Part of successful money management is the ability to save and prepare for FUTURE homeownership-related expenses. The general 'rule-of-thumb' is to save between 1-2% of your home's purchase price EVERY year for future maintenance and upkeep on the home. (Eventually, even brand new homes will need repairs and replacement of major systems like the furnace, A/C, roof, etc.).
Fixr.com has put together an AMAZING infographic showing how Americans typically spend their money on home improvement based on data from The American Housing Survey, the US Census, The National Bureau of Economic Research, and the Joint Center for Housing studies at Harvard.
According to their data, Americans spent $42 billion dollars on home improvements in 2009 - and that's down from the $49 billion they spent in 2008.
Here's their graphic:
According the website Bundle.com, monthly expenses related to home maintenance and upkeep cost, on average, $363.00 per month, or $4,356.00 per year.
Click image to enlarge
Are you currently considering purchasing your first home? There are LOTS of factors to consider, including making sure that you are ready, willing and able to undertake the financial responsibility of upkeep and maintenance on your home. The first step to SUCCESSFUL homeownership should be a short visit with a Housing Counselor or taking a Home Stretch workshop. For more information on buying your first home in Minnesota, click here.
Disclosure: Fixr.com is a website that links homeowners looking to remodel with contractors. The MN Home Ownership Center has no affiliation with Fixr.com. Bundle.com is a website that compiles data on spending patterns in the U.S. The MN Home Ownership Center has no affiliation with Bundle.com