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If you own your own home, you’ll be aware of the fact there is almost always something that needs doing. It could anything from DIY and repairs to needing a new washing machine or front door.
While this could come out of your personal emergency fund (and if you live you by yourself it will do) if you’re a couple or two or three friends that have bought together, paying a little each month into a home emergency fund could be the way to go.
1. It Will Stop You Getting Into Debt
There’s nothing worse than getting into debt over a home emergency that you didn’t see coming. While perhaps putting some of the cost on a 0% credit card could be the answer if you really can’t afford it, having the money already there will make life much easier. Even with emergencies that are covered by insurance, there is often a long wait before you’ll actually receive the funds.
2. No attempting to things yourself and making them worse
When the cost of getting repairs is an issue, it can be tempting to have a go ourselves. While for some repairs a decent set of skills and some youtube videos may be all it takes, Brits actually spend £34 Million each year getting bodge jobs fixed in their homes.
There’s nothing more annoying than needing to pay more for something you made worse yourself!
3. It will stop arguments
Deciding what to do about a home emergency can be tricky anyway, but knowing you have the cash stashed to pay for it will stop arguments about who needs to pay for what and when. For example, if you’re based in London and you have a plumbing issue, you could simply call Pulse Plumbing and Heating to come and fix it straight away.
Having a home emergency is stressful enough without heat of the moment arguments making things worse.
4. Repairs or replacements can be scheduled faster
Knowing you have a pot of money to pay for repairs or new appliances means there’s no need to spend hours on the phone or web searching out the cheapest prices and then worrying they may not last or that you’re getting a cowboy.
5. It will give you peace of mind
If you have other goals for your money, such as a wedding, holiday or new car, dipping into these savings for something else can be really frustrating. Making a home emergency fund part of your monthly budget means you get used to setting that small extra bit of cash aside and it should be there to cover you when you need it most.
There is also a peace of mind that comes with knowing you can pay for home emergencies as and when they come up, whether it’s a faulty boiler, leaky tap or missing tiles on the roof after a windy night. It will also give you the option to get things fixed as soon as a problem occurs rather than later when more damage is done and repairs inevitably become more costly.