Dear Dave,

I have a question about how to budget for home repairs budgeting.

How much money do you recommend budgeting or setting aside for maintenance and repairs to your home, especially if it’s an older home? Our house is in pretty good shape, but you never know when something might go wrong, or how often different things will need to be addressed at this point.

– Brent

Dear Brent,

I love that you’re wanting to plan ahead. Some home repairs aren’t very expensive, but others can take a huge chunk out of your bank account.

Whether you directly budget for things like this, or set up a sinking fund for home maintenance, it’s always a good idea to be financially prepared. You’ve got to protect your home.

Honestly, I don’t really have a specific formula to determine this sort of thing. But I’d make sure I always look at it from a realistic point of view.

Be realistic when it comes to home repairs budgeting

For starters, you might start with a peek at your chequebook over the last few years to see what you’ve spent on maintenance and repair issues.

If you’ve had a new roof put on in the last few years, that probably won’t be an issue for a good, long while.

But if it’s starting to look worn, that’ll be a big expense you’ll want to figure into your savings plan.

Taking care of a home is kind of like taking care of a car. A lot will depend on the age and overall condition of the house.

If you’re driving an older model car, you’d expect to put more money into it over time, right? It’s the same principle with houses.

The older the structure, the greater the likelihood you’re going to have things go wrong. And that, of course, means pumping money into it.

A home is the biggest single investment most people make in a lifetime. So, I’d also recommend giving your house a good going over, inside and out, every six months or so.

Preventive steps like this will go a long way towards assessing what may be needed now and what might pop up in the future.

Great question!

– Dave

• Dave Ramsey is an eight-times national bestselling author, personal finance expert and host of The Ramsey Show. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions