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Homeowner Emergency Fund: How St. Louis Owners Can Prepare

Jun 14, 2019 | Industry News

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Whether it’s your first time buying a home or you’ve been a homeowner for years, there are some essential responsibilities that come with owning your own home. These can come as a real surprise to those accustomed to renting, and they can derail the budget of any homeowner. That’s why having an emergency fund is so important. Here’s what St. Louis homeowners need to consider:

Why Save

Many people strive to have some type of general emergency savings, but it’s wise to create a separate one specific to your home. When you’re a homeowner, there’s no one else to cover maintenance and repair costs, and these expenses can come up unexpectedly. While you might take simple home maintenance into account in your regular budget, larger projects like painting the exterior or upgrading appliances can be costly. Even more important are repairs. Something like needing a new roof can throw homeowners into debt if they’re unprepared. This type of uncertainty can be stressful. When homeowners build an emergency savings account for their home, they can feel a bit more at ease about handling these expenses as they arise.

How Much to Save

A great goal is to put aside 1-3% of your home’s value. Another common recommendation is working towards saving 20% of your mortgage balance. If you’re buying a brand new home, you may not need to go into it with that much right away, but it’s a great goal to strive towards. If you’re buying an older home or a fixer-upper, of course, you’re likely to encounter more than the average repair costs. Don’t let the suggested goals discourage you if they feel out of reach. Any savings is better than no savings, and with conscientious effort, you can grow your emergency fund.

How to Save

It can seem like a large sum of money to put away, but there are many strategies homeowners and prospective homeowners can use to make saving a bit easier. The first is removing non-essentials from your budget. By prioritizing this emergency fund, you’ll help it grow faster. Committing to making regular contributions is another key strategy. Whether you do this yourself or set up automatic deposits, these weekly or monthly sums add up quickly. Even creating a small side hustle with this account in mind is a smart way to help it grow. There’s no one magic number that will guarantee you success here. The key is setting up the account and doing what you can to establish a savings.


Preparation is essential for homeowners. When you own your own home, you need to expect the unexpected. A homeowner emergency fund should be a top priority for home buyers and owners. This money can be a lifesaver if you’re hit with a large expense you didn’t see coming. Do you have any other tips for growing these savings? Share them with us.

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