What could you do with $500? I’m betting a delightful array of shopping spree possibilities are flashing through your mind. Wondering why I’m asking?
$500 a year is the amount you could end up saving on your electricity bills by following a few simple tips to be more efficient. By increasing your efficiency, you lower your monthly bills, and lowering monthly bills lead to annual savings.
One of my favorite things to do is to share numbers. It’s easy to say you’ll “save money”, but not easy to say how much or what quantity of changes need to occur to save. So buckle up for some hard numbers on how to save cash on electricity bills, and pad your pocketbook in the process!
Consider the average
Do you know how much power is used every day in an average household? 20 Kilowatts for us here in Australia. That means an average of 20 per day, 140 per week, 560 per month, and up to 7,300 per year. If you consider those figures and compare them directly to the current costs of electricity (between 24-28 cents per kilowatt), that adds up to $2,087 with taxes.
So what do you do? Work to lower that consumption. If you lowered your consumption by just 5 kilowatts per day, that should save you 25% on your electricity bill. There’s your $500.
While it sounds like a lot to say “cut your electricity usage by 25%”, saying cut it by 5 kilowatts per day doesn’t sound so bad does it?
Consider the following tips when working to reduce your energy consumption:
- Harness the power of the sun and let it charge your hot water heater, rather than powering it.
- Dry clothes by hanging them rather than drying them (savings of up to $100 per year)
- Use cold water washes rather than hot water washes (savings of up to $50 per year)
- Take a shorter shower. This by itself can save up to $140 every single year. For ideal results keep it to less than 5 minutes.
- Slow down on using the air conditioner through the summer. This can, by itself, save between $200-$350 on average (depending on the type of system that you have).
How has it worked?
In my daughters’ household, which is a family with two adults and two kids, they decided to implement some of these changes and see what it could do to their bills. And you know what? They managed to lower THEIR average to the average 7.51 kilowatts per day that single people normally use, leading to a savings of over $1,300.
What does their usage look like?
I will note that their usage is a little different from the typical household. They program their clothes washing and dishwasher to come on only in off peak times, do most of the cooking by hand, and don’t plug in electronic devices that aren’t low on battery. Every little bit adds up. That’s why I’m offering you the chance to save $500 per year, not $1,300, unless you want to take more extreme measures.
They don’t have to worry about the rates of electricity, high, low, or in between. That’s a huge freedom that goes a lot further than giving them a little extra pocket change. What’s more? They feel responsible about their electricity use, having taken full control over their utility requirements.
And you can too. With just a few of these tips you can save yourself hundreds of dollars, starting today. So what are you waiting for? Get out there and start saving!
We’ve got lots of simple and not so simple ways you can start to reduce your electricity bill on our website, moneysavvymums.com.au so go on, have look and start saving!