According to several studies performed in 1996, homeowners who live in insulated houses pay 40 percent less in energy costs than those in uninsulated houses. Imagine the savings you could find if you were to insulate your home better.

The principle behind insulation is straightforward: it helps keep heat from escaping in the winter and it helps keep heat from coming in during the summer. It does this by impeding air flow. In any home there are many places that heat energy can flow from the inside to the outside and vice versa. Generally this heat energy flow happens in the walls, floors, doors, windows, and roof. Obviously you can't insulate your windows, but by changing, adding, or improving your insulation, in your attic, for example, you could reduce the heat flow significantly, thus cutting the cost to heat, or cool, your home.

In short, adding insulation can reduce the cost to maintain a desired temperature environment within the home's living space. This is true no matter who you are, or when you built your home.

The majority of heat transfer comes through the walls and the roof. If you properly insulate the wall cavities, and the attic, or roof space in your home, you can effectively reduce your heating and cooling costs by an average of 30%. Thus, for an average size home, this is a savings of $18-$35 a month.

To help cut heating costs even further, insulating jackets and wrappings can be used on hot water tanks and pipes to prevent heat loss from these systems as well. With less heat needed to keep the water hot and less need to circulate the heat to keep the home warm, and if less unwanted heat is being released then you will find that you will spend far less overall .

In addition to the savings you get from the insulation itself, because energy efficiency, and going green is such a big deal right now, there are also several government rebates being offered to those that do upgrade their insulation, or install more. This makes it even more cost effective to do so, and in some states, it is even free, or you can get paid to do it. So, check with your local energy department, and see what options they offer for you to add more insulation to your home.