Ever feel guilty dipping into your reserve?

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Ever feel guilty dipping into your reserve?

Giuseppe Cavucci
online · Member since 2026 · 99 posts · 45 votes

Had to pull from my maintenance reserve last month for a repair that was genuinely necessary, not optional, not something I could put off. Still felt a weird pang of guilt watching the number drop, like I was failing at the one job that money had.

Logically I know that's exactly what it's for. The number existing and never being touched isn't a win, it's just money doing nothing useful while it waits. But there's something about a reserve that makes it feel more sacred than regular savings, maybe because the whole point is restraint until the moment you're supposed to actually use it.

Anyone else get a little irrationally attached to their reserve number? Or is spending it exactly as intended and moving on the normal reaction for everyone but me?

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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
1mo
Quote from @Giuseppe Cavucci:

Had to pull from my maintenance reserve last month for a repair that was genuinely necessary, not optional, not something I could put off. Still felt a weird pang of guilt watching the number drop, like I was failing at the one job that money had.

Logically I know that's exactly what it's for. The number existing and never being touched isn't a win, it's just money doing nothing useful while it waits. But there's something about a reserve that makes it feel more sacred than regular savings, maybe because the whole point is restraint until the moment you're supposed to actually use it.

Anyone else get a little irrationally attached to their reserve number? Or is spending it exactly as intended and moving on the normal reaction for everyone but me?

Our relationship with money is often irrational.  It takes a lot of work to “think rationally” about money and untie the emotions that get into the way.  Studies have shown that for most people the pain of monetary loss is twice as great as the pleasure of monetary gain - so people irrationally turn down investment with less than a 2:1 chance of success, even at “even money”.  However, for a minority (small) of people, that equation is reversed.  These are the gambler chasing any high risk venture even with low success probabilities. 

one of the toughest money relationships I've had to deal with was in the last two years as I transitioned from direct real estate ownership to reinvesting sales proceeds into REITs. Unlike direct property investment, or even syndications, REITs as stocks actively traded are "marked to market" continuously. As a result I found it very hard not to want to "take profits" whenever a REIT I invested in rose 20 -25% in price. No such temptation exists in direct property investment, as the "fear" of price dropping just isn't usually there.

Btw, I would argue that utilizing your maintenance/repair reserves is indicative of SUCCESS, not failure.  All properties suffer deferred maintenance, needed repairs, capitalized items replacement, etc.  The fact that you prepared for those expenses rather than just hoped to have the cash available, or worse be forced to pay 18% on credit cards, is the genesis of SUCCESS, not failure.  


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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2mo

    That's what the money is there for.

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1mo

    Just use a portion of rents to replenish:)

    [email protected]248-209-6824
    Logical Property Management4.9459 Reviews
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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    1mo
    Quote from @Giuseppe Cavucci:

    Had to pull from my maintenance reserve last month for a repair that was genuinely necessary, not optional, not something I could put off. Still felt a weird pang of guilt watching the number drop, like I was failing at the one job that money had.

    Logically I know that's exactly what it's for. The number existing and never being touched isn't a win, it's just money doing nothing useful while it waits. But there's something about a reserve that makes it feel more sacred than regular savings, maybe because the whole point is restraint until the moment you're supposed to actually use it.

    Anyone else get a little irrationally attached to their reserve number? Or is spending it exactly as intended and moving on the normal reaction for everyone but me?

    Our relationship with money is often irrational.  It takes a lot of work to “think rationally” about money and untie the emotions that get into the way.  Studies have shown that for most people the pain of monetary loss is twice as great as the pleasure of monetary gain - so people irrationally turn down investment with less than a 2:1 chance of success, even at “even money”.  However, for a minority (small) of people, that equation is reversed.  These are the gambler chasing any high risk venture even with low success probabilities. 

    one of the toughest money relationships I've had to deal with was in the last two years as I transitioned from direct real estate ownership to reinvesting sales proceeds into REITs. Unlike direct property investment, or even syndications, REITs as stocks actively traded are "marked to market" continuously. As a result I found it very hard not to want to "take profits" whenever a REIT I invested in rose 20 -25% in price. No such temptation exists in direct property investment, as the "fear" of price dropping just isn't usually there.

    Btw, I would argue that utilizing your maintenance/repair reserves is indicative of SUCCESS, not failure.  All properties suffer deferred maintenance, needed repairs, capitalized items replacement, etc.  The fact that you prepared for those expenses rather than just hoped to have the cash available, or worse be forced to pay 18% on credit cards, is the genesis of SUCCESS, not failure.  


    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1mo
    Quote from @Giuseppe Cavucci:

    Had to pull from my maintenance reserve last month for a repair that was genuinely necessary, not optional, not something I could put off. Still felt a weird pang of guilt watching the number drop, like I was failing at the one job that money had.

    Logically I know that's exactly what it's for. The number existing and never being touched isn't a win, it's just money doing nothing useful while it waits. But there's something about a reserve that makes it feel more sacred than regular savings, maybe because the whole point is restraint until the moment you're supposed to actually use it.

    Anyone else get a little irrationally attached to their reserve number? Or is spending it exactly as intended and moving on the normal reaction for everyone but me?

    You’re definitely not alone. I think that little bit of discomfort is actually a sign that you take your reserves seriously. I look at reserves as part of the cost of owning rentals, not really as savings I’m trying to grow forever. If a $3K repair comes up and I have $10K sitting there specifically for repairs, using that money means the reserve did its job and kept me from having to put the expense on a credit card or scramble for cash. The important part for me is having a plan to replenish it afterward. I’d be much more concerned about avoiding a necessary repair just to protect the reserve balance, because deferred maintenance usually gets more expensive. So yes, watching the number drop still hurts a little, but spending it on a legitimate repair is exactly what a healthy reserve is supposed to do.
    [email protected]614-300-7535
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  • James Mc Ree
    Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 936 votes
    1mo

    Using your reserve more or less as planned is perfect. Some items will be early and some might be late, but overall the reserve hopefully covers everything. It mitigates the impact if not.

    It's important to check your estimate against your actual and recalc your reserve contributions for the next replacement. For example, if you planned $1,000 for an item and it came in at $1,200; that's still a win. You now know the actual present price is $1,200 and maybe you are good for 10 years. Project (guess) at inflation for the item on a $1,200 base and you might be more accurate 10 years from now.

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