One change we have made to our budget process in the last 6 months is to add a line in the spreadsheet for “Large Appliance/Home Repair.” Our intention with this savings category is to surprise “Murphy” by being financially prepared when something breaks.
Can you beat Murphy all the time? No, but we did have a recent victory! Our dishwasher was becoming unreliable and reluctant to turn on. It was inconvenient, but not a crisis because we had built up funds for such an occurrence by saving $25.00-$50.00 a week when we could. We were able to pay in full for a new dishwasher and we still have several hundred dollars available. Now that we withdrew money from that budget line, we will put attention on replenishing it.
We also keep a spreadsheet listing our major appliances, the date purchased, and the date the warranty expires. The spreadsheet helps us be aware of any items that may be coming due for replacement. If your conventional water heater is 12 years old, you’re easy pickings for Murphy! When you have been a homeowner for a while it is so easy to think that you just replaced something, only to find that it’s 10 years old. Knowing a replacement is on the horizon gives us time to watch for sales or begin researching options.