Whenever I make extra money doing overtime at work or jobs on the side, I like to put it in a savings account for the house.
This is for not only sudden emergencies like a plumbing disaster or broken windows, but also for eventual improvements and upgrades.
For instance, we started saving for a new roof for three years leading up to when we planned on getting it replaced. This way we weren’t rushed to do it at the last minute and struggle to get the money together. In that event we would settle for a less reputable company to do it for the lowest cost that we could afford. Instead, we had enough money to use the best roofing contractor that we could find. Recently we used money from our savings account for a different kind of home improvement project. We were discussing ways to improve our energy efficiency with our HVAC technician when he suggested getting the attic insulated. A lot of energy waste in a standard central HVAC system comes from a poorly insulated attic. Since you’re pushing cold air through your ductwork, if a warm attic is making your ventilation system warm, you are forcing your air conditioner to fight an uphill battle from the beginning. But once an attic is insulated, the air inside will no longer be hotter than the outdoor air. Therefore you won’t have as much energy loss in your ductwork. It wasn’t as expensive getting our attic insulated as I thought it would be. I know that we’re saving a lot of money now that the project is complete.