Financing & Ways To Budget For HVAC Emergencies

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Financing & Ways To Budget For HVAC Emergencies

I remember when I first discovered direct deposit through an employer. It really helped me to start saving money because I designated a small amount to be deposited in a savings account every payday. It was money I didn’t really miss but soon the money in that savings account was adding up into a nice emergency fund for rainy day expenses. Why am I bringing this up? Because it’s one good way to plan for an HVAC emergency.

Budgeting for an emergency

All financial experts say this is something you have to do. Every family in Illinois or Northwest Indiana should have some cash on hand. To be clear, this is completely separate from any sort of retirement account. That money should be considered off-limits. Now let’s talk about how to get that emergency fund started.

Step 1: Create a budget

A good way to do this is come up with how much money you want in the emergency fund. One rule of thumb from financial advisors is 6 months of take-home pay. Decide how long it will realistically take to save that amount. Let’s say it’s three years. Divide the number by 36 and that’s how much you’ll need to set aside each month.

Step 2: Watch your spending

You will make the saving process much easier if you reduce your spending. Do you really need that new pair of shoes or set of golf clubs? Can you make do with basic cable or satellite TV instead of the premium package? Is carpooling or public transit a viable choice?

Step 3: Stay the course

Once you start, don’t stop. It’s important to stay motivated and committed to your emergency fund goal. Maybe you can incorporate a prize program, so you treat yourself to something special when you hit a goal, say every $1,000 saved.

If you are motivated, you will be shocked how quickly your new emergency fund can grow. It will also reduce stress if and when an unexpected expense appears.

Don’t be afraid of credit

This does NOT change anything we just talked about, but there are times when financing a major HVAC purchase makes sense. If your furnace needs to be replaced make sure you talk with Merts Heating & Air Conditioning about financing plans. Many times, plans are available offering zero percent financing. If you have a history of handling credit responsibly and can afford the additional monthly payments, why not take advantage of “free” money. This allows you to continue growing your emergency fund for even more peace of mind.

Help is available 24/7

When HVAC problems do arise in your Illinois or Northwest Indiana home, Merts offers 24/7 emergency service. And, we are always available online with our chat feature when you need assistance. Just go to our home page and look for the CHAT NOW icon on the bottom right corner of the screen. Be sure to like and follow us on Facebook and Twitter for more great information like this.