Understand What A Reserve Study Is
To understand what reserve studies are, let me give you a quick example. Let’s say that you have had your house for about a decade. If you built it, you know what you have used for specific parts of the house, and because of that you can know how long those parts are going to last. For example, your wooden roof needs to be redone every 20-25 years. If you didn’t know that, don’t feel bad, there is a small group of people who do, and they are probably specialists. But the thing is – you don’t have to think about those things, there are other people who will think about that for you, and you will have everything you need on a couple pieces of paper.
Those papers are called reserve studies, and they make your life stress free, at least for that part. Imagine a situation where you know that you need to redo the roof after it has leaked. It may damage the wood inside, the walls, some pieces of furniture, or anything else. Then you would need to redo the walls, maybe change some furniture or whatever is damaged. You don’t want that. Especially when you know that it is so simple to avoid that, you will always choose to avoid it.
Most important, in a reserve study you will have written when you need to do every small (or big) project around the household, and how much money you will need for each one of them. Also, you will have information about how much money you will save each month, to be ready for those projects when it’s time to carry them out. And when those projects actually happen, you won’t notice any budget burdens, because you have been saving little by little with the help of a reserve study.