Electricity on a budget!  Because every bit of money saved, is money that can be used to build and strengthen our bottom line this article focuses on some useful tips and advice that can significantly reduce your monthly electric bill. 

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Flat Rate verse Actual Consumption

Many electric companies offer a program that allows consumers to pay a flat rate each month.  This rate is based on your average consumption the year before.  Although this is helpful in maintaining a budget, it is also hurtful because it blinds you to the actual amount of electricity you use.  In other words, if your monthly rate is $200, you become accustomed to paying that rate and focus little energy on cutting this expense.  If however, you pay the actual amount each month, you are more in tune to your actual electric usage and will be more likely to manage what you use.  Unless you are diligent to follow cost cutting measures willingly, paying the actual amount over the flat rate may be a better option because it “forces” you to review your electric usage each month.

Saving Money on Your Electric Bill

Where to begin?  A good way to manage electric expenses is to set the goal to reduce your electric bill from the pervious month, and when this is not accomplished, review what happened.  This will help create new habits that will become second nature and save money.

CFL Light Bulbs

The main waste of electricity is misusing it.  The easiest way to manage your electricity usage is to make sure lights are turned off when not in use.  While on the topic of lights, switching your light bulbs to Compact Fluorescent Light bulbs, commonly known as CFLs, will save a lot of money used on electric costs.  Not only are these bulbs better for the environment, on average they use 75% less energy then traditional light bulbs.  Ironically too, CFLs work best when left on for at least 15 minutes.  For every standard light bulb that you change with a CFL, you will save approximately $30 over the lifetime of that bulb.  Perhaps this does not sound like much, but when you take into account CFLs have a longer lifespan, use less energy, and as an added bonus are better for the environment, this savings adds up fast.  To put this into another perspective, count the number of light sockets in your home and multiply that by $30 and this really sounds like a no-brainer idea for doing it on a budget (shameless plug, I know!).  

Electronics

Another area where electricity is wasted in most homes is through electronics and appliances.  Even when off, DVD players, TVs, Cable or Satellite boxes, computers and other electronic devices consume small amounts of energy.  Even when off, electronics have a standby mode built in that continues to consume energy even after it is turned off.

To prevent this and to save money on electricity, all devices should be cut from their power source when not in use.  Of course, new habits are easier adapted when they are easy to use.  Rather then manually turning off and unplugging each device individually, plug them into a power strip that can turn off multiple devices at once.  For example, you can plug your DVD player, game console, TV, and Cable / Satellite box into a single power strip.  This provides a single point by which all devices can be turned off and on easily.   On PCs, in addition to turning them off, set your power saving options to conserve electricity when you are away from it for a short time period (Select the Energy Star option under the power options, found selecting the control panel). 

Appliances

The easiest way to cut down electric and natural gas consumption is to let the appliances operate efficiently.  Refrigerators and freezers should be closed as quickly as possible to prevent escaping cold air.  Also keeping each as full as possible saves electricity.  It takes less energy to cool or freeze each when they are full and more energy to keep each cool when they are empty.

For ovens, the same rule applies; let the appliance operate efficiently.  Keep the oven door closed.  To check on cooking progress, set a timer or use the internal light.  When you open the oven door, the internal temperature drops 40 degrees or more within minutes.  The oven then has to work harder and consume more energy to bring it back to the correct temperature.  More energy use results in larger expenses.

When doing laundry, washing with cold water is gentler on the clothing and saves money by not requiring water to be heated.  Another helpful tip to save electricity is to do full washer loads of laundry (but not overstuffed). 

For dishwashers with numerous wash and dry cycles, stick to the basics.  A standard normal wash cycle will clean dishes just as well as the super soaker power scrub jet option, but will save money and require time.

As you replace your appliances, chose those that are energy efficient and have the Energy Star seal on them.   This label assures the appliance you are purchasing uses at least 15% less energy then a standard non-compliant one.  To sweeten the deal, at the time of this writing, there are numerous incentives, rebates and incentive programs available for switching from standard to energy efficient appliances.  These are available through local and/or federal government programs and utility companies.