Cutting Energy Benefits the Wallet

July, 2007
by Kelly C. Ruggles

As gas and home energy costs continue to rise this summer, curbing them becomes increasingly important to your financial health.

Recently, I was buying gas at one of those rare stations that does not have self-serve pumps. As the attendant was filling my tank, I noticed several people just getting $5 or $10 worth of gas. "This is the fourth time this woman has been here this week," said the attendant, after she handed him a $10 bill. The attendant has worked there for more than 10 years and has noticed a change over the last year. "You would not believe how many people do the same thing...it was never like this," he said.

While we cannot control gas prices, we can control gas mileage and reduce costly trips to the pump.

The Alliance to Save Energy offers some tips:

• Maintain your vehicle. Replacing a faulty oxygen sensor can improve mileage by up to 40 percent.
• Keep tires properly inflated. This improves gas mileage by about 3.3 percent, increases safety, and prolongs tire life.
• Maintain your vehicle. Replacing a faulty oxygen sensor can improve mileage by up to 40 percent.
• Keep tires properly inflated. This improves gas mileage by about 3.3 percent, increases safety, and prolongs tire life.
• Don't Speed! Speeding, rapid acceleration and braking can lower gas mileage by 33 percent at highway speeds and by 5 percent around town.
• Buy, lease, or rent smart. Select a model with good fuel economy. Check www.fueleconomy.gov for information on fuel efficient vehicles.
• Tune up on time. Fixing a car that is noticeably out of tune, or has failed an emissions test, can improve gas mileage by an average 4 percent.

Another way to save money is by conserving energy at home. Here are some ways to do that:

• Watch the temperature
  Changing your thermostat settings by a few degrees makes a big difference on your energy bills. You can save up to 10 percent a year with a programmable thermostat that automatically adjusts the temperature by 10 to 15 percent for the hours that the house is unoccupied. Use fans. A ceiling fan can lower room temperature allowing you to turn down the air conditioner.
• Audit your home energy. Have a qualified firm do a home energy audit. A professional will inspect your home and probably find some surprising things. The cost is reasonable, especially if your energy company picks up part of the tab.
  Use fans. A ceiling fan can lower room temperature allowing you to turn down the air conditioner.
• Shift energy-intensive tasks. Use your washing machine, dryer, and dishwasher during off-peak energy demand hours. This also increases electricity reliability during heat waves. Do full loads when you run appliances.
• Turn off your computer. Also, power down the monitor when you are done. Activate the
• Shift energy-intensive tasks. Use your washing machine, dryer, and dishwasher during off-peak energy demand hours. This also increases electricity reliability during heat waves. Do full loads when you run appliances.
• Turn off your computer. Also, power down the monitor when you are done. Activate the "sleep" feature so the machine powers down when it's on but not in use for a while. When you leave a room, turn off the lights and other energy using equipment.

Most important: If you are going to save on energy costs, everyone in your household must participate. Regardless of your financial situation, this sends a good message to your children and teaches them the importance of conserving energy and money.

©2007, Kelly C. Ruggles
Kelly C. Ruggles, President of American Reliance Group, Inc., is a registered investment advisor. Mr. Ruggles is the author of "The Financial Playbook" for Retirement.

Mr Ruggles does not intend to provide personalized investment advice through this publication and does not represent that the strategies or services discussed are suitable for any investor. Investors should consult with their financial advisors prior to making any investment decisions.

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