Home money pits that sap your savings

By J. Brian Bishop
Posted on March 31, 2017

There are so many expenses associated with paying the bills for a home that it is easy to miss money leaks that are costing you big dollars. Putting a plug into these leaks can make a big difference in your budget.

From old-school thermostats to faulty plumbing, here are some of the top money-pits to watch for:

1. Old School Thermostats

I recently replaced my 1980s-era thermostat with a new one for about $50. Why? Because the old thermostat was leaking money every day. My new thermostat is programmable, so I can automatically avoid heating or cooling the house when no one is home. It’s paid for itself in just the first few months.

2. Drafty Windows

It may sound extreme to replace windows to save money on your heating bill, but I was paying hundreds of dollars every month for propane when I moved into an old house with drafty single-pane windows.

5. Old Appliances

Old appliances are energy hogs compared with newer, more efficient models — especially refrigerators, freezers and dishwashers. It may be hard to notice that old appliance sitting there quietly sucking down extra electricity all the time, but the cost adds up every month.

Some utility companies will even take away old appliances in order to encourage people to replace them with energy efficient models. And you may even qualify for tax credits related to energy efficient appliances.

6. Bad Mortgage Rates

When you got your mortgage, you probably shopped around and got the best rate you could find. But have you checked your rate lately? You may be paying more than you need to for interest every month.

If you plan to stay in your house for a few years, refinancing your mortgage to get a better interest rate can help you hang on to more of your money each month instead of giving it to the banker.

7. Leaky Roof or Gutters

You won’t get a bill right away if you have a leaky roof or gutters that don’t work properly. But deferred maintenance is like a time bomb that can cost you a huge amount of money in the future in the form of repair bills and reduced property value. Take care of water leaks before they become a money pit.

8. Too Much House

If your house is bigger than you really need, you are paying extra every month for your mortgage, utility bills, and property taxes. Consider downsizing to avoid sinking money into paying for space you are not fully utilizing.

This article is from Wise Bread, an award-winning personal finance and credit card comparison website.