In preparation for the release of the audiobook version of Live Well, Grow Wealth, I'll be sharing excerpts each week on this blog.
This excerpt is from Chapter One, Live Within Your Means. I suggest categorizing your expenses as absolutely necessary, necessary but reducible, discretionary but important, and totally unnecessary. This post discusses necessary expenses such as utilities and gasoline.
At first glance, the category labeled necessary but reducible may contain
expenses that are fixed; indeed, once you receive a utility bill, you usually
cannot negotiate a reduction in the amount unless there's been an anomaly. But
look for ways to reduce these bills in the future. Tiny changes in your energy
consumption behavior can make a difference over time. Shrinking your carbon
footprint and preserving the environment go hand in hand with saving money on
utility bills and thus reducing your financial footprint as well. Take shorter
showers, and if you belong to a gym, take some of your showers there.
Fix leaks promptly. Don't use the toilet as a
trashcan. Don't leave the water running while you brush your teeth. Unplug or
turn off appliances and lights not in use (including cords and chargers plugged
into an outlet but not connected to a device). Install timers and thermostats. When
the weather is mild, open a window instead of turning on the air conditioner. My
husband and I halved our electric bills (compared with what they had been for
the previous owner of our house) by adding screens and installing an attic fan,
so we don't have to run the air conditioner in the shoulder seasons.
Don't leave windows and doors open when the furnace or
air conditioner is running. As my father used to say, while I was letting the
cat hover in the doorway deciding whether she wanted to stay in or go out,
"Shut that door! We're not heating the whole neighborhood!"
When heating your house in winter, don't keep it so
toasty you can wear shorts. Put on a sweater and some warm socks and turn that
thermostat down. Every degree you can stand to push it down will shave dollars
from your bill. Same thing goes for air conditioning in the summer. It's hot
outside. Wear your summer clothes inside; why turn your house into a deep
freeze? Not only will you save energy, but you'll stay healthier, as your body
won't have to cope with extreme temperature changes.
In some areas, certain utilities have been
deregulated—gas, telephone, cable, internet—and thus there are multiple
providers competing for your business. Keep your eye on promotions offered by
competitors, and ask your provider to match them. If you're not happy with your
service or the response to your request for a lower rate, consider switching if
the competition offers a better deal. But beware of limited-time promotions
where the savings are short-lived; the new provider's regular rate may not be
any better than what you currently pay, and the service could be inferior.
Gasoline may seem like an uncontrollable expense,
especially if you have to commute a long distance to work. Prices shoot up and
down at the whim of the oil companies. Pay attention to gas prices; while I don't
recommend driving out of your way to fill up at a cheaper station, try to find
the one with the best price along your usual route. Applications such as Gas
Buddy can compare prices in an area and direct you to the best option. Can your
car run as well on regular as on premium? Many cars do. If so, you’ll save ten
or even twenty cents a gallon. Some stations offer discounts for paying with
cash instead of credit; some locations, such as Kroger, offer discounts at the
pump with affinity cards. If you belong to a warehouse club such as Costco or Sam's,
that store may offer lower prices on gasoline, so plan to fill up when you do
your shopping there.
Avoid unnecessary trips by combining errands. Some
errands can be eliminated altogether with a phone call or an email. Carpool,
bicycle, walk, or take public transportation when it makes sense. Does your
employer allow telecommuting?
Drive conservatively: you consume more gas at
excessive speeds. Charging up to a traffic light and then slamming on your
brakes wastes fuel. Clean out your car; no use hauling around that bag of
fertilizer for weeks after you bought it because you were too lazy to take it
out of the trunk.
To learn more, read Live Well, Grow Wealth by Sharon Marchisello.
No comments:
Post a Comment