I save 1% annually for ongoing maintenance. In some years I spend nothing but when you need the big things like a new roof or getting your exterior painted, you’ll use up that 1% and then some.

Note that I don’t use this money for remodeling, decorating or other discretionary expenses. It is purely to pay for maintenance or unexpected house related expenses: e.g. the dishwasher or fridge dies and needs to be replace, the AC unit breaks down and needs repair/replacement, etc.

I just spent $3000 getting my house painted (exterior) and spent over $5000 getting a new roof last year. If I hadn’t had this money already set aside it would have been very uncomfortable.