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As winter approaches, it may make sense to prepare for the cold weather by sealing cracks and holes around doors and windows no matter where you live. Proactive steps like these may help cut down on your heating bills.

If you’re bracing for a big chill, or worse, a blizzard — predicted to become more intense in the coming years, despite shorter winters — you’ll be glad you protected or checked the pipes, roof, chimney, heating system, and water heater. Your wallet and physical well-being may benefit from the following ways to winterize a house and how to finance the projects.

Ways to Winterize a House

There are numerous ways to winterize a house beyond sealing cracks in doors and windows. And while the steps to winterize a home may differ in Alaska than in Texas, it still helps to get ahead of any issues that may arise.

You should also know that the timing of the first frost can vary from state to state. It may help to check the National Weather Service’s data that forecasts the first frost for each state to assist in your winterization preparation timeline.

The following tips to winterize a house may help you reduce future repair costs and heating bills. And figuring out ways to lower your heating bills is something to pay attention to due to the potential rise of the price of natural gas, which is often used to heat homes.

Protect Pipes or Pay the Piper

When deciding how to winterize a house, you may first consider how to address plumbing leaks and other issues.

Burst pipes can cause $5,000 or more in damage, according to Consumer Reports , citing information from the Insurance Institute for Business and Home Safety , which has a page of recommendations to help prevent frozen pipes.

Pipes in unheated places inside a home, including basements, attics, and garages, are among the most likely to sustain damage. But pipes running through exterior walls can also freeze in certain conditions, and so can those running through kitchen or bathroom cabinets.

Protecting the plumbing is clearly a situation where being proactive may save a homeowner money.

Pipe insulation can be as inexpensive as 50 cents per linear foot. Compare that to the $5,000 figure above, and the rewards of winterization can quickly become clear.

Adding insulation to attics, crawl spaces, and basements can help to keep those areas warmer, which can also help to keep pipes from freezing.

If sinks are located on exterior walls, it can help to keep the cabinet doors open during frigid temperatures (after removing any dangerous chemicals, including cleaners, if there are children or pets in the home).

Allowing cold water to drip can also help prevent pipes from freezing, making sense in frigid temperatures.

Address HVAC Maintenance and Repair

Nobody wants the heating system to perform poorly during the winter — much less have it break down.

It’s a good idea to schedule a professional maintenance appointment, including a filter change before freezing temperatures arrive. (Then it’s best to change the filter at least every 90 days.)

Additionally, maintenance and repairs to the heating, ventilation, and air conditioning (HVAC) system and cleaning out vents can improve airflow in your home.

It may be time to consider a new HVAC system for some people. The U.S. Department of Energy’s Energy Star program provides tips to homeowners to decide if replacing an HVAC system makes sense.

Signs that it might be time to replace the unit include:

•   The heat pump is more than 10 years old.

•   The furnace or boiler is more than 15 years old.

•   The system needs frequent repairs, and energy bills are increasing.

•   Rooms in the home can be too hot or too cold.

•   The HVAC system is noisy.

If people in a home are away during reasonably regular times of the day, it can make sense to ask the HVAC professional about a programmable thermostat to save on energy costs.

The Environmental Protection Agency’s Home Energy Yardstick can help a homeowner determine if replacing an HVAC system makes sense.

Check the Roof, Gutters, and Chimney

Before winter hits, clearing the roof and gutters of leaves and other debris will help prevent snow and ice from building up and damaging the gutters — or, worse, the roof.

If ice or snow gets beneath roof shingles, it can lead to leaks and interior water damage. You may want to ask yourself if you need to replace your gutters. Do any shingles need to be glued down or replaced? Do any small leaks need to be repaired before they become big ones?

Plus, a chimney inspection can make sense before winter arrives. A chimney could have an animal nest lodged within, and there can also be structural problems. If the home has a wood-burning fireplace, creosote buildup can create a fire hazard. With a gas fireplace, a blocked chimney could lead to carbon monoxide backup, which can be life-threatening.

Addressing all these issues before winter comes can help you prevent future damage, reduce future repair costs and energy bills, and avoid a potential accident.

Examine the Water Heater

You want to check your water heater before temperatures plunge to avoid a chilly shower during winter.

