest, escrow for real estate taxes, insurance, etc. Remember, while the principal and interest, might remain the same, real estate taxes often increase, annually, as do insurance premiums, etc. In addition, there is often, insufficient funding of the escrow, and it is recalculated, after the first year, or so.

2. Repairs/ unexpected and unanticipated: Along with owning a house, comes those unexpected, but necessary repairs! While some of these might be minor, the ever - increasing costs of hiring a plumber, electrician, roofer, etc, makes being prepared, a wise move. Funding this reserve, with an additional 6 months, or so, of reserves, is a wise approach, although requires commitment and discipline!

3. Maintenance - regular: Performing regularly scheduled maintenance, often, minimizes, further exposure, caused by being inattentive, or unprepared! Consider the possibilities, which includes seasonal maintenance, fixing minor issues (before they become major, etc), is a smart approach, but how one pays for these, is a necessary consideration!

4. Renovations - future needs, updating/ upgrading: When we first, purchase a home, of our own, our needs, may be somewhat different than they become, in the future! While, unlike the first three scenarios, can and should not, be delayed or put off, we can delay renovations, but, to enjoy, fully, where we live, we often need, to renovate and update/ upgrade. Only by planning, and disciplining ourselves, to have reserves, etc, will this be achieved, without undue stress!

The better prepared one is, the happier the home ownership, experience! Will you discipline yourself, so you are your own, best friend?