J. Money at Budgets are Sexy recently posted about Stuff New Home Owners Never Think About…. His post was excellent food for thought. J.D. Roth of Get Rich Slowly also talked about When to Replace Common Household Items awhile back. Of all the items that they mentioned, I need to worry about the following (I’ve added some from his list):
- Dishwasher – J. Money says that dishwashers generally last about 9-10 years. The dishwasher in the condo was the original one from the developer and is now about 4 years old. Looking at Sears.com, a good dishwasher should run me under or around $1,000, which is about $14/month amortized over 6 years.
- Carpet – J. Money says that the carpet lasts about 10 years. The condo is just over 1000 sqft and was built new in 2007, so I should need to replace the carpet in 2017. Let’s estimate that at $2,000 (better to overestimate than underestimate, right?), which is about $28/month amortized over 6 years.
- Fridge – The condo didn’t come with a refrigerator, so I had to buy one. J. Money says that the fridge will last for about 13 years. I bought an energy efficient one for about $1,425, which is about $9/month amortized over 13 years.
- Clothes washer/dryer – The condo didn’t come with a washer or a dryer either, so I have recently bought new front-loading, high energy-efficient machines. If one goes, I would replace the pair. J. Money says that the washer will last for 10 years and the dryer 13 years. The pair cost me about $1,600, which is about $13/month amortized over 10 years.
- Stove – The stove in the condo was the original one from the developer and is now about 4 years old. J.D. suggested that my electric stove should last about 16 years. My estimate from Sears.com is about $2,000. Wow, stoves are expensive – good thing they last a long time! That cost amortized over the next 12 years is about $14/month.
- Microwave oven – The microwave in the condo was the original one from the developer and again, is now about 4 years old. J.D. suggests that these should be replaced about every 8 years. Sears.com suggests a ceiling cost of about $300 for a microwave, which is about $6/month amortized over 4 years.
Total monthly amortized cost for appliances replacing is as follows:
- Microwave oven – $6/month and replacing in 4 years
- Dishwasher – $14/month and replacing in 6 years
- Carpet – $28/month and replacing in 6 years
- Clothes washer/dryer – $13/month and replacing in 10 years
- Stove – $14/month and replacing in 12 years
- Fridge – $9/month and replacing in 13 years
- Total: $84/month and earliest replacing is in 4 years
My emergency reserves are currently divided up into several categories:
- Auto insurance deductible: $1,000
- Health insurance deductible: $1,000
- Renter’s insurance deductible: $500
- Job loss fund/general reserves: 6 months of expenses at a normal level
I am going to add a new category to the emergency reserves for replacing appliances. In the case that I lost my job, I need to be prepared for all of the above emergencies. I will fund this new category at a current level of $84/month and then when it comes time to replace the appliances, I will be prepared.
Readers, how are you prepared to replace your appliances or other far-off maintenance about your home?