Rustic23
Thinks s/he gets paid by the post
A quick search did not find this, so I thought I would see how people handle this.
For my analysis I use $40,000 as average annual expenses. Thats everything except a sinking fund for expenses I know are coming, but just don't know when. i.e. replace roof, appliances, car etc. It does not include medical because that is taken care of by insurance, and it does not include long term care as that is our 'melt down' scenario and is handled differently.
So for us I figure the following. I have the standard washer, dryer, stove, fridge, freezer, dish washer, and two water heaters. 8 items. All bought new with the house. I figure 8 year average life, and $2,000 each replacement cost or $16,000 total. *that's high, but I like the pad. So for eight years I need to put $2,000 a year in the fund to cover these replacement items.
Roof, $30,000 over 15 years or another $2,000 a year.
External house refurbish 10 years, $5,000 = $500 a year
Carpet another $500 a year
Auto $5,000 a year.
So all in all I need to put about $11,000 a year into savings to cover known future expenses. I go for $12,000, just because. So far we have been able to pay cash for all upgrades/replacements. Just wondering how others handle this.
Forgot AC, Thats another $6,000 about 12 years.
For my analysis I use $40,000 as average annual expenses. Thats everything except a sinking fund for expenses I know are coming, but just don't know when. i.e. replace roof, appliances, car etc. It does not include medical because that is taken care of by insurance, and it does not include long term care as that is our 'melt down' scenario and is handled differently.
So for us I figure the following. I have the standard washer, dryer, stove, fridge, freezer, dish washer, and two water heaters. 8 items. All bought new with the house. I figure 8 year average life, and $2,000 each replacement cost or $16,000 total. *that's high, but I like the pad. So for eight years I need to put $2,000 a year in the fund to cover these replacement items.
Roof, $30,000 over 15 years or another $2,000 a year.
External house refurbish 10 years, $5,000 = $500 a year
Carpet another $500 a year
Auto $5,000 a year.
So all in all I need to put about $11,000 a year into savings to cover known future expenses. I go for $12,000, just because. So far we have been able to pay cash for all upgrades/replacements. Just wondering how others handle this.
Forgot AC, Thats another $6,000 about 12 years.
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