Surprising Budget Ideas

[daylatedollarshort]

Thanks for clarifying.

I think I didn't quite see how the numbers could add up in DLDS' situation because my own costs were so different: My electric bill only runs $35-45 a month so there simply isn't thousands to cut out (electricity for 2 adults in 1200 sq ft house with heating/cooking/dryer on natural gas, no air conditioning). I was confused because even if you double or triple my bill (to account for a larger family/home), there's still no way to save thousands.

Our utility company reports show our predicted annual usage for gas and electricity combined to now be under $1.6K for the year, previously $4k, worst year DH has tracked was $4.4K. We have much more sq feet than 1200 to heat and cool, a not energy efficient house with an electric dryer and cooking, AC and more people. We want to downsize before too long, so we don't want to spend money on insulation or anything major. The reductions mostly came from maybe 50+ different little energy saving action items all adding up, like turning off the ice maker, turning off lights, putting motion sensor LED lights in the hallways and stairs that use rechargeable batteries, opening windows in the morning when the air is cool, and a lot of the stuff previously mentioned like the drying racks, thermal cooker, solar lights outside and eliminating a fan at night.

We still have a few more action items to implement and some that are not yet reflected in the $1.6K, so I am hoping to get a few hundred dollars more below that figure before the year is out.

 

[athena53]

Lots of our expenses were tied to the fact that we had that house. Our mortgage was expensive. Maintenance was expensive from little things to the big things (repainting the interior of a 4500 SF house is a lot more expensive than repainting the interior of a 2000 SF house).

I'd noted earlier that sometimes downsizing doesn't free up all that much cash when you factor in moving and transition costs, but in your case it sure did. (And DH and I are meeting with a realtor today!)

I did want to mention, however, that moving from a HCOL area to a LCOL area made a HUGE difference in our ability to save for retirement over the last 11 years. We moved for my job (market in my field dried up in the NY/NJ area after 9/11). DH and I had just married, and sold 2 houses in NNJ and bought one that was twice the size of the one I'd sold and half the cost. Housing costs (including exorbitant property taxes) were eating up half my take-home pay in NJ.

If you're in a field where you can move from a HCOL area to LCOL with little change in salary, it makes a big difference.

 

[photoguy]

Our utility company reports show our predicted annual usage for gas and electricity combined to now be under $1.6K for the year, previously $4k, worst year DH has tracked was $4.4K.

That's an impressive amount of energy reduction.

I see that you're including gas. If I add that in my energy bill came out to roughly $80-90 month which is only a little less than your 1.6k/year (esp. considering less people/sq footage).

 

[Rustic23]

Originally Posted by daylatedollarshort View Post
We have still saved thousands per year on our energy bill,

I just checked our last year's total electric bill. $1,200. I can't believe I could save thousands of dollars using led bulbs.

 

[Mulligan]

Thanks for clarifying.



I think I didn't quite see how the numbers could add up in DLDS' situation because my own costs were so different: My electric bill only runs $35-45 a month so there simply isn't thousands to cut out (electricity for 2 adults in 1200 sq ft house with heating/cooking/dryer on natural gas, no air conditioning). I was confused because even if you double or triple my bill (to account for a larger family/home), there's still no way to save thousands.



I dug up my last full bill from Feb (my last bill because we moved) and we used 257 kWH @ $0.13. However, we haven't done anything to reduce our electricity usage. PG&E tells us we're using similar amount of electricity to other homes our size but based on responses here it seems like we are on the very low end for both total kWH and cost per unit.

I am in the same boat with you. I have a smaller house of around 1500 sq. feet, natural gas for heat, and electricity rates are very inexpensive here. Playing around on the edges changing out bulbs and such have no meaningful change. My biggest reduction appears to have came from a secondary reason. I put a new metal roof on and replaced asphalt shingles. House is running 3/4 degrees cooler inside than last spring as the metal is reflecting the heat away instead of soaking it in. Knowing me, this summer instead of pocketing the savings I will reward myself by cooling the house to a lower temperature.


