Editor’s note: This article was first published in May 2013. The prices and products it cites are from 2013: low-flow taps at 9-15 euros, power strips with a switch at about 3.50 euros, compact fluorescent bulbs (since largely replaced by LEDs), and Groupon and Groupalia discount coupons.
Sometimes the best way to make money is by saving it, because, as the saying goes, “a euro saved is a euro earned”.
By saving on everyday expenses we can gain a few hundred or even a few thousand euros over the year. We can simply use that money to fatten our savings account, or we can use it to pay for our next holiday, although these days we are more likely to be looking for ways to save out of necessity.
We have already shared 5 tips to improve your personal finances, as well as some ideas for earning extra money even if you don’t have time to work overtime. Today we are going to focus on ways to save on the everyday expenses we face every single day.
1. Install low-flow taps
By installing low-flow taps both at the kitchen sink (where we wash the dishes) and in the shower, we can cut our water bill by between 25 and 60 per cent. Bearing in mind that a reduced-flow tap costs somewhere between 9 and 15 euros, this is a good investment over the medium and long term.
2. Change your light bulbs
Replacing old bulbs with compact fluorescent bulbs (and other energy-saving ones) can save us up to 40% on the electricity bill. It is true that these bulbs cost more than traditional ones, but they use energy much more efficiently. According to some experts, only 15% of the electricity consumed by a traditional bulb is used to produce light. The rest is turned into heat, which uses electricity but gives no light. Just by changing around 15 bulbs we can save 60 euros a year, and more than 600 euros over the lifetime of the bulbs.
3. Avoid “vampire” power
Most households switch off their electrical appliances (television, radio, DVD player…) but do not unplug them, so the standby light stays on. That small, practically invisible light costs each household around 100 euros a year on average. We can fix this by using power strips with an on/off switch. These strips, with 3 to 5 sockets, cost about 3.50 euros, so once again the investment pays off.
4. Don’t use an electric water heater or a ceramic hob
There are some notable differences in what we can spend on hot water and cooking depending on whether we use butane, natural gas, propane… but any of these alternatives is much cheaper than an electric water heater for the shower, which can cost us up to 50% more. Bear in mind that once we have used up the hot water in the tank, it has to heat the cold water coming in and then keep it hot, so the cost is disproportionate. A simple electric water heater could be costing us more than 1,000 euros a year compared with butane or natural gas.
5. Bottled water?
A household of five people that drinks bottled water spends, on average, more than 2,000 euros a year.
If the water in your town is of good quality, this could be a great source of savings.
If the tap water in your area has high levels of limescale or heavy metals, a good investment is a filter that can be fitted to the taps themselves or to table jugs.
6. Use discount coupons
If you have to buy something, use discount coupons from Groupon, Groupalia or similar sites. Discounts can reach 90%, and it is common to find great deals at 50% or 60% off. Depending on your habits and spending needs, the savings you can achieve over a year with these coupons can be considerable. Likewise, if you need to travel, look for low-cost trips; the internet is full of them.
7. Invest in a programmable thermostat
Programming your heating or cooling needs at home can save you more than 200 euros a year in energy. If you spend a lot of time away from home and want your house to be at the right temperature when you get back, a programmable thermostat is the solution.
8. Check your tyre pressure often
Tyres at the wrong pressure not only make us use more fuel, they also put the vehicle’s stability at risk and shorten the life of the tyres.
9. If you live in Spain, fill up your car on Mondays
It’s no secret. Mondays are when fuel is cheapest, because that is the day the European Union checks that prices are in line. By Tuesday, filling the tank already costs more. Avoid filling up at weekends, especially when a major public holiday is coming up, because prices shoot up. Filling your car’s tank is like investing in the stock market: you have to know when to buy, and that way we can save more than 200 euros a year on fuel.
10. Use your bike
Cycling is growing considerably. If the distance to your workplace and its location allow it, leave the car at home and take your bike. You can save more than 1,500 euros a year with this simple measure, and gain health too.
Other ways to save
In a previous article we talked about bundling all the family’s insurance policies to get better terms and discounts from insurers, and about renegotiating terms with your current bank and, if you are not happy, switching to online banking, which is usually free of fees.
We have also covered the benefits of bartering. If you need something and have something to offer, you can save unthinkable amounts of money.
Then there are other, more obvious tips for saving, such as buying only what you need to avoid wasting food, taking shorter showers, and so on.
Further reading
Featured image: Mathew Bajoras, CC BY-SA 2.0, via Flickr.
