Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts

Wednesday, February 19, 2014

Lower Your Electric Bills


Electric bills are getting more expensive every year. While switching electric suppliers might help people save money this is not always an option, especially in smaller communities. There are things you can do around the house to keep your electric bill low. 

Closing the curtains and lowering blinds on the sunny side of the house will help keep the house cooler on hot days. In the winter, it will also prevent heat from escaping out of the windows. If you like looking out your windows during the daytime, window film can filter the sun in the summer and dual pane windows will retard heat from escaping in the winter. You can also consider getting outdoor awnings and painting the house a light color to reflect the heat.

Air conditioners are the biggest user of electricity, along with heaters in the winter. A heating and cooling system accounts for more than half of your electric bill. You can increase your heating and cooling system's efficiency by having annual cleanings, checkups, and changing out the filter every month.

It is also important to keep the greenery trimmed around the air conditioner to allow air to flow efficiently. The less your heating and cooling system has to work, the less electricity it will use.

The US Department of Energy recommends all window air conditioners be placed toward the center of the room on the shady side of the house. They also need to be the right size for the room. If the unit is too small, they will not cool the room efficiently causing them to run more often. If a unit is too big, it will also have reduced efficiency causing higher electric bills, uncomfortable temperature fluctuations, and excessive wear and tear.

Raising or lowering the temperature in your home can save as much as $100 a year. When at work or asleep, turn it up so the air conditioner does not click on as often and conversely turn it down in the winter. A programmable house thermostat is a great option to control the temperature. If your house utilizes a heat pump, it is best to manually set the system to be electrically efficient.

Lastly, replace light bulbs in the house with CFL bulbs, or even LED lights if they come in the correct size for the socket. These bulbs are expensive at first, but worth the investment. A single standard incandescent light bulb can cost the same amount as it costs to run six to ten CFL bulbs, which last ten times longer.

Thursday, February 6, 2014

Reduce or Eliminate Your Debt

Reduce or Eliminate Your Debt

Debt in its simplest form means you have more to pay than you have money to pay it. Let's assume that you borrowed $150 from your best friend. You bought a lawn mower, gas can and gas to start work. Then you spent the day cutting grass and made $100. You bought more gas, some food and drink and paid your friend $50. At the end of the day, you are $100 in debt to your friend. 

Most folks purchase large ticket items like houses, cars or boats using a lending institution to borrow the funds. And then, pay the loan back over time. If your paycheck stopped coming tomorrow would you be in debt? Could you sell your boat, car or house for at least what you paid for it? Rarely will a car or boat be sold for more than you paid for it. In a down economy, even a house may not sell for what you owe on it. 

Getting into debt can happen suddenly; something unexpected happens. Or it can happen by choice; perhaps a choice made a year or so ago. But you can protect yourself by following this guideline. 

There are 3 categories of spending: Needs, Wants, and Desires. 

When you consider your spending (or borrowing) ask yourself the question: "Do I really need this?" Ask it again... Do I Really NEED this? What you really NEED is air to breath, water to drink, basic clothing to stay covered, basic housing, and basic transportation (and that doesn't necessarily translate to a car). 

Let's assume you NEED reliable transportation to get to work. No bus service there and to walk or ride a bike would be simply ridiculous considering its 30 miles away. 

Do you NEED a pre-owned VW Beetle, a mid-range vehicle, or a brand new BMW? You may NEED at least a VW Beetle to get to work. You would like or "WANT" a mid-range vehicle for more comfort. But your "DESIRE" may be a high-end BMW, Audi or Jag. 

Quite simply, if you make your decisions based on NEED it will help you reduce or eliminate your debt. In other words, you will quit overspending on wants and desires and be able to use your extra income to pay off your debt. 

There is a whole lot more to reducing or eliminating debt, but if you follow this simple rule, you will be on your way to becoming debt free.