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[daylatedollarshort]

Some utilities will allow you to install a demand controller. Have you looked into that?

No, I have never heard of that. What is it?

 

[sengsational]

No, I have never heard of that. What is it?

It is a thing that will secretly turn off your A/C when you really need it to run. You'll start sweating, not only because its hot, but also because you wonder if you need to call the repair man.

 

[target2019]

For reference, I just looked up our gas/electric bill totals since 2006. The total has slightly declined each year for ~3500 sq. ft. in the NE. There have been some energy efficient changes over the years.

EDIT/ADD: Yearly, the cost is about $3500, so $1 per sq. ft. on a yearly basis.

In '95 when we moved in, one month's gas bill was over $500. That was quickly remedied by shutting off heat in the greenhouse (lol). Initially we saw some yearly comparisons for previous owners, and it was a wake-up call.

If you just look at pay-back periods, you may do nothing. We try to balance these decisions with how much better we'll feel in all respects. When we redid the kitchen, it made sense to get rid of the electric dryer and put in a gas line for dryer in next room over. That's an example of getting a win on two fronts, instead of trying to justify a purchase or improvement on just one factor.

Reminds me, time to turn off the always-on pilots on our heating systems. I think that saves more than $50 per month for the next 3-4 months. Also gives me a reason to leave heat off in September...

 

[Bestwifeever]

It is a thing that will secretly turn off your A/C when you really need it to run. You'll start sweating, not only because its hot, but also because you wonder if you need to call the repair man.

We were in our area's pilot study for that device. You have nailed its purpose!

Since the OP almost lives on a shoestring already, I suggest a part time job on the weekend vs trying to save more money.

 

[daylatedollarshort]

Originally Posted by daylatedollarshort View Post
We have still saved thousands per year on our energy bill,

I just checked our last year's total electric bill. $1,200. I can't believe I could save thousands of dollars using led bulbs.

I didn't say everyone could, or even that my family had, saved thousands a year from LED bulbs alone. What I posted was "The reductions mostly came from maybe 50+ different little energy saving action items all adding up."

From Seeking Alpha -

"Cree (CREE) estimates that if the 5 most used 60 watt incandescent bulbs were replaced with Cree's 60 Watt equivalent LED warm white bulb, a homeowner or business owner can save $61 a year in energy costs.**Based on 6 hour use per bulb per day using national average electric rate of 11 cents per kwh.
At $12.97 per 60 Watt equivalent LED bulb, 5 would cost $64.85 + tax. This is a 100% return on investment in a little over 1 year."

Cree: Society Has Yet To See The Light - Cree, Inc. (NASDAQ:CREE) | Seeking Alpha

With many CDs paying maybe 1 - 2% a year these days, personally I think 100% ROI in one year on light bulbs is a great investment.

 

[daylatedollarshort]

It is a thing that will secretly turn off your A/C when you really need it to run. You'll start sweating, not only because its hot, but also because you wonder if you need to call the repair man.

Oh, we do have that option. I just didn't know what it was called. DH already nixed that idea, especially now that our bill is already so low compared to what it was. I think it would only save us $50 a year and we have some 100 degree days when having the A/C on makes life a lot more comfortable.

 

[NW-Bound]

How much one saves depends on the local electric rate. Many places in California have outrageous rates, and it pays to economize there.

My rate is not as high, but I have been using CFL bulbs for years. I do not do much else to conserve. My electric company Web site let me enter in my home data (2700 sq.ft., 2-story, swimming pool), and it told me that my monthly bill is $40 lower than comparable homes in my area. So, that's almost $500/year, with little costs and no change in lifestyle.

 

[arky]

We have still saved thousands per year on our energy bill, ..........

Wow, your energy bill must be quite hefty ! My gas and electric bill for all of 2013 was $1182.

