Worked Examples
Sometimes, seeing the numbers makes all the difference. Let’s walk through a few concrete examples to show how these small changes can add up to significant savings on your utility bills and overall budget.
Example A: $40/Month Electric Reduction Plan
Let’s go back to our retiree, Susan. Her average electric bill is $120, but it spikes to $160 in the summer. She wants to know how to lower your electric bill in the summer and all year round. She decides on a three-part plan.
First, she tackles lighting. She identifies the five most-used light fixtures in her home. Each has a 60-watt incandescent bulb. She replaces them with 9-watt LED bulbs that cost $2 each, for a total investment of $10. These bulbs are used about four hours per day. The old bulbs used 1.2 kWh per day (60W x 5 bulbs x 4 hours / 1000). The new LEDs use just 0.18 kWh per day (9W x 5 bulbs x 4 hours / 1000). At an average electricity rate of $0.15 per kWh, she saves about $0.15 per day, or $4.50 per month, just on lighting. Her $10 investment pays for itself in just over two months.
Second, she buys two power strips for $15. She plugs her TV and entertainment center into one, and her coffee maker and toaster into another. She diligently turns them off at night and when she leaves the house. This reduces her standby power consumption, saving her an estimated $8 per month.
Third, she commits to washing all her laundry in cold water and adjusting her thermostat to 78°F during the day. Between these two powerful habits, she conservatively saves another $27.50 per month. Her total monthly savings: $4.50 (LEDs) + $8 (power strips) + $27.50 (laundry/thermostat) = $40.00. Her one-time cost was just $25, and now she has an extra $40 in her budget every single month.
Example B: A Revised Budget After a Rent Increase
Imagine Susan’s landlord increases her rent by $75, from $900 to $975. This is a significant hit to her fixed-income budget. Instead of panicking, she revisits her plan. She’s already saving $40 on utilities, which covers more than half the increase. She then decides to use senior discounts more strategically. By shifting her main grocery shopping day to Wednesday, she gets a 5% discount at her local store. On her $250 grocery budget, that’s a $12.50 savings. She also cancels a streaming service she rarely uses, saving another $15. Finally, she reduces her “buffer” category by $7.50. The total adjustments ($40 + $12.50 + $15 + $7.50) completely cover the $75 rent increase. Her budget holds up because it’s flexible.
Example C: Water Savings from a Low-Flow Showerhead
Susan enjoys her daily 10-minute shower, but her old showerhead uses 2.5 gallons per minute (GPM). That’s 25 gallons per shower. She buys an EPA WaterSense-certified showerhead for $20 that uses only 1.5 GPM. Now, her 10-minute shower uses just 15 gallons. She saves 10 gallons of water every single day. Over a year, that’s 3,650 gallons of water saved. If her combined water and sewer rate is $0.015 per gallon, that’s an annual savings of $54.75. Her $20 showerhead pays for itself in less than five months. Plus, she saves on the natural gas used to heat that water, adding to her total savings. This is a classic example of a small, one-time investment with a lasting positive impact.
