Money Matters: Good morning, homeowners and reluctant landlords of your own property.

Are you tired of having extra money? Wish your paycheck could disappear even faster? Then homeownership is for you!

For just three easy payments of way too much money, you too can experience the joy of emergency roof repairs, surprise plumbing disasters, and an HVAC unit that picks the hottest day of the year to retire.

Let’s be honest, if home maintenance costs had a motto, it would be: "Expect the unexpected” or “Surprise, now hand over your wallet!"

But fear not. We’ve got the cheat codes to keep your house from morphing into a money pit faster than you can say "unexpected foundation issues." Let’s dive in.

Survey says: On average, homeowners will spend between 1 to 4 percent of a home's value annually on maintenance and repairs. Worse yet, that number increases as the house gets older.

For a home that cost $200,000 that means you’ll pay between $2,000 to $8,000 a year on maintenance cost!

Here is what on that portioned plate today:

 😎 Our Favorite Resources
👍 4 Ways Home Maintenance Cost Drain Your Wallet
👌 Top 5 Home Maintenance ROI Activities
🤷‍♀️ What’s up for next week

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Out favorite resources

📚Education

• This Old House is master class in home repairs wrapped up in an entertainment package.

• Bob Villa is always around if you exhaust topics over on This Old House.

👀ICYMI

How to Put Your Grocery Budget on Easy Mode

📜Quote

“Electricity can be dangerous. My nephew tried to stick a penny into a plug. Whoever said a penny doesn't go far didn't see him shoot across that floor. I told him he was grounded.” - Tim Allen

Today’s Main Event

4 Ways Home Maintenance Cost Drain Your Wallet

You’ve been saving up for that dream vacation, and just as you’re about to book the perfect beachfront getaway—disaster strikes! The HVAC system dies, the brand-new sink you installed last week springs a leak, and last month, you forgot to top off your emergency fund.

Suddenly, instead of sipping margaritas on the beach, you’re scrolling through local classifieds, eyeing a low-budget weekend at a cabin straight out of the Evil Dead.

Let’s turn the tide in your favor by tackling home maintenance nightmares before they ruin your plans!

1. Prioritize Maintenance Over Costly Repairs

HVAC systems are among the most expensive components in a home, but you can prevent major expenses with one simple habit: change your air filter every month.

Here’s why it pays to keep those filters clean:

• Lower energy bills: A clogged filter forces your system to work harder, increasing energy consumption by up to 15% (U.S. Department of Energy).

• Avoid costly breakdowns: Clogged filters can freeze evaporator coils, leading to system failure. A replacement system can cost between $5,900 and $20,000, while a new filter runs just $10 to $50.

• Extend HVAC lifespan: Neglecting air filters can shorten the system’s life by up to 10 years—potentially costing you multiple vacations!

Other key maintenance tasks to prevent costly repairs:

• Fix leaky faucets

• Seal drafty windows, doors, and fireplaces

• Clean overflowing gutters

• Clear clogged dryer vents

• Flush sediment from your water heater

2. Know Your DIY Limits

YouTube University makes home repairs look easy… until your "simple fix" turns into a scene from a construction site’s Porta Potty on Taco Tuesday. Before you go full DIY, know which tasks are better left to professionals.

Top 3 Repairs You Shouldn’t DIY:

1. Electrical Work – Electrical fires caused 24,200 residential building fires in 2021, resulting in 295 deaths and over $1.2 billion in property loss.

2. Plumbing – Water damage impacts 14,000 households daily. A small DIY mistake might cost $200 to fix, while a major mishap could cost thousands.

3. Roofing – Roof work is one of the most dangerous jobs in the U.S., with a fatal injury rate of 58 per 100,000 workers. Leave it to the pros.

3. The Emergency "Oops" Fund

Home repairs don’t send invitations; they just show up. If you don’t have a dedicated home repair fund, your regular savings and budget will take the hit.

How much should you save?

• Experts recommend setting aside 1% to 4% of your home’s value annually.

• Keep funds in a checking or savings account for quick access.

• Build it up by allocating a percentage of each paycheck.

• Consider using tax refunds, bonuses, or side hustle income to boost your fund.

4. Avoid the "While We’re At It" Trap

You start fixing a leaky faucet… then decide to replace the sink… then upgrade the countertops… and suddenly, you’re knee-deep in a kitchen remodel.

Mission creep is real, and it’s out to bankrupt you.

How to stay on track:

• Set a strict budget for each repair.

• Use emergency funds for actual emergencies—remodels are optional.

• Keep a Wishlist for future upgrades and create a separate remodeling fund.

Bonus Tip: Stay Ahead with a Maintenance Checklist

A home maintenance checklist can help you catch small issues before they turn into costly disasters. Regular upkeep means fewer surprises—and more money for vacations!

Top 5 Home Maintenance Tasks with the Best ROI

Want extra motivation? These maintenance tasks put real money back in your pocket:

1. Replace HVAC Filters Regularly

(We’ve already covered this above, but it bares repeating.)

• Benefit: Improves efficiency and lowers energy bills

• Savings: Up to 15% on heating and cooling costs

• Why: Clean filters prevent the system from overworking, reducing energy waste.

2. Fix Leaky Faucets Promptly

• Benefit: Prevents water waste and costly damage

• Savings: Around $6 per month, or thousands if ignored

• Why: A single dripping faucet can waste over 3,000 gallons annually.

3. Seal Windows and Doors

• Benefit: Cuts drafts and reduces energy bills

• Savings: Up to 20% on heating and cooling costs

• Why: Caulking and weather-stripping prevent air leaks, improving efficiency.

4. Clean Gutters Regularly

• Benefit: Prevents water damage to the roof and foundation

• Savings: Avoids repairs that could cost hundreds per year

• Why: Clogged gutters cause overflow, leading to structural damage.

5. Drain Sediment from Water Heater

• Benefit: Improves efficiency and extends lifespan

• Savings: $5 to $10 per month in energy costs

• Why: Sediment buildup forces the heater to work harder, using more energy.

• Bonus: Avoid replacing a $2,200 water heater too soon!

Until Next Time

What’s Up Next Week

FINAL THOUGHTS: Owning a home is basically being the CEO of a really expensive, unpredictable startup (that you live in). But with a little strategy, you can keep costs in check and avoid the dreaded "we have to sell a kidney" moment.

You don’t want to miss our next issue, Nico is talking about Building a Budget That Covers Kids’ Expenses Without Overspending.

Stay savvy, stay proactive, and may your pipes stay leak-free.

Jim & the Hootsquad

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.