 

[ERD50]

Our utility company reports show our predicted annual usage for gas and electricity combined to now be under $1.6K for the year, previously $4k, worst year DH has tracked was $4.4K. .... The reductions mostly came from maybe 50+ different little energy saving action items all adding up, like turning off the ice maker, turning off lights, putting motion sensor LED lights in the hallways and stairs that use rechargeable batteries, opening windows in the morning when the air is cool, and a lot of the stuff previously mentioned like the drying racks, thermal cooker, solar lights outside and eliminating a fan at night. ... .

I'm always looking for ways to save, especially on utilities (environmental effects bonus). Now it's a little tougher to understand and learn where your savings are from since it is gas/electric combined, but if I assume most of the savings were from electric (it doesn't sound like you do much heating, and gas is fairly cheap anyhow), it's hard to fathom that a lot of 'little things' could add up to that kind of savings, even at your high rates.

Some rough numbers: Your previous $4,000 (not your high), versus your current $1,600 is a $2,400 savings. If all the savings came in at the top-tier rate of $0.36 kWh, that is 6,667 annual kWh saved. To put that into perspective -


How many 60W light bulbs, burning 8 hours/day would this amount to?

0.060 < kWh of 60W bulb
8
365
175.2 < annual kWh of a 60 W bulb on 8hrs/day * 365 days
38.1 < 6,667 annual kWh saved divided by 175.2 annual kWh of the 60W bulb

so savings represents over 38 60 W bulbs burning 8*365!

So it's just hard to see how a bunch of little things could add up to something like turning off 38 60W traditional bulbs that were running 8 hours a day, every day (not even accounting for the energy used by replacements). That is an awful lot of 'little things' being used for a lot of time!

Your high top-tier rate does bring the pay-back period down to ~ 1/3rd what I would get, so many savings certainly pay. It's just hard to attribute such a reduction to light bulbs and insulated cook pots. Now, opening windows instead of running the A/C could be a big one depending on how often that option can be used, but we already do that - A/C doesn't come on until a combo of heat/humidity just cannot be handled any other way.

I'm guessing that lifestyle changes like not using A/C so much are a much bigger part f the delta than any energy saving gadgets.

For reference, our Electric for the year was ~ $1,000 (includes delivery, taxes and other fees, some of them are fixed rather than per/kWh), which would be over $3,000 at your top tier rate, so our usage is very roughly in the ballpark. Adding in gas would bring it up of course, as we are in the midwest.

-ERD50

 

[Rustic23]

My point is with a little over $1,000 a year electric bill, I would not see the savings if I did all or most of what you talk about. I will take Cree at there word, however, my guess is that on average is I added up all the time lights were on I would have somewhere between six to twelve hours of 'light power used' a day. My savings would be about $30 a year, and for that I would have to replace between thirty and forty light bulbs. Example there are seven light bulbs in our master bath. They are on less than 10 min a day. (average sometimes more most less) Same with the kitchen 15 bulbs, some on for an hour, some less than five min. Now on the side onf full disclosure most of the bulbs in our house are CFL's.

 

[ERD50]

....

Reminds me, time to turn off the always-on pilots on our heating systems. I think that saves more than $50 per month for the next 3-4 months. Also gives me a reason to leave heat off in September...

$50 a month for pilots! How many 'heating systems' are you talking about?

I have gas bills in the range of $25~$35/month in the summer. That is two pilots, a 40G gas water heater for 2-3 people, gas cooking and natural gas grill. And there are some fixed costs in that bill.

A standing pilot can't really be using much at all. I don't know if this is accurate, but I've heard some recommendations to leave the pilot on, as the heat keeps out moisture and can extend the life of the heat exchanger. May be an old wive's tale though, I dunno. But I generally just leave it on.

-ERD50

 

[NW-Bound]

Please note that CFLs and LEDs are comparable in electric consumption.

LEDs have the advantages of better light color, instant time to full-light output, longer life, but those come at a higher purchase price.

 

[Helena]

.

While a penny saved is a penny earned... ultimately
it's the bigger costs that bleed you dry... paying
interest on debt, mortgage [pay it off before you
retire], utilities, insurance, taxes, etc.

