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The Surprising Extra Costs of Driving an Expensive Car

Are cars a big deal to you? Do you really like cars, and allocate a significant part of your budget to them?

Not me. At this point, I only spend on gas, oil changes, and the usual routine ongoing expenses with driving a car. The car itself is paid for, which is nice. What’s even better is that not much was spent on it to begin with. It’s a Honda Accord that I bought a few years back, and it was 2 years old when purchased.

Well, I suppose I shouldn’t say not much was spent, since I could have (should have?) picked up something cheaper. It just seems like an inexpensive car compared to what I see many other people driving, including some I know. Including a person who just recently told me that he bought an new Audi. This car goes for somewhere in the range of $50k when new.

I’m sure he makes a fair amount more than me, based on what I would assume about the situation. So, he can afford it while I can’t.

Sure I would like to drive that car. Sometimes it can be hard to avoid those little sparks of envy. After all, no matter how much I think keeping up with the Joneses is a waste of time, I’m only human. But I’d more like to be able to afford to have the choice to buy it. Knowing full well I wouldn’t actually buy it!

Analyzing how much more it cost to drive the expensive car was an exercise that made me feel better about it. Here’s the thing: the difference in the purchase price of those 2 cars is around $35k. Not a small amount!

Looking at this further, let’s assume that each car is driven for 7 years. This means that an incremental $5k per year was spent on the more upscale car by this guy. That comes out to just over $400 per month. It doesn’t matter if it was purchased up front or not, this is the effective price paid to use the car, regardless of payments.

Let’s assume he drives the car only 1 hour per day. That’s very likely too high of an estimate, since I believe he has a commute that isn’t more than 15 minutes each way. But let’s say 1 hour per day, to account for more driving on weekends. That means around 30 hours per month. To be even more generous, let’s go ahead and tack on another 10 hours. So let’s make it 40 hours of driving per month, which I’m guessing is more than what he actually drives anyway.

Doing the math, he’s spending $400 per month extra for 40 hours of an upgraded ride. Meaning, just over $10 per hour!

Would you pay $10 per hour of driving to upgrade your car? I sure wouldn’t. That wouldn’t make sense, or be worth it.

Yet, that’s essentially what this guy is doing, compared to a more modest yet solid alternative.

I know I’m probably rationalizing this a bit, but it makes me feel a lot better about the gently used car I bought and am still driving 🙂

My Questions for You

Have you ever thought of the costs of upgraded or expensive alternatives in this way?

Would you pay that much more for a better ride?

Are there any other purchases that you have made that have been worth the incremental costs, when viewed in this way?

Big Long-Term Savings By Substituting No-Name or Store Brands for Premium Brands

By Squirrelers 14 Comments

We all have our favorite brand names. No matter how value-conscious we might be, each of us – consciously or subconsciously – probably has a few brands that we for whatever reason trust over the alternatives.

In some cases, there’s real merit to it. There are some brand-name items that taste better , and some brand-name products that simply work better. I’ve had my share of both of those. But, I’ve also seen a few examples recently where there was seemingly little difference in the actual items other than the price.

Here are two examples:

Coffee

Yes, we know the notion of doing away with a gourmet coffee drink every day is one of those popular examples used in showing how little daily savings can add up. It’s a good point I agree with, in the case that you want to give up something entirely. Which, of course, makes sense quite often.

If you want to keep what you like, but want to save money, there are ways to save money. I previously shared my extremely frugal coffee savings method, which was of course over the top. However, if you simply want to enjoy a regular coffee each work day, there are legitimate ways to save. Simply buy a less expensive brand.

A great example was at a prior workplace where there two types of coffee offered in the cafeteria: premium, and “no-name” varieties. For a medium cup of premium (with a known brand name), it came out to about $2.40. Not exactly inexpensive! However, the no-name “house” variety went for about $1.30 for the same size. Interestingly, talking to the cashier, there were people that regularly bought the more expensive coffee every day. For me, I could detect little difference between the two, having tried each.

So, if somebody gets coffee every working day, the cost of getting the premium version can really add up. Over the course of a year with 250 working days, that comes out to $275. Just for buying a branded coffee over a house variety, with both being the same otherwise.

