Home ownership comes with many upsides and a few downsides; one such downside is an expensive replacement, such as a furnace. Nobody ever wants their furnace to go out, and there is no such thing as a convenient time to replace something you’d rather have quietly work forever. Unfortunately, furnaces require regular maintenance and, yes, eventual replacement. Planning for that expense can greatly soften the blow to your finances and change your entire mindset on the necessary expense.

Budgeting for the Unknown

How surprising is it, really?

If you know that your furnace will eventually need to be replaced, then how surprising can you claim it is when that replacement is needed? While it seems to have a random, unlucky element to it, in reality, the knowledge that every furnace will someday need to be replaced and upgraded is commonly accepted. If your furnace is approaching or already over 10 years old, then it could be due for a replacement at any time, especially if it hasn’t been properly maintained throughout its life.

Accepting & Preparing

Once you accept that your furnace is, almost certainly, a finite resource that will eventually require an upgrade, all that is left is to begin planning for the upgrade. While you don’t know the exact date of the furnace replacement, you could easily find out the average cost. Give our New Braunfels HVAC professionals a call to learn how much, on average, a furnace replacement costs to know exactly what you can use as your target budget.

The Budgeting Options

There are two ways to prepare for a potential, but uncertain, emergency: The cookie jar method and the emergency fund. Depending on your temperament and financial situation, you may be willing to accept a bit more risk by adopting one single emergency fund to cover major expenses that you can’t foresee, or you could instead opt for individual budgets for major replacements, in the way that a cookie jar savings was typically for a single purchase. In either case, savings is the key to remove the anxiety that comes with a major HVAC replacement.

Cookie Jar Saving

For cookie jar savings, you simply calculate the price of the furnace, when (approximately) you will need to replace it, and then set aside money in a savings account each month until you reach that total. By doing this, you ensure that you’ll have the money for your furnace replacement, all while earning a small amount of interest on the money as it sits in the account. After replacing the furnace, you can continue slowly setting aside money for the next furnace and you’ll find that each furnace gets easier and easier to pay for over your home’s ownership.

General Emergency Funds

The beauty of a general emergency fund is that it covers anything that might come up; if you suddenly need a new roof, major car repair, or even a major HVAC repair, you’ll have the money set aside to handle these issues without having to max out the credit card. The difficult thing about an emergency fund is accumulating the relatively large amount it requires to guard yourself from these costs without tapping into it for lesser emergencies; additionally, you need to remain committed to refilling the account whenever an expense comes out.

Benefits of Budgeting

In either case, by setting aside some chilly-day money for a replacement furnace, you set yourself up for comfortably paying for any inconvenient HVAC outages in your home. Plus, you can consider a low-risk investment account, such as a money market, to earn a steady flow of interest on your funds, making replenishing the account far easier.

Contact Legacy Today

If you suspect that you will need a furnace replacement, either now or in the future, then be sure to contact Legacy Heating & Air Conditioning for an expert consultation, evaluation, and expectation for how to prepare for the replacement. Many of our New Braunfels customers have reported that their HVAC repairs and replacements are made easier by knowing what the eventual cost and timeline will be ahead of time, and we are proud to provide honest service backed by integrity to provide these helpful answers.

Contact us today to learn more or schedule your appointment!