September 2006 Smart Money Management Begins at Home Picking Up a Hammer Can Save You a Wheelbarrow of Cash It's not what do-it-yourselfers do that saves them serious money over the life of their home. It's what they DON'T do. You read that right. The trick to controlling home maintenance costs is avoiding the major repair, and do-it-yourselfers are great at that. And protecting your No. 1 investment is important. Not only because you can't live in a house that's falling down. But, a $200,000 home will typically eat up $2,000 to $4,000 in maintenance costs each year. Keeping that number on the low side on average each year can really add up. Plus, spending $12,000 for a new roof can wreak havoc on your savings. Tending to your home is a key part of money management. Raise Your Deductible? Another money-saving opportunity could be hiding in your homeowner's insurance policy. If your deductible is $500 to $1,000, some financial experts will tell you that is too low. The argument is that homeowner insurance should protect you against catastrophic loss only. In other words, you buy insurance to cover costs that you could never afford. When you keep your deductible low enough to cover $2,000 in damage, you are essentially prepaying for that repair — even if it never happens. You might ask your insurance agent what kind of discount you get for a $5,000 deductible. The do-it-yourself advantage Do-it-yourselfers avoid the major repair by making lots of little ones. After all, replacing a rusted water heater is a lot easier than replacing the contents in a flooded basement. Replacing a corroded pipe fitting beneath the sink is a lot easier than replacing an entire sink cabinet damaged by water. Replacing a missing shingle is a lot easier than repairing water damage from a leaky roof. It's plain to see, the trick to avoiding the major repair is to diligently and frequently survey your property and not to hesitate to fix the small stuff — all traits of the do-it-yourselfer. Here is a checklist: Get on your roof once a year and look for signs of fatigue, missing shingles, wet spots, and loose flashing. Check all the water lines to and from your appliances for corrosion or small leaks. Thoroughly examine your water heater, especially if it's more than five years old. Once a year, have a specialist examine your cooling and heating system. Do a walk through of the house looking for pealing paint, bowed walls or other signs of moisture behind drywall or plaster. Replace any old, brittle caulk around sinks and showers. Check for low spots in the earth or pooling water around the entire perimeter of the house at the foundation. Seal your deck and pavement sooner than you need to. Not handy? So what if you aren't handy and aren't ever going to be? You can still control maintenance costs by outsourcing your annual inspection. Find a knowledgeable handyman you can trust or a reputable home inspection company and pay them to do a thorough inspection. The money you spend on their service will be more than saved on the costs you avoid. Navigating Rough Economic Seas Two Minute Quiz Smart Money Management Simplifying Life Workin' It The Right Credit Card Short on Cents Past Issues

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