Household
The home maintenance budget: plan the roof before it leaks
Homes leak in two ways: the small annuals (servicing, painting) and the big-ticket replacements (roof, boiler, appliances) that arrive on a decade-long schedule. The 1% rule — set aside 1% of the home value yearly — covers both when it is actually funded.
- The 1% rule
Set aside 1% of home value per year for maintenance and repairs.
- Replacement cycles
Roof, boiler, appliances — dated events on a decade schedule.
- Sinking funds
Each big ticket gets a monthly deposit from move-in day.
- No repair panic
The emergency line absorbs the leak before the credit card does.
The big-ticket schedule
| Item | Life | Typical cost |
|---|---|---|
| Boiler / furnace | 10–15 yrs | $3,000–7,000 |
| Roof | 20–25 yrs | $8,000–15,000 |
| Water heater | 10–12 yrs | $800–1,500 |
| Appliances | 10–15 yrs | $500–2,000 each |
| Painting / exterior | 5–10 yrs | $2,000–6,000 |
The funding math
- Take the home value and apply the 1% rule for the yearly total.
- List the big tickets with their remaining life and cost.
- Divide each by its remaining months — that is the sinking fund deposit.
- Add a repair emergency line for the unknowns.
The 1% reality check
Newer homes sometimes run below 1%; older homes often need more. The rule is a floor, and the dated schedule is the truth.
When a big ticket lands early — the boiler dies at year 8 — the sinking fund plus the emergency line decide whether it is a plan or a crisis.
Frequently asked questions
How much should I budget for home maintenance?
The 1% rule: set aside 1% of the home's value per year. Older homes often need more; the dated replacement schedule is the honest number.
What is the 1% rule?
Budget 1% of your home's value annually for maintenance and repairs — $2,500 a year on a $250,000 home.
How do I fund a roof replacement?
As a sinking fund from move-in: cost divided by remaining life in months, deposited monthly, paid when the roof lands.
Should I use the emergency fund for repairs?
Only as a last resort — maintenance sinking funds cover the knowns, so the emergency fund stays for the unknowns.
Plan the roof before it leaks
Free dated home funds.