First Aid Products

Okay, so this is quite a departure from coffee! Yet, it’s another area where I noticed a difference in prices that made me wonder why people would spend so much more.

I was in the first aid aisle of a local retail/grocery, and came across what I was looking for: a topical anti-biotic ointment. Good to have around, in case of cuts or minor injury. Anyway, I saw a small tube of a premium brand selling for about $4.50. Nearby on the shelf, there was a store brand version for sale for about $2.50.

Now, when it comes to health care, I’d be instinctively more likely to think about a brand name I trust versus something else. However, in looking at the ingredients of the two items, they didn’t seem to be different based on the labeling. In this case, why pay $2 more?

This can all really add up! Well, think about that coffee example. That’s $275 right there. Then go back to the grocery example. If you can save $2 each week by making substitutions on household goods or food, that comes out to another $260 per year. Just those two changes – switching coffee varieties and $2 in grocery savings a week – can add up to $535 annually.

In this example, just imagine if you did this every year for 25 years. It’s $13,000 saved by simply doing a few painless substitutions. Now, if you took those annual savings and invested them along the way and got a decent 8% annual rate of return, that $13,000 could increase by a lot more. As in, to more than $42,000!. Enough to buy you enough to buy you a couple of cars over those 25 years!

All for making a few painless substitutions in terms of brands!

Financial Spring Cleaning: 5 Tips

By Squirrelers 7 Comments

The beginning of Spring is kind of a nice milestone for those of us living in cold-weather climates. While the weather can be cold even in late March and early April (as I write this, I see snow still on the ground here), we start to get some random nice days in too. It’s the beginning of the great thaw, and a signpost that warmer days are soon upon us.

This is also a time when many folks thing about opening the windows, and getting going on spring cleaning. While this is usually the case with the actual home, we can also take part in a financial spring cleaning as well! Much like the new year is a time of renewal and refocusing, we can look at the beginning of Spring as a time to “clean up” our finances, our at least do some dusting! 🙂

Here are 5 ways we can spring clean our finances:

Organize Tax Records

This is the time of year when we have either just filed our taxes, or will be doing so very early in the season. At least here in the U.S., anyway. Along those lines, it might be a good idea to take your new paperwork and documents, and add them to what you’ve already saved. Then, make sure that you have multiple year’s tax documents organized properly in case you need to go back to reference them.

Think this is overrated? Well, I got a surprise letter a few years back about capital gains from a prior tax return. It turned out that the brokerage that had originally sent me the form did not include the purchase price, so without it one could technically say that it was zero. Crazy, obviously, since who buys stocks or funds with no value. But technicalities matter, so I had to go back and get a reissued form to avoid paying a gargantuan penalty.

It all worked out, and it is an example of why need to keep tax records. Might as well keep them organized too. Oh, and on a separate note, this was also a good example of why we should consider having a professional do your taxes.

Check Your Credit Report

It’s a good idea to keep an eye on your credit report. One reason is to make sure that there aren’t any mistakes on there. It’s not at all uncommon for people to check credit reports and find out that there are problems that shouldn’t exist. While they may not be our fault, it is our fault for not being diligent about keeping tabs on this. Hopefully things are fine, and checking is a good quick step to make sure.

Rebalance Your Investments

Many folks like to practice asset allocation, and keep certain percentages of their portfolio in specific types of investments. The thing is, the value of each of these investments in relation to each other might change each business day. For example, let’s take a simple case of someone who keeps 50% of her portfolio in an S&P 500 index fund, and 50% in cash. Let’s forget whether or not that’s smart for a moment, and just think about the concept. In this case, if stocks go up tremendously since the beginning of the year, this person will at some point have much more than 50% in stocks.

This is an example of a situation where rebalancing may be needed. While spring cleaning finances, we can take some time to do that.

