Given the recent cold snap here in the Pacific Northwest and the massive snowstorms throughout the rest of the United States, many homeowners are trying to avoid expensive heating bills by putting on a few extra sweaters. But what if you could add an extra layer of warmth to your home instead of your body, leave your thermostat at 70 and still lower your heating bills?

Here are five cost-effective steps toward a more comfortable, energy efficient and environmentally friendly home.

1. Close the gaps – Air leaking in and out of your home can be responsible for as much as 40 percent of your heating and cooling costs, according to Residential Energy by John Krigger and Chris Dorsi. By sealing up leaky areas, especially the bigger gaps found around plumbing, wiring and flues, homeowners can significantly lower their energy bills this winter. Many homeowners take on the task of caulking and weatherstripping around windows and doors themselves, but it is usually better to hire a professional to target the harder to find, and often larger, leaks located in the nooks and crannies of the home. A professional will also ensure that there is enough proper ventilation to keep the home healthy.

2. Give your home a sweater – While air sealing your home is like adding a windbreaker to reduce drafts, insulation acts like a sweater to make your home cozier by reducing the transfer of heat. Heat transferring through floorboards, ceiling and walls is even more expensive than air leakage, and in many older homes, there is little to no insulation to stop this heat flow. When it comes to choosing which area to insulate first (if you can’t afford to insulate all three at once), consider the amount of existing insulation and the installation costs. Attics, since they’re usually the most accessible, are generally the cheapest to insulate, while cutting holes in siding or drywall to install wall insulation tends to drive up the cost.

3. Seal up the ducts – Sealing and insulating ductwork will help your furnace deliver heat efficiently and evenly to the different rooms in your home. However, the importance of duct sealing depends on where the ducts are located. If they’re outside of the living space i.e. a crawlspace or attic, it’s a good idea to seal up and insulate those ducts. On the other hand, if the ducts are exposed inside of your home or they’re located inside of your walls and floor joists, not only will they be very hard to reach, but any heat they’re giving off will likely end up in the home’s living space anyway.

4. Upgrade the furnace – Installing a high efficiency heating system can be expensive. But if your furnace is highly inefficient and on it’s last leg, your best bet is to make the investment. One way to look at it is to consider the life-cycle costs because although the upfront cost of your new heater is high, it may cut your heating bills in half, which could more than cover the initial expense. Also, if the new furnace installation is combined with air sealing, insulation and duct sealing, you may be able to purchase a smaller system, which will save you even more money upfront and in the long run.

5. Revamp the water heater – Heating water uses around 20 percent of the energy consumed in the average home. The simplest ways to use less energy to heat water are to turn your water heater to 120 degrees Fahrenheit and wrap the storage tank and pipes with insulation. You can also replace your faucets and showerheads with water saving models. If you’re interested in making a larger investment to save water, energy and money, consider purchasing an ENERGY STAR dishwasher and clothes washer or replacing your tank water heater with a tankless or solar thermal water heater.

To find out which of these measures would be the most cost-effective in your home, check out EnergySavvy’s free online energy audit. It’s a quick and easy way to find out which energy saving measures will make the most sense in your home, and it will tell you how much money you may save on your utility bills by making the efficiency upgrades.

Written by Anne Maertens at EnergySavvy