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Why You Should Consider Using Sustainable Energy To Live Off-The-Grid

Why You Should Consider Using Sustainable Energy To Live Off-The-Grid

More and more Americans are entertaining new ways to sustain energy by living off the grid and living in tiny houses equipped with the usage of solar panels, wind mills, and even with water power.[1] In 2016, more than 18,000 families left the big city life to flee to mountains and other remote areas for a more peaceful, less stressed life.

The average American salary is $51,000 per year and it costs nearly 24% of that income just to run a single-family home of 1500 square feet per year.[2] With property taxes, insurance, credit card debit, loans, mortgages, and living expenses absorbing another 68%, only 8% of an annual salary is left for emergency, entertainment, or vacation expenses. People are realizing there’s more to life than spending your health to gain your wealth.

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Sustainable Living

Sustainable living off the grid is getting increasingly more popular in the United States, especially with increased living expenses making people opt for better ways of living than spending all their income on living expenses alone. The idea of sustainable living off-grid has also been catching on worldwide with the introduction of more efficient and affordable stand-alone renewable energy systems that produce clean energy.[3]

In fact, a 2015 working paper from the International Renewable Energy Agency (IRENA) estimates, on a global scale, that approximately 26 million households are hooked up to an off-grid system. Out of that number, 20 million are powered by photovoltaics (solar homes), while 0.8 million are powered by small wind turbines.

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While the data reflected households with renewable energy systems, larger set-ups could power mini-grids for small communities, such as the case for Tokelau and other Pacific Island communities. Moreover, off-grid systems could also provide power for a commercial entity in a stand-alone set-up.

Investments

Sustainable off-grid living requires investing not only in a set of renewable energy sources, but also in equipment to ensure a “balance of system” exists, according to the online energy saver resource Energy.Gov. The ideal “balance of system” occurs when all components facilitate safe transmission and storage of electricity.

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Among this set of equipment, components include a reliable battery storage to sustain daily power requirements. Procuring a battery storage is easier now due to the decline in material costs and technological advancements introduced to ensure reliability.

According to Energy.gov, there are deep cycle batteries for micro-systems with a reclaim rate of 80 percent.[4] These storage units could last up to 5 to 10 years, with costs depending on factors, such as capacity and location climate condition. Another essential component is the charge controller, which basically prevents the overcharging of the storage system by shutting off flow or diverting excess power of an auxiliary load.

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Benefits

The decision to detach from the main grid to satisfy power requirements often stems from a need for a more sustainable and affordable power source and a conscious decision to reduce one’s carbon footprint. Tapping into the power of the sun, wind, or any natural resource means less greenhouse gas emissions and less impact to the environment.[5]

According to the International Panel on Climate Change, the life-cycle of global warming emission from renewable energy is low compared to natural gas and coal, two materials that are often used in commercial-level power generation.

A study released this month by Lazard, a leading financial advisor and management firm, indicated that, in the last 7 years, the decline in material expenditures for wind and solar PV production, as well as efficiency improvements, have driven down costs. This indicates that renewable energy for off-grid systems is now more accessible and affordable to a larger segment of the population.

Featured photo credit: Nrel.gov via nrel.gov

Reference

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Tammy Sons

Master Gardener, Horticulurist, Arborist

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

Reference

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