Revisit Your Insurance Coverage

Think about the insurance coverage you have. It could be homeowner’s, renter’s, car, personal item, or some other type of insurance. Take a look at the policy you have, and determine whether or not you have adequate coverage. Sometimes we go on autopilot with our insurance without thinking about the actual terms, and just think “oh, I have insurance so I’m covered.” But it might be a good idea to think about the terms of the coverage to make sure that it still fits our situation.

Also, it can be good to periodically shop for rates. As an example, I’ve written before about ways to save on auto insurance. It’s good to take the time to explore the different ways that we can save on not only auto, but the other types of insurance we might have as well. Again, why go on autopilot and pay more if there’s a chance we could pay a fair amount less? Savings can add up!

Check on Your Budget

Sometimes, we put together a budget but we get distracted with day-to-day life and don’t always monitor how our expenses are really looking. Or, we just might track expenses but don’t try to fit them within a budget. Frankly, I don’t think most people do either!

As a part of spring cleaning our finances, it can be good to take a look at our budget, line it up with how we are actually spending, and then see where the shortcomings may be. If we’re doing well with our spending, then congratulations are in order! If not, it’s time to make some changes. No better time than the present to get back on track!

My Questions for You

Do you take any of these actions on a periodic basis?

Are there any actions you like to take as a part of our finances during the Spring?

Do you have any others to add?

Sometimes it Pays to Ask

By Squirrelers 13 Comments

Are you apprehensive to ask for a discount, or to wrangle savings out of a business?

Honestly, it’s not in my nature to be a big time haggler. Generally speaking, I stick to that nature most of the time, or at least in terms of following social norms. That being said, I’ve also learned that at times we have to simply cast aside any apprehensions and just ask for a discount – or whatever it is we want.

One small example of this is a recent episode at a quick-casual restaurant I visited for the first time in a while. For two people, the total cost came out to around $19. Not exactly a fancy dinner, but it got the job done that evening. Some days you just don’t want to cook, right?

First Discount

Anyway, before paying, I remembered that I had a loyalty card there – so asked if they could credit my card. Or, just give me points, or whatever it is they did there. I really didn’t remember how it worked, but just wanted to get credit toward whatever it is was I could get.

So, the girl behind the counter said that I had to have my card present. At that point, I asked if she could look it up if I gave my phone number. She then proceeded to look it up, and guess what? I apparently had earned $5 off my purchase, based on past activity there!

Clearly, it paid to push past her resistance, based on me not having my loyalty card. Just following up her objection by asking if she could look it up saved me $5.

Second Discount

The next discount was even better. It then occurred to me that I had an old punch card in my wallet, from years ago. Actually, I had recently found it and put it in my wallet with the idea that I could try to use it the next time I was at this place. Luckily, I happened to remember this before paying.

I had six “stamps” on this paper card, which then entitled me to a free meal. Now, this had to be 5 years old, and was from before plastic loyalty cards became the standard. I mean, how often do you even see those old-fashioned paper punch/stamp cards these days?

Anyway, I then pulled out the old, beat-up card and said I’d like to use this. She looked at it as if it she was looking at something from outer space. Her jaw dropped, and she stammered something about “I don’t think we give these out”. I mentioned that I got this years ago, at this restaurant, but just forgot to use it. She seemed a bit flustered, and said that she wasn’t sure they could accept it.

I then asked her if she could find out from her manager, as I’ve been a customer for a while and simply hadn’t used the card. Plus, it didn’t have an expiration date anyway. So, she went to ask the manager. A minute later, she came back and said she could honor it and I’d get the free meal I asked for.

Hooray!

She then asked me if I wanted to sign up for their loyalty card, at which point I was the one with the puzzled look. Uh, remember the first discount I asked for? I tried to nicely mention that I already had a card, and that’s how I got the first discount. She then said “Oh, you already have one? OK.”

I can see that the first part of our conversation wasn’t so memorable 🙂

Bottom Line: Just by being a little bit persistent, I saved $14 on a $19 meal for two people by getting two discounts. It’s another example of how sometimes it pays it to ask.

My Questions for You

Have you ever been persistent in asking for a discount?

What are some examples where you’ve taken the extra effort to save money?

10 Ways to Save Money on Self-Storage

By Squirrelers 8 Comments

Moving is a part of life. It seems like these days, getting a self-storage unit is becoming more of a part of moving!