Are areas of the water heater rusting or corroding? If so, this can lead to a leak. A professional can examine it, bleed the system to remove trapped air and mineral deposits, clean the pipes, and recommend and do repairs.

Think About Outdoor Equipment and Plants

Preventive winterization isn’t just about your home. You want to winterize your outdoor equipment, like a lawn mower or other power tools, to protect them as well.

Draining the oil from the appropriate equipment and taking it to a local recycling or hazardous-waste site can be your first step.

You also want to take care of general maintenance on equipment, including replacing old parts. That way, when spring rolls around and you need to mow your lawn or trim your bushes, you should be ready to go.

Additionally, inspect gas caps to ensure O-rings are intact; if not, get replacements from the manufacturer. Also, replace filters and lubricate what needs lubricating.

You may need to bring in the plants you initially placed outside to enjoy the summer sun when temperatures drop. Before doing so, check the plants for mealybugs, aphids, and other insects. Remove them, so they don’t spread to other plants.

Some people prefer to prune plants before transitioning them back into the house. If so, prune no more than one-third of each, pruning an equal amount off the roots. When repotting, pick a container that’s two or more inches bigger than the current one.

Gradually transition your plants to the new environment, which has different light and humidity levels. For a few days, bring the plants inside at dusk and put them back outside in the morning.

Over a period of 14 days or so, increase the indoor time until the process is complete and they’ve become indoor plants again, finishing the transition before temperatures go down to 45 degrees.

What’s the Cost of Winterizing a Home?

Pipe insulation, as noted earlier, can be relatively cheap, perhaps 50 centers per linear foot.

If a homeowner decides to insulate further, perhaps an attic, costs can range between $1.50 and $7.00 per foot, or a total of $1,700 to $2,100.

On average, an attic insulation installer may charge $70 an hour. If electrical work needs to be done for safe insulation around cables or junction boxes, you may expect to pay $80 an hour.

To hire someone to clean gutters and downspouts, you may pay an average of $119 to $227. An HVAC inspection might cost $325 and up, while the cost to replace an HVAC system could run between $5,000 and $10,000, depending upon the size of the home, among other factors.

What each of these services costs will depend on the locale, what types of repairs or unusual circumstances exist, and so forth.

Additionally, there are websites that allow a homeowner to enter a ZIP code and get an estimate of what a winterizing activity may cost. It makes sense to get quotes from local professionals to get an exact price.

Financing Winterization Projects

Some people pay for their home winterization costs out of pocket, while others may decide to get a home improvement loan. If you’re leaning toward a loan, comparing a home equity line of credit (HELOC) and a personal loan can make sense.

Recommended: How Do Home Improvement Loans Work?

A HELOC uses your home as collateral; for this to be an option, there needs to be enough equity in the property to borrow against it. If there is, and the loan amount required is large, it could make sense to apply for a HELOC.

Interest rates may be lower than those for a personal loan. Also, you can typically take draws from a HELOC up to the loan’s limit.

So if winterizing is coupled with indoor projects done through the cold season, for example, this might be a practical solution. In some cases, interest payments could be tax-deductible.

Recommended: The Different Types Of Home Equity Loans

A personal loan can make sense for recent homebuyers who haven’t built enough equity or for people planning smaller projects. Home winterization often fits into this category.

Applying for and receiving money from an unsecured personal loan is typically much faster than with a HELOC, partly because no appraisal is required for the loan.

Having an excellent credit score and cash flow can help a borrower get approved or receive better loan terms.

The Takeaway

Preparing your home for the harsh weather of winter can be one step you take to protect your house and potentially reduce your energy bills. However, many homeowners don’t take steps to winterize a house due to the upfront costs. Fortunately, there are ways to finance any home improvement projects.

If taking out a home improvement loan for home winterization projects makes sense, then here’s more about the fixed-rate unsecured personal loans offered by SoFi:

•   Personal loans have no origination fees and no prepayment penalties.

•   Qualifying borrowers may be eligible for loans up to $100,000.

•   Applying online can be quick and easy.

•   Customer service is available to help seven days a week throughout the process.

Winterize and protect your home with SoFi home improvement loans.

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Saving $10,000 in a year may sound like a lofty or even impossible goal, but it is indeed doable. Provided you take the right steps, that is. And saving that five-figure chunk of change can have many benefits, such as helping you get out of debt, save, and invest.

