Easy tips to Earn Money - Reduce household Expenses
Small Changes - Big savings
With the economy in a downswing, saving every penny means a lot to normal folk like us. A penny saved is a penny earned. But its difficult to save when you have been used to a lavish lifestyle. A lifestyle where you didnt have to worry about the next meal, or loan payments. Hey, times change and so do we. This hub just brings out some small changes that can be undertaken to reduce the basic monthly expenditure so that it puts some extra money in our hands and in the bank for a rainy day.
I shall bring out some simple reasons why we need to reduce our consumption as far as electricity is concerned and reduce some default household expenses.
- How to reduce electricity bills?
- How to reduce home bills ?.
How do we save Electricity? Its quite simple really and doesn’t take much of an effort. But before that, I shall give you an insight on how your bills are calculated. Lets take a small example. Consider a light bulb of 100 watts rating. This means, your bulb shall consume 100 watts of electricity when switched on. Your electricity bill is calculated in Kilowatt/hour. 1000 watts make up a kilowatt. So if an appliance has a rating of 1 Kw and if it is kept on for an hour, your meter will consume 1 Kw/hr and therefore show a reading of approximately 1 unit. So therefore if you have 10 bulbs of 100 watts switched on at the same time, a total of 100x10=1000 watts would get consumed every second and if kept on for one hour, it would consume approximately 1 unit of electricity and so on. This is then multiplied with the cost per unit i.e. 15 cents x 1 = 15 cents. Therefore, it would cost you approx 15 cents per hour to run a 100 watt lamp.
So now that you know how your electricity consumption is calculated, all you need to do is to make a list of all electrical appliances and lights and you shall know how much electricity it shall consume and what your bill shall be at the end of the month. But how can this help you to save electricity and how much? Well, first of all, remember the following:-
- Never keep lights on in a room when there is no one in it!!!! Even if you leave the room for 30 secs, SWITCH OFF THE LIGHTS.
- Replace all incandescent lights with CFL’s (Compact Fluorescent Lamps ). Replace your 30 liter capacity water heater with an Instant Water heater. It saves a lot of electricity, costs much less and is less dangerous (not to mention hot water on demand).
- Do not leave your electronics on standaby.
- Keep the AC room temperature setting to a comfortable level like 26-28 deg c. AC filters should be cleaned regularly.
- Use energy efficient electronics with atleast 4 star ratings. Upfront, they cost a little more, but save money over their life cycle.
- Use timers to start/stop home lights when you are away to save electricity and ensure security.
- Check earth wiring in your house. The new meters monitor even the leakage current to ensure that the users pay for bad electrical circuits.
These are some of the things that you can do to reduce your electricity consumption and save upto 35-40 % on your electricity bills. The same money, invested in a good mutual fund shall give great returns. Just need a little discipline. REMEMBER – ELECTRICITY SAVED IS ELECTRICITY GENERATED AND MONEY SAVED IS MONEY EARNED.
Reducing Household Expenses
We have all got used to takeways, ready to eat meals, processed foods, frequent change of our household items like pots, pans etc...why is that?? Well, its a concerted effort by companies to encourage you to waste more. If consumption is more, then sales shall increase, and if that increases, profits go up. So the bottomline is that we have all been told that we have no time, cooking is cumbersome and why waste time, everything is available. Well, this aspect really reduces your disposable income and you feel that its essential. Here are some tips (they work as I have personally adopted them and saved quite a bit in the bargain) to save on household expenses:-
1. Reduce consumption of processed foods like chips, wafers, biscuits, ready to eat meals etc. Cook and you shall save atleast $100-200 a month. See this article "Food Industry- The culture of waste" to see how the processed food industry is actually contributing to a hungry planet .
2. Dont buy multiple refrigerators to stock items and cooked food. Not only is it not health but also consumes a lot of electricity. There is no subsitute for fresh food.
3. Drink coffee at home and not starbucks or Cafe coffee day. Its not only cheaper, but also healthier..
4. Never, Never buy consumer goods and clothes on credit. We always tend to spend more when we buy on credit. Lack cash always curbs the buying spirit.
5. Dont give expensive gifts just to keep up. Gift what you can afford. Either way, unless you gift jewellery or cash, you gift shall be thrown in the trash at some point in time. so basically GIFT WHAT YOU CAN AFFORD.
6. Remember, use a credit card only if you have to money in the bank to pay for it. That way you shall not only get interest on your money, you shall not pay any interest on your credit card bill also. It does wonders for your credit history too.
7. Switch of appliances and lights whenever you can. No point in paying for standby consumption.
8. Dont change your wardrobe every year. Use them till you have extracted the maximum.
9.Generate fertilisers from your kitchen waste (you can do that even in a pot). Save fertiliserr costs for your plants .
10. Dont, I repeat, dont waste food. Make as much as you can eat. Never ever throw food from a plate. A lot of effort went it to produce it and you spent hard cash to buy it.
11. Eat out only once or twice a month. You shall suddenly have a purse full of money.
12. Write down each expenditure (however small), and anayle your spending pattern to see if you can improve it.
13. Never ever make impulsive purchases. If you feel like buying your 10th pair of shoes, go home and see if the feeling is still therre. If it is, dont go to the store again.
14. Never go to the mall to kill time or if you are bored. Read a book, go to a park...but dont go to a mall.
15. Decide on how much you want to save every month and then decide on your other expenses. Dont spend because you have too.
All these tips may seem like commonsense, and they are. So buckle up and button down if ou want your finances to improve. Frugal living and smart living is the only way ahead.