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(From the Financial Literacy Blog) – Budgeting is the foundation for solid, well-rounded financial well-being. One of the most important things to consider when outlining your budget is your cost of living. In other words, how much money do you need to pay for the essentials like food, transportation, housing, utilities, and other basic needs?
Utilities in particular can be tricky and stressful to budget for, as some are more susceptible to fluctuating in cost each month. While some utilities, such as cable and phone, may have set monthly fees, others like water, energy, and fuel often vary depending on how much you utilize them. On top of that, many companies providing these goods and services have been increasing costs to keep up with the economy.
It is crucial to ensure you stay within your financial means when paying for these essentials. One of the biggest ways to do this, especially during winter in Maine, is to reduce energy usage to avoid higher bills that could tighten your budget. In fact, Maine energy suppliers like Central Maine Power (CMP) and Versant have adjusted both their cost of usage and their fixed monthly service charges within the last year, leading to an increase in cost for many customers.
The following ten ways to decrease energy consumption can help you maintain a manageable budget and reach your financial goals:
#1: Turn Off Lights and Devices When Not in Use
It sounds simple, but keeping lights turned off in rooms you are not currently in or using is a big way to save money on electricity. It can become a habit to leave a light on, either to create a comfortable environment or simply because you plan to be back in that room soon, but turning lights and other electronics off when you are done (even temporarily) in a room is a great habit to start so you can save money.
Similarly, it’s also good practice to turn off and unplug any devices when they are not in use. Even if it’s turned off, the item still draws a small amount of electricity, known as “standby power” or “phantom power,” when plugged in. To limit this, unplug items when you don’t need to power them at all—including lamps, computers, kitchen appliances, chargers, and other electronics. Using power strips can also help, as you can turn the switch off when not in use to cut power to anything you have plugged in to it.
#2: Adjust Your Thermostat
Consider checking and adjusting the settings on the thermostat(s) in your home. Turning the temperature down costs less money, as that will help your home utilize less energy and fuel. This cuts your energy bill down and provides more time between paying for fuel refills. If your thermostat has the functionality, take one thing off of your daily to-do list by automating the process with temperature settings on your thermostat to switch between higher and lower temperatures based on the hours you choose. For example, you may want to program it to stay lower during the hours you are in the office, so you aren’t paying to comfortably heat an empty space, and to adjust to a warmer temperature for the evening and nighttime when you are home. You’ll be warm when at home and not using energy and fuel more than necessary.
#3: Prepare Your Home for Winter
Winterizing your home for cold temperatures and snowy, icy weather is a great way to ensure the heat you pay to fill your home with stays inside your home, leading to less fuel and energy usage to keep up with the cold. By preparing properly with insulation around pipes, windows, and other areas exposed to the elements; applying weather-stripping and/or caulking to doors and windows; having your heating system cleaned and maintained; disconnecting hoses turning off outdoor water supply; and/or completing anything else your home may need to eliminate drafts and “heat leaks,” you avoid energy-sucking issues before they even begin. Taking these steps may have some costs up-front, but it’s likely nothing compared to what you save in energy expenses.
#4: Only Run Appliances When Necessary
If you are more selective about how often you use the appliances in your home, such as the oven, dishwasher, washing machine, and dryer, the savings add up. It’s financially beneficial to only run these appliances when necessary. For example, it costs more money to run two dishwasher loads that are semi or nearly full than it would to wait for one full load of dirty dishes before adding soap and starting the machine. By only using these machines, which require a decent energy supply to function, when it’s essential, you cut back on how much energy you need to pay for to complete these processes.
Another way to save money is to avoid the oven if you can help it. Find meals to cook that don’t require your oven, even if only for a portion of the meals you cook. If you do use the oven, leave the door cracked during winter when it’s turned off and cooling to encourage the heat into your home—but don’t open the door during cooking if you can help it as this lets heat out and uses more energy to get back to temperature for rest of the cooking process. You can also try only using your washer with cold water. This removes the step of using electricity to heat water for use in the machine, and it can add up over time to help lower the cost of use. Additionally, consider utilizing a clothesline or drying rack in place of running your dryer to eliminate a step and decrease your cost.
#5: Change Your Lightbulbs
LED lightbulbs are the most energy-efficient option, allowing you to save money on energy costs. If you haven’t already made the switch, it’s recommended to do so relatively soon to save money. It’s also important to note that Maine legislation is phasing out the use of fluorescent lightbulbs, prohibiting the sale or distribution of mercury-added bulbs beginning in January of 2026. Whether you switch now or in January, Mainers will need keep this in mind and dispose of any fluorescent bulbs they currently have properly to avoid health consequences related to mercury.
#6: Install Dimmer Switches
Dimmer switches reduce the intensity of the light, leading to less power consumption and a more relaxed, cozy environment—a win-win!
#7: Check Your Refrigerator Settings
While you definitely want your fridge and freezer to be cold enough to safely store your food in, keeping it set too low can actually be a big burden to your wallet. Temperatures above 40°F allow bacteria to grow quicker, so it’s recommended to keep your refrigerator between 35°F and 38°F and set your freezer below 0°F. Anything colder causes excess strain and energy supply.
It’s also a good idea to ensure the coils on the refrigerator stay clean, as they easily can collect lint, dust, and other dirt that accumulates in your home. When the coils are full of dirt and debris, the machine works about 35% harder and faces a shorter lifespan. Checking and cleaning the coils every six months to one year is ideal.
#8: Utilize Natural Light
During the daylight hours, open your curtains and blinds to let in the natural sunlight. This reduces the reliance you have on lamps and overhead lighting, which definitely uses less energy.
#9: Change Filters Regularly
It is important to change filters on appliances like your furnace and HVAC systems, as a build-up of dust and debris not only bogs down the item’s ability to properly function, but it also leads to decreased efficiency and shorter lifespans. Not caring for or maintaining these things well could ultimately require you to replace them, which is not a small expense.
#10: Utilize Other Energy Sources
If you are able to, consider renewable energy options to power your home. Generating your own power is a great way to reduce your energy bill. In addition to being a cleaner energy choice with fewer emissions than burning fossil fuels, things like solar, wind, and hydroelectric power are very abundant and reliable—especially solar, which is the most abundant form of renewable energy. As this kind of energy source becomes more popular, the technology is decreasing in cost, as well.
In Conclusion
Small steps to conserve energy leads to big savings, helping you navigate your personal energy usage while staying within your budget. When you have more awareness around the ways you consume utilities like energy, you empower your own financial future.
As always, reach out to your local credit union with any questions or for any assistance regarding budgeting and financial planning.