How you go about saving $10,000 a year is up to you. You can accomplish it through budgeting, a side hustle, and other means. It’s a matter of finding what makes sense for your personal situation and financial style.

If you’re interested in achieving this kind of savings, read on. You’ll learn the scoop on:

•  Is saving $10,000 a year possible?

•  What are the benefits of saving $10,000 a year?

•  What are the best ways to save $10,000 a year?

Is Saving $10,000 a Year Possible?

Wondering how to save $10,000 in a year? It’s possible if you can create at least that large a difference between your income and expenses. In other words, it’s just simple math.

If you don’t have at least $10,000 a year left over after all of your expenses are accounted for, you have two options to close the gap. You can either increase your income or reduce your expenses, or try a combination of the two techniques. Of course, you will also need systems in place to save that extra money, too.

Socking away $10,000 can be well worth your while. It can set you up with a significant amount of money that can help improve your financial wellness today and tomorrow. Next, take a closer look at how that could play out for you.

Benefits of Saving $10,000 a Year

The benefits of saving $10,000 may vary depending on your finances, but there are several ways it can be beneficial to the average person. Here are some things you can accomplish:

•  Start an emergency fund

•  Pay off debt — credit cards, student loans, personal loans, etc.

•  Invest money in a portfolio

•  Take a vacation

•  Fund a wedding

•  Save for retirement

•  Add to one’s savings for a down payment on a house

•  Help you buy a car

•  Tackle a home renovation project

•  Lower your stress levels and boost your self-esteem.

These are just a few of the potential benefits of saving $10,000 a year, but there are limitless ways in which putting that much money away can help. It may not be easy at first to save such a big sum ($833.33 a month in after-tax dollars), but you will likely be glad you did it.

12 Helpful Tips for Saving $10,000 a Year

As mentioned earlier, there are two basic ways to help you save $10,000 a year: decreasing your expenses and increasing your income. Saving money is important, for sure, but saving five figures in a single year can require true dedication, sacrifice, and smart financial management. Here, powerful steps to take to succeed in this money mission. Saving $10,000 in a single year will probably require a few of these tactics simultaneously:

1. Setting Your Goals

Setting financial goals is important because once you have a large aspiration in mind, you can then create smaller, actionable steps that can ultimately lead to success.

If saving $10,000 in a year is your goal, you might then see how you can alter your budget to get there. Having your goal might motivate you to save. For instance, if you typically go out for lunch Monday through Friday, you might pursue the smaller, actionable goal of ratcheting that down to once or twice a week. At the same time, you might set a goal of bringing in an extra $100 or $200 a month in income (more on that below). The idea is, by establishing your goals, you can take the right steps to achieve them. .

2. Creating a Budget

Creating a budget is worthwhile for two big reasons:

•  It helps you see where your money is going. It’s possible you are spending a lot of money on things that are not very important to you. Thus, you might identify some areas where you can cut back.

•  Budgeting helps hold you accountable. Having a budget means you can’t always spend money however you please. While that can be a harsh reality check at times, it will likely help keep you progressing towards saving $10,000 a year.

One important aspect of creating a budget is finding one that works for you. For some people, that means going all in on the 50/30/20 budget rule. For others, it might be keeping track of expenses with an app. Experiment a bit, and find a method that suits your personal and financial style.

3. Spending Less on Eating Out

One way to cut back on spending is to eat out less, as briefly mentioned above. The average American spends $198 a month on food prepared away from home, according to the Bureau of Labor Statistics’ Consumer Expenditure Survey.

Not only is to-go food pricey, it can be less healthy than what you prepare at home. While going cold turkey and abandoning takeout altogether may make you feel deprived and lead to your abandoning the effort, why not take a smaller step? If you vow to, say, cut down on your to-go mochaccino every morning and make it an only-on-Friday treat, it might become a ritual you look forward to that much more. This treat at the end of the week can help reinforce that you’re doing a good job saving. Go on, pat yourself on the back for your success!

4. Tracking Your Progress

Tracking your savings is a good idea because you probably aren’t saving $10,000 all at once. You don’t want 11 months to go by and find that you’ve only saved $1,000.

