Living Budget-Friendly: How to Save Money on Electricity

As the economy continues its dive, more and more Americans are finding creative ways to save money. There are several ways to cut back on your electric bill, freeing up hundreds of dollars to stash into an emergency account or pay off debt. Follow the steps below to save on your own electricity costs:

Examine your existing bill - most electric bills will show you important information including how many kilowatts of energy you have used for the billing cycle, a chart of how much energy you used during the last several months, a comparison of how much you spent this month compared to the same month of last year, an informative section about where most energy is consumed, and some tips on how to cut costs. Remember that knowledge is power. Once you thoroughly examine your bill, you can determine what you can not change (like the rate you are charged per each kilowatt) and what you can target to lower your bill (like how many kilowatts you use).

Make a plan - once you are committed to slashing your bill, have a family meeting to strategize creative ways to cut costs. This will be a good early lesson for any children you have as they see they have the power to contribute to the family and in the future that they have a choice to save money on unnecessary inflated expenses. Remember that your children's energy use. like their cell phones, game systems, stereos, and televisions, affect your bill just as much as your own devices. So if everyone is on board, you are more likely to see a difference. Additionally, children are great sources of information. Going green is the newest trend and your child may be able to tell you about something they heard at school that helps deter high energy use.

Start small - just like a diet, you want to take small steps to change how much energy you use on your electricity diet. If you make too many immediate changes and deprive yourself too much, you are likely to revert to old habits. However, if you start small and take tiny steps, these changes are likely to gradually change your lifestyle and will be things that you stick with.

Bundle services - many times when you have several services, like electricity, cable, water, and sewer, you are more likely to save money by bundling services and on administration costs. If you have multiple competitors in the area, call and check how much the competitors will charge you per kilowatt. Change service if you see a positive difference in what they offer and what you are paying now.

Target air conditioning costs - air conditioners are usually the highest cost of electricity guzzlers. If you have central heat and air, raise the temperature by a few degrees in the summer and lower it in the winter. This small step will eventually save you hundreds on your bill. Also, invest in a programmable thermostat. A quick Nextag search found one from Luxor for $27 that offers different programs for weekdays and weeknights and another model from Hunter Fan company for $40 that boasts electricity savings of up to 33%. This tactic may involve a small investment, but you will recuperate the cost of the thermostat within two months. Program the thermostat to be off during the hours nobody is home (like 8 to 4) and to turn back on a few minutes before everyone arrives. You can also program it to turn off when everyone is likely to be asleep. If you have window air conditioners, try to cut back by using just one and circulating the air with ceiling fans.

Target heating costs - after air costs, heat is a close second. Try to find ways to heat your home without using electricity. If you have a gas heater, use that. If you have a working fireplace, use that periodically. You can invest in a few small space heaters, but if you have too many on at one time, the cost will quickly add up. Some people even use stoves to warm their houses. For the record, this is not a good idea and will lead to very high electric bills. Experiment with different heating methods and see if you see a change in the bill.

Consider level billing - most utility companies will offer you level billing where you pay the same price each month, rather than so much per each kilowatt used. If you would prefer to have a predictable bill and advance knowledge of what your bill would be, this is one option for you. However, once you are on level billing, you will lose the power to make individual choices that can reduce your kilowatt usage and the cost of your bill. If you decide to go to level billing, I suggest that you take some of the steps listed here in the months prior to level billing. That way you can reduce the overall average of how much energy you use and will wind up with a cheaper monthly bill.

Unplug unused devices - the first person that I know of who swears by this method was a guest on Oprah who claimed that her monthly bill went down by hundreds, eventually winding up around the $70 range. The theory is that even items that are not being used are still consuming electricity and increasing your electric bill. Start first by targeting small things. Unplug cell phone chargers, unused kitchen appliances, electric razors, and hand held game system chargers. Then start getting in the habit of unplugging any unnecessary appliances that will not be used when everyone leaves the house. Unplug televisions, computers, lamps, etc. Only plug in these items when they are in use and then quickly unplug them after you are done with them.

Go outside - According to this site, the average American spends 5 hours a day watching television. Add in the time spent on computers and game systems and you will likely see why you spend so much money on electricity. Consider programming your television and computer to turn off after a certain period of time. Get outside with your family, get some fresh air, and save on your electricity consumption.

Consider alternative energy sources - certain communities may be able to offer you a chance to be part of a cooperative or you may be able to purchase energy from a wind or solar company. Also, consider using alternative energy in your own home or having solar panels. Many ecofriendly options offer a tax ride off.

Consider using batteries - certain items that are not used frequently during a day's time, such as an alarm clock or radio system, may save you money by being battery-operated, instead of draining costly electricity. You may even want to consider using rechargeable batteries to save even more money. I'm sure you're thinking, "Didn't you want me to unplug everything and now you want me to plug in a battery charger?" Well, if you can plug in one device in order to unplug many items, it's worth it.

Continue researching more options - this guide has provided you with several small, but impactive ways to save on electricity costs. These are practical things that every family can do, regardless of your current income or electricity costs. However, many more options abound. The following website breaks down how much money you will save on electricity by completing specific tasks. Additionally,this website offers more alternatives to saving on your electric bill, like using energy efficient appliances, properly spacing and arranging your refrigerator, and using a clothes line instead of a dryer. Just following a few of the steps outlined in this guide will save you hundreds of dollars. Pick the methods that work for you and sit back and enjoy the extra cash in your pockets.

Need help with other budget ideas? Check out my previous articles:

Creating the Perfect Household Budget

The Bachelor's Guide to Budgeting

Saving Money on Wedding Photography

Sources:

http://www.wikihow.com/Save-Money-on-Electricity

http://michaelbluejay.com/electricity/

http://www.energystar.gov/index.cfm?c=thermostats.pr_thermostats

http://www.nextag.com

http://www.sixwise.com/Newsletters/2009/April/22/Americans-Spend-Many-Hours-a-Day-Watching-Screens.htm