Advertising
Advertising

Is a Gas or Electric Furnace Best for Your Home?

Is a Gas or Electric Furnace Best for Your Home?

When it comes time to replace your furnace, it can be challenging to decide whether you should purchase a gas or electric version. Each has its own benefits and drawbacks. Before you make a decision, here are some key points to examine:

Furnace Cost

One of the first factors people consider is the cost of buying a new furnace. In most cases, new gas furnaces are notably more expensive than electric ones. However, even though the upfront costs of a gas furnace are higher, that doesn’t mean you will spend more over the life of the furnace than you will with an electric version.

Advertising

Installation and Operating Efficiency

Neither gas nor electric furnaces are overly difficult to install. Electric versions simply need to be properly connected to the system. Gas furnaces do require venting to the outside, though this step may already be complete if your property previously had a gas furnace.

When it comes to operating efficiency, the gas version is by far the winner. A gas furnace can operate at 95 percent efficiency, while electric options are nowhere near that efficient. With the current price of fuel for gas furnaces, it looks like they will be more cost-effective in terms of operating costs for the foreseeable future. If you are looking to keep your day-to-day operating costs down, gas should be your go-to option.

Advertising

Lifespan and Maintenance

When it comes to lifespan, electric furnaces are the winner. In some cases, a gas furnace will need to be replaced every 15 years. In contrast, an electric furnace may last for 20 or even 30 years. While there are no guarantees how long yours will last (outside of a formal warranty offering), one way to ensure you get the longest life possible is by performing regular maintenance.

Gas furnaces should be examined by a professional on an annual basis to ensure there are not carbon monoxide emissions escaping through a crack. Electric furnaces should be maintained in order to ensure higher levels of efficiency. Regular maintenance on both types of furnaces will help keep the operating of any attached fans quiet.

Advertising

Need for Heat

In some cases, you simply don’t need heat that often. This can apply to homes you only occupy in the summer or to those who live in particularly temperate climates. Additionally, the nature of the furnace and the cost to run it may be less critical when other heat sources are used more regularly. For example, if you prefer to curl up in front of a roaring fire in the winter or snuggle up to an electric blanket, you may not have to run your furnace as often. In these cases, you may choose to go with a less expensive product or one with fewer maintenance requirements.

Safety

Operating an electric furnace poses no additional risk beyond that of other electric appliances. Gas furnaces have a slight amount of risk based on the use of gas for fuel: a gas furnace can release gas or hazardous carbon monoxide into a space. However, with proper maintenance the risk is quite low. Additionally, the installation of a carbon monoxide detector near the furnace can help alert you to any trouble before any harm is done.

Advertising

Making a Decision

The only way to determine which option is right for you and your home is to examine each of the above criteria carefully. If your house is currently setup for a gas furnace and you anticipate high levels of use, then you may want to go with a gas version for the improved operating efficiency. However, if you live in a more temperate area or are looking for a solution for a holiday home, then choosing an electric version may be more cost effective in the long run. Ultimately, you will need to estimate your average usage and determine which way makes the most functional and financial sense.

More by this author

record player and mac Streaming or Downloading: Which Is the Best Use of Your Mobile Data? person on laptop Not Using a Digital Marketing Strategy? Here’s Why You’re Missing Out 2 men grappling Interested in Martial Arts? You’ll Need Gear Want to Improve Your Fitness? Consider Martial Arts wrapped present How to Select a Great Gift for Anyone and for Any Occasion

Trending in Budget Activity

1 6 Easy Ways to Treat Yourself 2 7 Websites to Sell Used Stuff Profitably 3 Seven Tips to Save Money While Renovating Your Home 4 4 Ways to Make Every Penny Stretch in 2017 5 Getting Out of Debt in 4 Simple Steps

Read Next

Advertising
Advertising
Advertising

Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

Advertising

Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

Advertising

I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

Advertising

Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

Advertising

So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

Read Next