4 Ways Putting $1,000 Into Your Home Boosts Your Finances

You can use an additional $1,000 in your pocket for many different things. But one of the best investments any homeowner can make is an investment in their home. A home is the largest and most valuable asset that most people own. The home also requires regular maintenance, repairs, and replacement. If the budget is tight, homeowners often put these important things off.

What are some of the best ways to use just a little money to boost your home value and your own security? Here are four great ideas.

Nearly every homeowner has at least a few delayed maintenance items that the homeowner could do at any point. Focus on those that can give you the most bang for your buck in two categories.

The first category of good maintenance options is smaller issues that can easily turn into major expenses or dangerous situations. This might include things like signs of mold or moisture on walls or the ceiling, cracks in retaining walls, or a dead tree overhead.

The second category to look for is deferred maintenance on things that are of high value. Your roof, for instance, is vital to the home and one of the most expensive assets to replace. Spending money to have professionals inspect it and correct defects is money well-spent. Similarly, consider paying for an inspection of the plumbing system, aging appliances, or the electrical system.

The water heater is an often-ignored home appliance that uses up a surprisingly large amount of energy. You might pay for an old, inefficient water heater every month without realizing it.

Updating the water heater to a more energy-efficient model costs anywhere from a few hundred dollars to one thousand. You may even want to opt for a tank-less version. Either way you choose, this upgrade will likely cut your monthly bill and may even result in a tax credit as well.

A modern kitchen is a big selling point for most buyers, so this is a good place to focus your money. While $1,000 probably won’t pay for a grand kitchen makeover, the money can make a significant difference when used strategically.

You could use the money to update old flooring, resulting in a completely different look. Have a mismatched appliance or two? Create a harmonious look. Repaint or replace cupboard doors and update the fixtures. Just about any changes to modernize the appliances, materials, or fixtures will likely pay for itself when you sell.

Similarly, updating bathrooms is a good use of remodeling money too. You could opt to add modern tile or update toilets, shower or shower doors, bathtubs, or accessories with modern variations.

Is your home underinsured? Then it's in danger, and so are your finances. Assess your insurance coverage to determine where gaps exist that could potentially cost you. Where should you look?

If you have a high deductible, you could lower it if you have some money set aside in case of emergency. Have a small home-based business or rent out a room on a home-sharing website? Both situations call for additional coverage to protect you during business activities.

What assets do you have in your possession? Have you added valuable assets since establishing your homeowners coverage? Have you done updates, such as room remodels or additions, since buying insurance? Have home values gone up in your area? Any of these scenarios may mean you need to boost coverage to protect your finances.

Any of these additions to your property could ward off bigger bills or save money today. Start sprucing up your home and your life by meeting with a financing expert at Central Finance today.