It isn’t necessary to assess your progress every day, but seeing where you are at the end of each month tends to work well. You can do this at the same time as paying your bills, reconciling your budget, and any other month-end tasks. When you know you are on track, it will keep you motivated to save.

Another way to check your savings is to use the tools your bank provides; many have online or mobile methods to see your balance and how well you’re advancing toward a goal. There are also apps available, separate from your bank account, that can help you keep tabs on your savings.

5. Automating Your Finances

Thanks to online banking, it’s possible to entirely automate your savings strategy. For example, you can set up a high-yield savings account and schedule a transfer to it from your checking account each time you get paid or once a month.

Automating your finances is a good idea because not only is it convenient, but it also facilitates your staying on track. If you have to set money aside manually every month, you might wind up spending some of it instead because friends invite you to join a pricey dinner or there’s a sale on something you’ve been eyeing. When you automate a transfer, though, you likely raise the odds that the cash makes it into your savings.

6. Having No-Spend Months and Weeks

Also known as a no-spend challenge, another strategy is to have certain periods when completely cut out some of your spending. This can come in the form of spending no money whatsoever on certain days. Or you might completely cut out certain categories for 30 days, such as buying new clothing. However you decide to cut back, this gamified technique may make it more engaging, delivering a big boost to your savings.

7. Spending Less on Entertainment

Going out can be fun, whether it’s to see a movie, a concert, or to a bar. But these nights out can also be expensive, especially when you are looking for easy ways to save money.

Of course, the goal doesn’t have to be to cut these things from your budget entirely. If you usually go to the movies a few times a month, you can make it once a month instead. If you are taking your whole family to the movies, that alone can easily save you over $100 per month.

Also take a look at your at-home entertainment costs. How many streaming platforms do you really need? It’s not uncommon for people to have several pricey ones, which can add up over the course of a year. Try canceling a couple and enjoy putting those savings towards your goal of $10,000.

8. Having a Side Hustle

Cutting back on expenses can be an obvious way to save, but some of us already have quite low expenses. If that is the case, you can earn money with a side hustle and use that income to bolster your savings.

One of the easiest ways to start a side hustle is to use the skills you already have to do some work on the side. For example, if you work as a programmer, you can do some extra coding on the side on a freelance basis. You might also consider opportunities that are possible in your free time, such as driving a rideshare on the weekends or walking dogs.

9. Selling Items That You Do Not Use

Many of us have items lying around that we don’t really use, whether it’s that espresso machine you never got the hang of or a leather jacket that just didn’t suit your style. Why not try selling some of your stuff? Items like electronics, jewelry, and furniture can be valuable, but any bit of cash can help pump up your savings.

Selling your gently used items can be relatively easy on sites like eBay and Facebook Marketplace. Take a look around, and see what you have that might be worth something.

The Takeaway

If you’re wondering how to save $10,000 in one year, know that it’s possible if you find the right combination of smart budgeting, expense whittling, and income building. The solution will be different for each person, depending on their income, expenses, lifestyle, and financial style. By budgeting carefully, cutting costs, and finding ways to bring in more cash, you can accomplish this goal.

Looking for a great place to save your extra money and get some tools to help you budget and track your progress? Consider a high-yield bank account with SoFi. You’ll spend and save from one convenient place, as well as have tools to help you save while earning a hyper competitive interest rate. And with no account fees and a competitive APY, you’ll get the most out of your money.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.50% APY on SoFi Checking and Savings.

FAQ

Is saving $10,000 a year good?

Saving $10,000 a year is great. It can help you accomplish a variety of financial goals, such as saving, investing, and paying off debt.

Is $10,000 a lot to save in a year?

It is, for many people, a considerable amount. Here’s a point of reference: More than half of Americans can’t cover an unexpected $1,000 expense. And it may be unlikely that the rest of the population have $10,000 saved. While saving $10,000 a year is a lot, it is possible.

How much do you need to earn to be able to save $10K a year?

How much you have to earn to save $10K a year depends largely on your expenses. The average annual household expenses were $61,334 in 2020, according to the Bureau of Labor Statistics. Thus, if you are like the average household, you would either have to earn at least $71,000 after taxes to have a margin to save $10K, reduce your expenses by $10K, or do some combination of earning more and spending less.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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SoFi members with direct deposit activity can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.50% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

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