Each month we put money in an account that we designate as our home fund. We have other savings accounts too, but we have used it to pay for things like a new roof, a new driveway, and a new sink. Honestly, I cannot imagine not having some savings to pay for stuff, expected or unexpected.
We have lived in this house 24 years. When we bought it, we figured we wanted to stay since it is a ranch, has few steps to get in, and is in a decent neighborhood. But things wear out. A friend from church has a son who has a remodeling business so we contacted him for a quote on updating a tub/shower, bathroom floor, fixing the wall in the bathroom, fixing a dishwasher problem (it wasn't the dishwasher, but the installer problem), and replacing a light in the closet. We talked to him and received a quote before Christmas. Like everyting prices have gone up since the last time we had anything of any magnitude done, and we had to wait until his crew was free, as well as when he got everything ordered. So, for the past two weeks we have been under construction. The crew was respectful not only to us, but to our house. They ran into a couple of problems, and we figured them out, but the house was built in 1979, so we assumed they would find some issues. At least nothing was major. They cleaned up after themselves at the end of each day.
DH has a light in his closet that works. We have a new tub/shower that is lower than the old tub which was quite high and we have grab bars. We have a stool that seems to work far better than the old one. There is new flooring and the squeak that was under that floor is gone with some extra bracing. And my favorite part -- my dishwasher works! It was an easy fix -- we bought the machine in August of 2020 and paid a "professional" to install it. Twice. It never worked right. We had the warranty company come out and they said it wasn't the dishwasher. The fix was there are levelers on the bottom of the dishwasher and the installer never bothered to use them so the dishwasher sat at a weird angle and wouldn't run since it wasn't balanced.
Was this expensive? You bet! Was it worth it! Definitely! It also has a great side effect...I've been cleaning and decluttering as well. Saving that money made it far easier than getting a loan.