#PFT 13 - Personal Finance Tip: How to Save Money on Your Electric Bill and Improve the Budget

Updated: Jun 11

This week we’re talking about the electric bill. If you’re in a cold climate the cost tends to escalate during the winter and in the summer, all of us seem to pay more.


The average electric bill in the United States is $117.65 per month, according to recent data from the U.S. Energy Information Administration (EIA); Depending on where you live and how big of a house that you have, that bill can be much higher.


So what if you could do some things to save a few bucks; perhaps reduce that part of your budget by 20% or so? The good thing is that takes very little effort to accomplish this.

1) Clean or replace that furnace filter Change your air filter especially during the heating season. Check the filter every few months; for exact guidelines check the manufacturer’s specifications.

This is simple logic: if the furnace breathes easier, then it will operate better.


2) Check for air flow around windows and doors

If cold air is creeping in, then the furnace works harder to heat the home and the bills rise. If hot air leaks in, then it puts more pressure on the air conditioner to cool the home.


3) Use your ceiling fans in Reverse

Physically, hot air rises. Hence, reversing your ceiling fans blades will push the air downward and circulate more warner air into the room. 4) Turn your thermostat down

While you're away or sleeping, even lowering the temperature by a few degrees may save you 10% or more on your bill. If you have a smart thermostat, you can set it to change temperature ranges at certain times and they also have learning capabilities to perform this task automatically.


This personal finance tip alone could save you $17 per month.


5) Do not cover up or block vents in rooms that you do not use

Most of us have been or lived somewhere where the upstairs is too warm and the downstairs is too cool. In addition, the basement is cold that even the pets are complaining. However, there is no need to dip into the rainy day fund for a repair to the HVAC system.


Commonly people choose to cut off the ventalation's air flow to save money: however, this is not the right course of action.


In fact, many heating and cooling systems are designed for your home’s layout. Hence, when you close off the vents, the system becomes oversized for the domicile. The result is that systems will turn on and off frequently and basically overwork itself which can lead to high utility bills.


6) Consider getting an energy audit

Many utility companies will do this for little-to-no cost. Essentially, the audit identifies where you can improve your energy efficiency.


To sum things up, taking the time to put these items into effect is another way to cut down on your budget, be a little more comfortable and when you use less energy it is better for the environment.