I am not, dear reader, a financial expert. I am a social worker by trade, so I certainly am not one to come for advice on lucrative careers. Despite my lauded profession for the good it does society, the electric company has yet to accept the goodwill that I have generated as a form of payment. Nor does the grocery store accept client hugs or testimonials – privacy laws notwithstanding.
However, as this is the Budget Bucket List, I do feel that it is high time that I address the elephant in the room of budgeting so that we can have the funds to check off our lists.
The most basic budget is essentially three steps. Track what’s going in, track what’s going out, and set your spending limits and savings goals. Easy peasy. What’s in is probably pretty easy, it’s your job. It’s adorable that all these financial websites talk about other sources of income as if we have multiple revenues, but we’re budget bucket listers. We either have one job or several part-time jobs just to get by. This isn’t 1960s where people could actually build wealth, this is the 2020’s where nearly 60% of people don’t make enough money to be considered middle class anymore.
The what’s going out part is a bit more tricky and this is probably where I have the most difficulty with financial websites because they will often put things under two categories “fixed and variable” and then act like the variables are in your control. Yes, gas is a variable expense but one cannot control the price of gas and at a certain point, the cost of gas is just what it costs me to go to work to earn the money I need to live. The fixed expenses are your housing, car, insurances, etc. Some utilities will be under this, but not all your utilities. The variable expenses are things like food, gas, entertainment and shopping.
So, how do I cut the costs of my variable expenses, even though at a certain point, you have to spend the money in order to exist and you don’t control the costs of things, especially in this economy. They may not be the most savvy tips in the world and they certainly won’t tell you how to build a stock portfolio, but in the next four posts I will share the things I do to keep the cost of existing down so I can afford the cost of actually living.
Utilities are one of those inescapable expenses—right up there with taxes and “unexpected” car repairs. Whether it’s keeping warm in winter or cool in the middle of a July heatwave, there’s always a baseline cost to existing indoors. While I can’t always control my energy rates, I can control how much energy I use. Here’s how I keep my bills manageable without turning my home into a tundra or a sweat lodge.
How I Lower My Bills Without Living in the Dark
My home runs on electric heating and while we have the duct work to have central a/c, we have to rely on window units, so I’ve learned to get creative. In winter, I embrace layers, throw blankets, and hot tea. I also make sure to hang thick curtains. In summer, blackout curtains are my best friends—especially since my sun-blasted front windows face south. The bonus? Those same curtains help trap heat during colder months. Windows are, unfortunately a huge source for either gaining heat in the summer or losing heat in the winter.
Another thing, I really recommend for both winter and summer is to weather-proof your home as much as possible. You would be shocked at how much trouble a small draft at your front door can cause. A few years ago, I was able to upgrade my windows and doors which really helped reduce how much I was paying for heating and cooling because it meant I was able to keep the heat out in the summer and the cold out in the winter. The upgrades honestly paid for themselves in terms of energy savings over the course of a year.
Over time, we’ve also made several other changes that have really helped. As older appliances have needed replaced we’ve opted for energy-efficient ones. We also swapped out light bulbs. We turn off and unplug devices when not in use. We ditched the dryer in favor of hanging our clothes. We’re currently making the switch to more natural fabrics meaning we will need to wash our clothes less. All of this to be more sustainable, environmentally friendly and budget friendly.
In my state, we can shop around for electric providers. I always go for a fixed-rate plan at the lowest cost available. This also means that I don’t have to worry about my energy use during the day as variable rates can be effected by “peak times”. If you happen to have a variable rate, make sure you’re looking to see when it’s cheapest to run your appliances and adjust your usage accordingly. My utility company averages my bills over 12 months, which helps with budgeting, even if the number still feels annoyingly high some months. Comfort has its limits, but so does frugality.
Extra Ways to Save on Utilities
- Add heavy rugs and draft stoppers to block chilly breezes
- Set your water heater to 120°F (no one likes scalding showers anyway)
- Run dishwashers and laundry at night during off-peak hours (if you have a variable rate)
- Wash clothes in cold water (your clothes will thank you)
- Use a programmable thermostat.
The last will (hopefully) be my next home upgrade as currently, I have a very old thermostat system where I just turn a dial to turn the heat up or down. This means I am constantly having to turn the heat up and then turn the heat down depending on the weather and when I will be home. I can’t turn it off completely when I’m gone because I have pets, but I do try to turn it off for at least several hours every day during the winter. I am sure that just like my windows this upgrade will pay for itself in energy savings. Don’t be afraid of upfront costs if you know it will save you money over time.
Budget Bliss: Bucket List 