I learned this the hard way as I saw my parents move from their house of 34 years. Some of you may recall my mentioning this, particularly via a story about a cool letter from my grandfather that I never met, which was uncovered while packing for the move. Needless to say, there were a ton of things that needed to be sorted through. I did what I could to help out when I had the chance.

Anyway, after the whole process was complete, my father ended up deciding to rent a storage unit. It just made sense at the time, it was the almost inevitable outcome at that point of having so much accumulated stuff, and so little time to figure out what to do about it.

Now, I don’t recall the exact price, but I think is was something like $200 per month. There was a lot of stuff, and as I think about it, it might have even been more than one storage unit rented. The bottom line is, this is a lot of money that is being spent to store things. If you annualize that amount, it’s $2,400 per year. Ouch!

This, as well as some other conversation I’ve seen around the personal finance blogosphere regarding storage units, got me thinking of ways to save money on storage units. Along those lines, here are 10 ways to lower your expenses on storage units:

1) Don’t be emotionally attached to your material possessions. Is it surprising that this is at the top of the list? I put this first because I’ve seen it come into play not only in the moving example I noted above, but in the case of another person I know who kept items for years that ended up costing more to store than what they might be able to fetch in terms of replacement value. Remember, people and objects are different – the former we naturally become attached to, while the latter might be irrational in some cases. Think rationally in terms of your material possessions.

2) Compare storage cost with replacement value. If your items cost, let’s say $100 per month to store, you’re looking at $1,200 over the course of the year. If their replacement value is $1,500, then why spend $1,200 on a year of storage? Just do the math and it might become clear what makes sense and what doesn’t.

3) Purge items you don’t truly need or use. Now, I think that the purging of items should be a more frequent action that just once you’re about to move. Rather, make it a practice to regularly get rid of things you don’t need to hold on to. You can even get some money back by selling items, or help others in need by donating. The latter option might offer some good karma 🙂

4) Accurately assess your storage needs. The bigger your storage space, the more money you will be spending, right? Thus, it makes sense to take an accurate inventory of what you feel you have to send to storage, and gauge exacly what kind of storage unit you can get. The smallest one you can get, without damaging any items, just might be the one you should get.

5) Ask family to store items if they have space. Okay, I do like to be self-sufficient and I detest freeloading. That being said, you might be fortunate enough to have parents or another family member who could easily store some things for you. Maybe you can work a deal with them in return, or show appreciation in ways such as an occasional dinner out, tickets to a show, etc. Sometimes, family might be glad to help – particularly if they have the space anyway. Just be prepared to return the favor in some other way.

6) Compare prices. Not all storage facilities have the same prices. Some are more, some are less – even within the same general location. It can help to shop around a little bit, as monthly cost savings can add up.

7) Consider storage in low-cost areas. As long as your items will be safe, you might want to consider looking at storage in low-cost areas or out of the way places. Again, much like comparing prices within a specific locale, prices in different areas might be quite different was well.

8) Negotiate. As with many things, prices may not necessarily be fixed and unchangeable. It might be worth a shot trying to negotiate and come up with a better rate.

9) Look for coupons or discounts. You never know, you might be able to score a deal on storage units. Take a look around, particularly online, for such deals.

10) Don’t get a storage unit! Sure, it’s a broad, sweeping generalization, but I suspect that many people get a storage unit hoping that it will be for the short-term, but end up keeping it for quite a while due to inertia and/or time constraints. Then, the costs can really add up significantly over time. If you can manage your accumulation of things to match your expected available living space, you just might be able to avoid getting a storage unit and save a lot of money in the long run! Not that I’m against storage units, because they can really offer value to some people in different circumstances. But the best way to save might often be to not spend at all!

My Questions for You

What do you think of self-storage units?

Have you ever had one, or do you have one? If so, how has it worked out for you in terms of the cost/value tradeoff?

Have you used any of the tips above, and/or do you have any additional tips to share?

