Ease the Energy and Save Money!

Ease the Energy and Save Money!

I was watching Good Morning America (GMA) last weekend and they have been showing charts of different U.S. cities breaking heat records for that day and their forecasted high temperatures over the next 4 days. 

Not everyone buys in; however, from the Hoover Dam to Antarctica, I have seen it for myself, and climate change is real!  Last month, I was on vacation in Redding, Northern California and it was 115 degrees the Friday I flew home.

The highest temperature I have ever endured was 120 degrees in Sydney, Australia in January 2020, during the time there were wildfires across the continent.  I vividly remember standing in the street in front of our hotel and noticing a different type of burning smell.  It was my flip-flops burning on the blacktop!

When the electric bills come in, I usually don’t pay them any mind, unless it’s summertime as I know they will be higher than usual.  This summer, between rising electric costs and the hottest July on record since the 1800s, many electric bills are setting the wrong type of record with 25-40% increases as we have been constantly running our AC units.

As my longtime “Financial Wave“ readers know, a dollar saved is at least $1.20 earned, so here are my 11 money-saving tips on your electric bill going forward and throughout the year:

  1. Close Your Shades & Blinds:  Closing shades and blinds can have an impact on energy costs.  For example, using an umbrella outside to shade oneself can bring the temperature down close to 30 degrees.
  2. AC Unit Tips: Use the economy button.  If you already use economy, try turning it up by 1 degree.  Consider not using AC on lower-humidity nights.  Change your filters every year. 
  3. Adjust Your Refrigerator and Freezer Temperature: Set your fridge to 37 degrees and freezer to 0.  This will keep your food fresh, and your fridge and freezer won’t need to work as hard to maintain the temperature.
  4. Wash Clothes in Warm or Cold Water: Not washing in hot water will save electricity, and your water heater won’t need to work as hard. 
  5. Consider Taking Shorter Showers:  Less water to heat and you will also be saving on water costs.  Hot water is usually the 2nd largest expense in powering most homes. 
  6. Adjust Water Heater Temperature: The default water temperature on some heaters is 140 degrees.  Lowering it to 120 degrees can reduce your energy costs as per Nerd Wallet, by 4-22% annually.
  7. Consider Purchasing Energy Efficient Appliances:  If you are already in the market for a new washer, water heater or dishwasher, buy one with the EPA’s “energy star.”  It uses 12% less energy and 30% less water on average than a regular model. 
  8. Switch to LED Lighting:  Lighting can run an average of 15% of a home’s total energy usage.  Save an average of $225/year (more with larger homes) by swapping out incandescent bulbs. Look for the bulbs that also have the Energy Star label!
  9. Install Dimmer Switches:  Dimmer switches allow you to adjust the brightness of the lighting to both set the mood and save electricity.
  10. Consider Using Smart Power Strips: Some of your electronics such as TVs, computers, and speakers never truly power off as they sit in idle or stand-by mode.  The electricity trickle can have a 5-10% effect.  This might not sound like much; however, when you add up all 11 of these tips, there is real $$$$ to be saved!
  11. Request a Power Audit: Many utility providers will often conduct a home energy audit; some will do it for free.  An audit can help uncover issues such as faulty seals on windows and doors or leaky ductwork which can drain your energy.  An audit can also give recommendations on repairs and other money-saving tips.

Give it a try and heed these 11 tips.  Should we have above-average humid temperatures this fall, you will be well-positioned to save money every month.