Drafty duct
First you need to find out if and where you are wasting energy. While an IRS audit may make you cower in fear, an energy audit is your friend. It can analyze the expected costs of powering your home, compare those to the actual amount you are paying, and suggest where you can be more efficient.

Some local power and gas companies provide energy audits as a free or very inexpensive service. Some may provide just an energy audit kit, so you can do it yourself. Call to find out what they'll do for you. Some private companies do audits, but be aware that they may be selling something you don't need.

"Try to get it free," Weissman advises. "Or do our home energy checkup at our site."

Yes, that's right, the Internet can help you do an energy audit. Try the interactive Home Energy Checkup on the Alliance to Save Energy's Web site. Also you can get an estimate of your energy usage at the Home Energy Saver site. These sites describe typical problems and potential savings, but you'll still have to take a detailed look at your own residence.

The biggest energy expenditure in a home is heating and cooling. If you do nothing else, you will save money by improving these systems, as well as insuring that the heated or cooled air stays where it belongs -- inside the house.

Tips to help you identify heating or cooling problems:

• Check for drafts around windows and doors.
  
  Hold a lit match next to gaps on a windy day. Where there is a draft, the flame will move or may even go out. Take a close look at the weather stripping in these locations, and make note of what needs repair or replacement.
  
  And measure the temperature in different areas of the house. Variances in temperatures indicate a problem with air leaks or airflow. If after fixing the leaks, you still find cold or hot spots, a review of your ventilation system may be in order. Ceiling fans can also help get air to all corners of a room.

• Check the age and condition of products.
  
  Old houses and antique desks are things to treasure, but a 20-year-old heating/cooling system that limps through each season is not doing your bank account any favors. Leaks and gaping seals are sure signs of an old appliance -- as is that ugly Harvest Gold paint from the '70s. Do yourself a favor and make a plan to replace these things. A new refrigerator uses about half the electricity of a comparable model sold in 1980.

• Check your usage.
  
  Compare this year's usage, month by month, to last year's. This will be easy if you saved your old utility bills or if your utility company prints this info on current bills. You can also check your checkbook for last year's amounts. If there is a sudden or gradual increase in usage, identify the changes that have happened in your life and family. Review whether you have developed lazy habits. Consider also that a problem may have developed in an appliance or the house's insulation.

The fixer-upper part

Now that you know where the money is leaking out, it's time to find a way to plug that hole. You have three options for stemming the cash flow from your bank account: repair, learn new habits or replace.

• Repair those energy suckers.

  Weather stripping gets worn out over time and needs replacing. On a larger scale, the time and expense it takes to install the proper insulation for your climate is an excellent one-shot investment that pays back in energy savings each month.

  Renters may feel at a loss here, but try talking to your landlord. An improvement only makes his building more valuable.

• Create good energy usage habits.

  Even if renters can't improve their physical space, they can at least lower their bills with good habits. Run dishwashers and washing machines with full loads. Remember what your parents said, and turn off lights, the TV and the computer when they're not in use. Turn off the air conditioner or heater when you leave for more than four hours.

  Maintenance is another key to savings. Replace the air conditioning or heater filter monthly during heavy usage. Make sure the system gets an annual tune-up. And, twice a year, unplug the fridge, pull it out from the wall and clean those coils back there. A well-maintained machine not only uses less energy, it keeps working longer.

• Buy energy-efficient products.

  When shopping for an appliance, remember that it costs more than its sticker price. You're committing yourself to paying the bill to run the thing for years to come. Reduce your total payment by looking for the Energy Star label on appliances, windows and other home and office products. These items can save you as much as 30 percent on your energy bills, according to ASE. When shopping, always compare the info on the yellow Energy Guide sticker as well.

  For most consumers, a heating/cooling system is one of the most-used home appliances -- and the highest energy guzzler. If you have an old system, you may want to consider replacing it. If your air conditioner has a Seasonal Energy Efficiency Ratio (SEER) rating of 6 or 7 and you replace it with a new system with a SEER of 13, you should be able to recoup the costs in a few short years, says the experts at The American Council for an Energy-Efficient Economy, a nonprofit organization dedicated to advancing energy efficiency as a means of promoting both economic prosperity and environmental protection.

  "A programmable thermostat is a good purchase," Weissman adds. "Use technology to do it for you, so you can relax."

No one's denying that the cost of new appliances or a heating/cooling system can be overwhelming. But they are investments that will start paying you back within a month by reducing your utility bills. Many of these purchases can pay for themselves in a few years -- in addition to increasing the value of your house. If you are strapped for cash, ask a lender about an Energy Efficiency Loan, which can be used toward home improvements such as insulation and heating and cooling systems.