How to Save Money without Even Trying

By Squirrelers 5 Comments

When it comes to budgeting and saving money, sometimes it can be a little overwhelming, especially if you are just starting out and trying to get a hold of your finances. You read tips of wacky ways to save money or extreme frugalism and it can seem all too hard.

Set up automatic savings
This is the simplest way to start saving money. Set up a high interst saving account and start putting something in it every pay. You can set it up through your bank so it is a direct debit or ask your payroll person to deposit it from your pay, so you don’t even see the money hit your regular account.

VIP/Loyalty clubs
Anywhere you shop regularly, see if they have a loyalty club. If they do, you could accrue points for discounts, cash back other rewards. When you redeem these rewards, put the money you would have spent on it, straight into your savings account.

Use a money tin
As simple as this is, it works! Get a money tin and empty your change into it. If you have coins in your wallet or pocket, if something costs less than you expected, then put it in the tin. You can deposit the money in the tin either weekly, monthly or once it is full. It is money you don’t usually miss and it soon adds up.

Actually put savings away
Any time you save money on a purchase you were going to make, put the difference into savings. For example, if you budgeted $150 for groceries but only spent $130, then put that $20 into savings. The money you ‘save’ on regular expenses isn’t really saved unless you put it into a savings account. More often than not, people save in one area, only to spend their ‘savings’ somewhere else.

Round down
This is a simple way to save little bits of money here and there. Every time you check your bank account online, round it down. So if there is $112.73 sitting in your account round it down to $110.00 or even down to $100. You won’t miss those few dollars, but if you do this regularly, you can save hundreds of dollars a year.

Saving money doesn’t have to be hard or boring. It is just about changing a few habits and making sure you actually put the money into savings.

Kylie Ofiu is the author of 365 Ways To Make Money, a finance blogger, freelance writer and public speaker. She is also the mum of 2 daughters. She shares real ways to make and save money on her blog.

Save Money with these 15 Cheap and Healthy Foods

By Squirrelers 17 Comments

If you were to look at your expenses for a typical month, food is probably one category that wouldn’t exactly be miniscule in terms of the amount spent. This makes sense, as we all need food, and we all like food.

If you look at the personal finance hierarchy of needs, which I put together inspired by Maslow’s work, you can see food as a being a base level need. Along with our needs for shelter and medical care, we most certainly need food in order to get by in life. So, it’s tough to avoid spending money on food altogether.

With that in mind, I thought it would nice to summarize a list of food choices that would be relatively inexpensive to purchase, and would help lower food expenses. This would be in lieu of other more radical ideas, such as those of a former colleague who squirreled away money by getting free food at work 🙂

Anyway, here are 15 low-cost healthy food choices to help stretch your budget:

1. Water. Is water considered food? Well, whatever classification it deserves, I’ll put it at the top of this list. Drinking water instead of expensive drinks can really help you save a lot over the long term. Keep in mind that I’m talking about tap water here, not bottled water. Also, drinking water can help you avoid damaging your teeth with sugary and/or acidic beverages. As we know, it can be nice to save money on dental care.

2. Oatmeal. I’ve talked about this before, in terms of being a good way to enjoy a frugal breakfast. A serving of oatmeal made at home can cost very little maybe $0.10. A dime for a bowl isn’t bad, right? Plus, oatmeal is reported to have a number of potential health benefits.

3. Eggs. Now, personally I prefer egg whites, as I don’t care for the extra cholesterol with the yolk. Regardless, eggs provide protein and don’t cost to prepare in terms of time or money.

4. Bananas. Nice as an “on the go” snack, or as a part of breakfast, bananas are a great source of potassium and an easy way to get some fruit in your diet

5. Spinach. Now, it may be more expensive if you go the organic route, though whether or not it is important to buy organic is up to each of us. If not, spinach can be an especially low cost source of vitamins C and K, as well as lutein, in the form of a green, leafy vegaeable.

6. Apples. An apple a day, right? Well, that’s no guarantee to keep the doctor away, But apples are a good source of nutrition, and like bananas are easy to take on the go while costing relatively little.

7. Broccoli. A cruciferous vegetable, broccoli is loaded with nutrition what keeping us full on very little calories. Plus, it’s a nice source of fiber.

