Oil and water don't mix, and neither do personal and project funds when it comes to home improvements.

Homeowners should separate household cash from monies spent on remodeling or makeover jobs budgeted for more than a few thousand dollars.

It makes sense to keep "milk money" a safe distance from project funds. For one reason, it's simply good financial practice. Mixing paychecks and routine bills along with expenditures for materials and construction labor can disrupt household budgets.

Even if you perform the work yourself, you'll find it easier to know which pocket you'll dip into as your project chugs along.

The most manageable solution is to open a short-term checking account for the life of the project. Banks typically offer free checking to existing customers. Other banks dangle free checking as an enticement to win new business.

Short-term checking is especially helpful if mortgage or home equity loan financing is involved. Most lenders offer online capability to help manage and track where the money goes. This creates a helpful paper trail in the event conflicts arise with contractors or retailers. You may even be able to print checks from your home computer, but check with your lender about that option.

You'll find yourself more organized, too. Online or monthly statements provide a clearer picture of where your money is -- or where it has gone -- if the picture isn't clouded by routine household expenses.