Once one is retired, there is little reason [other than
lifestyle choice] to live in a McMansion in an expensive
part of the country. One's personal house is a liability.
Even if the house is paid off, more house equals higher
insurance, higher property taxes and higher utilities.

.

 

[athena53]

.
One's personal house is a liability.
Even if the house is paid off, more house equals higher
insurance and higher property taxes.

Agreed- and the realtor DH and I met with was talking about some communities where monthly maintenance (which included lawn mowing, snow plowing and trash/recycling) were $250-$300/month. You pretty much have no control over who the HOA hires to do this work, and no control over price increases.

We were also talking about the palatial houses in one historic section of town (Boss Pendergast used to live in one of them) on my previous commute and she said they're money pits. I just shudder at the wide, expansive lawns and wonder what it costs to keep them so perfectly manicured (not a DIY job), but she said the interiors always need fixing up.

 

[target2019]

The way I view energy savings is to consider that each dollar wasted can never be recovered. I look for opportunities to save $10 on electric bill so that I offset some of the rate increases.

 

[daylatedollarshort]

it's hard to fathom that a lot of 'little things' could add up to that kind of savings, even at your high rates.

If you want to think I am posting fake before and after annual cost energy numbers for some reason, your choice. Our after numbers are less than similar homes and yet still higher than energy efficient homes on our utility company graphs, so they fall within the bell curve for similar homes in our area for energy use. I am not sure where the hard to fathom part comes in, but again, your choice to believe whatever you want to believe is true.

 

[ERD50]

If you want to think I am posting fake before and after annual cost energy numbers for some reason, ... .

Nothing of the sort. I'm simply trying to understand where the savings is coming from. I can't get the numbers to add up in the way you describe. What do you make of my numbers?

Without understanding it, it's pretty hard to tell if this information about energy savings gadgets is useful to me, the OP, or anyone reading this thread. And for some of us, some of these look like they would be expenses, not a savings at all, which was what the OP (and many of us) are looking for (savings).

-ERD50

 

[someguy]

If you want to think I am posting fake before and after annual cost energy numbers for some reason, your choice. Our after numbers are less than similar homes and yet still higher higher than energy efficient homes on our utility company graphs, so they fall within the bell curve for similar homes in our area for energy use. I am not sure where the hard to fathom part comes in, but again, your choice to believe whatever you want to believe is true.

A couple random thoughts:

-Natural Gas prices, at least in my neck of the woods, have been considerably lower per unit during the last 1-2 years (compared to the years prior to those).
-Did you change thermostat settings?
-Did you adjust for heating/cooling days year to year?

 

[Helena]

Agreed- and the realtor DH and I met with was talking about some communities where monthly maintenance (which included lawn mowing, snow plowing and trash/recycling) were $250-$300/month. You pretty much have no control over who the HOA hires to do this work, and no control over price increases.

We were also talking about the palatial houses in one historic section of town (Boss Pendergast used to live in one of them) on my previous commute and she said they're money pits. I just shudder at the wide, expansive lawns and wonder what it costs to keep them so perfectly manicured (not a DIY job), but she said the interiors always need fixing up.

Thanks for bringing that up.

HOAs were not on my radar because I've never had to deal with one. But I've heard many horror stories from those who do
and the monthly HOA cost can be more than other people pay in rent/mortgage.

I have paid the same professional to mow my lawn for 14 years
[no need for snow removal here.] He has never raised his price.

.

 

[W2R]

I know it's been mentioned, but cancelling cable TV and watching over-the-air broadcasts has been wonderful for me. I save $110/month and honestly, I am watching the same shows and the HD is just as good or better. I have Amazon Prime but since I "cut the cable" I have streamed only part of one show. I don't feel I am missing anything.

My reasons for changing my cable service were not that I needed the money, but that I need to get at least some value from the money I spend. The extra money saved is just a bonus and I am happily blowing it on whatever appeals to me.

Next, the landline is going! I get zero value out of having it.

Living in a relatively small (1600 square foot) house helps a lot in keeping property taxes, insurance, maintenance, and energy bills down.