8. Nuts. Sure, they can be calorically dense – so be careful just how many you eat. However, nuts often have what are described as “good” fats, along with many vitamins and minerals. They can also be a good source of protein. They aren’t always cheap, but some can be very inexpensive – espcially when bought in larger quantities.

9. Beans. These are often an excellent source of both fiber and protein, along with other nutritional benefits. Bought in larger quantities, beans can be quite inexpensive. Plus there is a good variety of choices, including among others: black, navy, lima, pinto, garbanzo, mung, red, and others.

10. Brown Rice. A low-cost staple that is filling, and offers a better nutritional profile than traditional white rice.

11. Greek Yogurt. In particular, I like the non-fat variety for obvious reasons: being lower in fat. But Greek yogurt is higher in protein than traditional yogurt, and creamy as well. If you get the plain non-flavored kind, you’ll also do without the added sugars!

12. Potatoes. Sure, they can be high in carbs. But they also have vitamin C, potassium, and iron. Plus, they can be really inexpensive. At a local store recently, I saw a bag of potatoes that looked like it might have had 15 or so, and it was on sale for $1.99. That’s a lot of food for a low price!

13. Pumpkin. Not your typical choice, right? Well, canned pumpkin can last a LONG time, and when used in recipes, can provide a great source of vitamin A, as well as a good source of fiber and iron.

14. Quinoa. Again, not a standard choice! However, this grain has been getting popular in recent years for good reason. It’s filling while being a really good source of protein compared to alternatives. Buying in bulk can save some money.

15. Popcorn. What? Popcorn? Well, we aren’t talking about the movie theatre variety here. Rather, if you air pop it at home, it can provide a very low cost snack that will leave you feeling little guilt but a fair amount of fiber. Sure seems like a healthier, cheaper snack than many alternatives!

My Questions for You

Aside from water, which we all consume, which of these foods do you like to incorporate as a part of a healthy, low-cost diet?

Do you have any other suggestions to share about other food that is both healthy and low-cost?

Money Tips for Young People Starting Out

By Squirrelers 6 Comments

Learning from experience is smart. We should all learn from mistakes as well as simply pick up knowledge and wisdom as we get older. That said, if we can get good advice early on – AND follow it – we should be ahead of the game.

Along those lines, I think it’s good to be able to offer financial advice to people younger, even if old enough that they’re just out of college and just starting out. Some of you might be at that stage now, or may have family at that point in life. I came across an article on US News that offers some good advice for those starting out, and below I’ll share the tips as well as my own opinion on each.

Save one-third of your income. You know, at first glance this seems really hard to do for most people just starting out. I wouldn’t have been able to do it. However, I also made choices that made such an accomplishment unlikely – the primary one being graduating college and then moving to another city rather than going back to my home area. Living at home after college, if that’s an option, can truly help someone save one third of income. In many cultures and/or families, it’s no big deal and very normal to be living with Mom and Dad at that age. Why does it have to be weird and seem like freeloading? I say that despite not doing that myself.
Don’t be stingy with career-related investments. I tend to agree with this. There are people that tend to think that once a person graduates from college, the need to invest in continual learning is over. Well, that’s not true, as we need to keep learning to make money. This could mean spending money to invest in yourself to get an edge in your career, or give you time to do so.
Cultivate ambitious dreams. Again, I agree. With life ahead of you, there are so many possibilities. Why not try to shoot for the stars? If you land a bit lower, it’s still better than where you’ll end up if you aim low. It’s doesn’t get easier when you get older, as you have less time and more responsibilities.
Pay off all but the cheapest student loans early. Makes sense to me. After reading about senior citizens with student loans, I think it’s a great idea to eradicate debt and work on becoming debt-free. There’s freedom involved in that situation!
Don’t wait to start investing until you have extra money. The earlier you start, the better off you’ll be in the long run. The power of compounding on money is staggering, check it out!
Give back on your own terms. I agree on both parts of that: giving, and on your own terms. I of course support helping others, as I’ve gone over here countless times. That said, nobody should force you into it and often times we might want to be careful to make sure that an organization we give to will actually use our money in a way we are comfortable with.

