Purchasing a home is expensive, but not all of the expenses are covered in the down payment, closing costs, and monthly payment. The cost of homeownership goes beyond these costs to include home maintenance, repair, and the replacement of systems that will eventually come to the end of their useful life.

According to Tom Clark, syndicated builder columnist and operator of AsktheBuilder.com, a homeowner is well served by setting aside funds each month to cover things like plumbing leaks, a new roof, interior and exterior painting, furnace and air conditioning maintenance, and ongoing landscaping, as well as planned improvements --- such as new windows and remodeled bathrooms and kitchen --- for the future.

Please visit Tom Clark's website for specific suggestion regarding how much things are likely to cost down the road, and how much should be contributed monthly to the reserve fund.

Consistency in budgeting for such items every month allows setting funds aside for a number of years into the future. Having such a fund prevents having to scrape around for a large amount of cash when a major and unexpected breakdown occurs.