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8 Ways to Save Money on Utilities

8 Ways to Save Money on Utilities

When it comes to major purchases made throughout the year, utilities are usually an afterthought. You can remember buying a new TV or reflooring your basement, but you really don’t think of how much you spend on a daily basis on electricity, water, and heat. And it all adds up.

However, there are many ways to save money on utilities over the course of your lifetime. First and foremost, you must stop thinking of utilities as a passive expense. By remaining conscious of every time you use specific utilities, you’ll know how and when you can cut back and end up saving in the long run.

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Go solar

More and more people are starting to see the benefits of switching to solar power. Although the installation can be a little pricey, you’ll end up recouping your losses through cheap monthly payments within a relatively short period of time. You can also take measures to ensure your home is prepared for solar installation, cutting down on maintenance and other fees related to installation. With solar energy, not only will you be saving money for yourself, but you’ll also be doing your part to help the environment.

Install an irrigation meter

Many people don’t know that when you use water from your faucet, you’re being charged not just for the use of the water, but for its disposal as well. While it makes sense that water that ends up going down the drain needs to be filtered once again, not all of the water you use goes down the drain. If you have a pool, or you use a lot of water in your garden or yard, you shouldn’t be charged a “maintenance fee” of sorts until the water actually goes back into circulation. An irrigation meter will document the discrepancy between water used and water drained so the water company charges you accordingly. If you use a large amount of water for anything other than washing yourself, your dishes, and your clothes, you might be throwing a ton of money down the drain.

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Steady your water heater temperature

Your hot water heater doesn’t need to be set any higher than 120°F. First of all, water warmer than that will almost certainly scald your skin. Second of all, there really isn’t much use for water that’s below the boiling point but still too hot to touch. Lastly, setting your water heater higher than 120°F causes it to work overtime, meaning it will likely end up dying out sooner than later. Keeping your hot water heater regulated can save you around $50 a year, plus lessen your risk of needing to repair or replace it.

Use reusable HVAC filters

It’s tempting to go with cheap filters for your heating and cooling units, thinking they’ll save you money and work just as well for the time being. But, despite being 2-4x more expensive than their single-use equivalent, permanent filters will save you money in the long run for a variety of reasons. Most obviously, they won’t have to replaced year after year. They’re easily cleanable, and are meant to withstand long periods of use. As long as you keep up with their maintenance, reusable filters ensure your HVAC system is not strained to the max. Like your water heater, if you don’t strain your HVAC system, you’ll decrease the chances of having to pay for maintenance or replacement later on down the road.

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Seal your home

You wouldn’t leave your door open all winter, would you? Everyone knows this would result in massive heating bills. But you might not realize the cracks in your walls and windows are doing just as much damage as an open door would do. Check your windows and door frames for cracks that will let cold air in, and fill them up with caulk or expanding foam as best you can. Do the same for any walls that meet the outside, especially where pipes come in and out of the house. You won’t realize the difference it makes to your comfort, and your wallet, until you do it.

Use Energy Star products

From lightbulbs to TVs and larger appliances, Energy Star products are designed to save you money while saving the environment from excess usage of resources. Under EPA guidelines, Energy Star products must not cost customers more than a conventional product would. Although they may be more expensive up front, Energy Star products are guaranteed by the EPA to save you money over a 5-year period.

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Use a thermostat

As mentioned before, utilities are too often considered an afterthought. Heating or cooling your home is perhaps the most effective illustration of this concept. When it’s cold out, you’ll turn on the heat to warm you up. But you likely won’t recognize when you’ve had the heat on for too long, and will end up allowing excess energy to be expelled to maintain the high temperature. Using a programmable thermostat allows you to forget all about your heater or air conditioning and let it do what it needs to do, when it needs to be done. Better yet, if you are able to set your thermostat on a timer, you can be absolutely certain you never go over a specific amount of time or energy, and your bill will stay relatively steady all year.

Do routine sweeps

Do a quick run through of your house (after reading this, of course). I can almost guarantee you have some electronics turned on that aren’t currently in use. Maybe a faucet is dripping. Or maybe you have the heat on but left a small window open in a bedroom. Be more conscious of these little things, as they pile up over the months and years and equate to hundreds, perhaps thousands, of dollars wasted that could have gone elsewhere.

Featured photo credit: Pat Glennon / 63/365 v2.0 / Flickr via farm4.staticflickr.com

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Matt Duczeminski

A passionate writer who shares lifestlye tips on Lifehack

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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

Reference

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