In addition to those tips provided, I have four more than came to mind, to make a combined list of 10 tips. Here are my own additional four tips:

Don’t give in to financial peer pressure. People of all ages can be tempted to keep up with the Joneses. I would suggest not worrying about competing with others in terms of how much money they seem to have, where they live, and so on. Be aware of what’s possible, and be inspired. But don’t give in to pressure to keep up appearances, and don’t get sidetracked with unnecessary social competition
Behave responsibly and be nice to people. Besides being the right thing to do, it’s also smart not to be obnoxious. With people getting googled by employers, and social media being used as a platform for many things, it’s best to think about ramifications if the world knew about what transgressions you commit. Because, that’s potentially but a few clicks away.
Don’t waste time on Mr. or Miss Wrong. Easier said than done, I realize 🙂 Of course, many of us have seen people spend inordinate time when young dating or chasing the wrong person. I heard a story of a friend of friend who turned down a massive job offer in order to stay with someone who was dating. Who, of course, kicked him to the curb within 2 weeks. Ouch! Big money and career opportunity gone in a flash.
Build your network. Don’t burn bridges, build them instead. The world is getting smaller, so it’s more important than ever to be a giver and think proactively with your network.

10 Ways to Lower Your Water Bill

By Squirrelers 25 Comments

Turning the faucet off can lower your water bill!

Raise your hand if you like paying utility bills!

If we were in a room and I asked the question to the group, nobody would be raising his or her hand. Paying utility bills is just a necessary maintenance activity that we deal with as a part of life.

Of course, beyond the routine of paying the bills, there’s the reality that they can eat up a decent part of our budget. Thus, it’s a good idea to try to save on utility costs. One example of such an expense would be water bills. We can’t live without water, it’s a necessity, but we have to pay for it. Thankfully we don’t have to be pay for air!

Anyway, with respect to water bills, there are ways that we can reduce our monthly payment. This came to mind when listening to my father share with me how high his water bills have been in recent months. Here are 10 ways to lower your water bill and reduce expenses:

Use a low flow shower head. This by itself can reduce water usage and ultimately water costs, possibly over $100 annually for a family.
Consolidate laundry. By this, I mean avoiding doing many separate loads of laundry. Rather, where possible, try to consolidate to do fewer loads.
Take a shorter shower. Yes, you can get just as clean if you cut a minute or two off your shower time. Be mindful of time!
Water your lawn less often. Of course, if you don’t have a lawn this won’t apply. But if you do, water it a little less often. If your grass isn’t 100% green and the best looking showpiece in the neighborhood, who cares?
Run the dishwasher when full. Now, by this I don’t mean overflowing so that everything doesn’t get fully clean. Rather, I mean make sure to run it when more than just half full. The less you run the dishes, the more you save on water.
Install aerators. Putting these on faucets can reduce water flow and save a little bit of money.
Repair leaky faucets. This is one of those nagging things on a to-do list that we get around to when we can , but over time this can result in money dripping out of your account!
Properly insulate pipes. If you can get your hot water faster, that means water wasted while waiting.
Wash your car less often. If you take your car to a car wash, this applies too. After all, the more you wash your car there, the more you spend! If you rinse off your car in your driveway, you’re using water there too – lots of it, potentially. Just rinse it off a little bit less, and save a little bit of money.
Teach kids to turn off faucets. This has probably spanned generations, as kids sometimes just keep the water running more than they should, and at any random occasion. For example, turning on the water to brush teeth, then walking away before coming back a few minutes later. We were all kids once, so we know that logic isn’t always there. Teaching them good habits will save them some money in the future and you in the present.

The best thing about saving money on water is that these methods don’t really inconvenience us, as they’re a part of day to day life anyway. It’s just a matter of making a few adjustments.

Also, aside from money, let’s not lose sight of the other more important benefit of water conservation: helping the Earth.

My Questions for You:

Do you use any of these approaches to save money on water?

Can you think of any more to add to the list? I’m sure there are many more approaches that people take which can be included.