3 How Homeowners Manage Housing Expenses

With every home purchase comes the responsibility of maintenance, repairs, taxes and everything in between. In addition, it can make it more difficult for connected homeowners to manage their costs. Even with detailed research and planning, managing living expenses as a homeowner can vary greatly depending on an individual's background, organizational style, and financial needs.

The Balance spoke to three US homeowners from different walks of life about their experiences managing home-related expenses. Here are their stories.

EJ Malveaux, Atlanta, Georgia

For EJ Malveaux, the expenses he focuses most on as a single homeowner are those that make owning a home “as easy as possible.” He bought his house in 2016 at the age of 27, and since then several improvements have been made to improve the efficiency of the house, such as renovating the kitchen and purchasing a warranty plan.

“Now I see where all that expense is coming from. It's the little tools you need for regular home maintenance outside of the hammer and tools,” Malveaux said, referring to the extension pole he bought so he wouldn't have to climb a ladder to change. devices. “Then there are the little things like cleaning your ducts. After a while, all the bills start to accumulate.”

When renovating her kitchen, Malveaux spent just $3,800 on just the physical cabinets they selected, the paint they needed, and the installation work. According to 2022 data from HomeAdvisor, the average kitchen costs $26,144, or about $150 per square foot.

In Malveaux's case, purchasing a warranty plan helped him cut some costs because it allowed him to pay a smaller fee for repair services. He estimates that he ends up spending about $60 to $70 a month, which has been helpful in dealing with wear and tear on appliances and some other things around the house.

Managing small expenses along with the extra bills of owning a home can be overwhelming. Malveaux struggles with anxiety and ADHD, making it particularly difficult to manage bills. For her, creating an account specifically for household expenses made the process more efficient.

Despite the mounting bills and occasional moments of stress, Malveaux still describes buying a home as a sound financial decision. The flexibility and the potential to increase income by renting made it a good investment to buy a home.

Kita Bryant, Atlanta, Georgia

When Kita Bryant moved into a new construction home in 2016, she didn't expect to encounter any problems. However, just seven years later in 2023, he has spent more than $10,000 on repairs to date.

According to Bryant, a blogger and photographer based in Atlanta, the arrangement was a year in the making, but there were many restrictions in her agreement. This meant that any problems not related to the physical structure of the house were his responsibility.

During her time living in her home with her two children, Bryant experienced a number of unexpected problems with the property, such as a broken electrical panel that cost her $5,000.

As a widowed homemaker and sole breadwinner, Bryant realized that in addition to being financially equipped to handle whatever came his way, being organized for the unexpected was key. After her husband's death, she learned the importance of keeping track of small and long-term household expenses, making it easier to fix technical problems she didn't see coming.

Even with potential contingency funds, in Bryant's experience, he faced a pay raise. For example, in one case, she learned that she was paid more to fix a broken air conditioner than a male neighbor with a similar problem.

Allison Baggerly, Katy, Texas

When Allison Baggerly—finance educator, founder of Inspired Budget, and mother of two in Texas—bought her home, she expected extra space to entertain friends and family. What he didn't expect was the increased costs that came with his hosting role.

“I was expecting a lot more than groceries and that kind of expense,” she said. “There were other things that really let me down, (like) how I was affected when I didn't expect it after a month. When we hosted people for the first time, our energy bill went up.”

When people come to her and her husband's house, Baggerly often turns down the thermostat to account for the excess body heat, uses more ice and water for drinks, buys more cleaning supplies, and turns on all the lights in the house—all of which are good times reflected in later bills. means

Other expenses Baggerly hadn't anticipated were a direct result of the extra space in her new home — the third home she's purchased. For example, his energy bill is higher than if he lived in a one-story house, because the house has more space for air or heat to be obtained. Moreover, regular pest control visits have become the norm. He spends $150 each quarter to prevent potential damage from termites and other pests.

Baggerly's biggest realization as a host? Even if the mortgage is paid off, you're not paying off your home.

“We pay $8,000 a year,” Baggerly said. “As our property continued to grow, when we paid off our mortgage, I realized (we) still had to pay about $1,000 a month in property taxes. I am preparing myself for it. We got a 15 year mortgage and will pay off our house in about 13 years. But this does not mean that I have no debt.”

To help stay on top of the bills, Baggerly and her husband rely on responsible credit card management. They also pay their bills in full every week and are careful to keep this system in practice.