This article suggests different ways that people could save money by upgrading their homes by making it more energy efficient. Examples include adding insulation to attics or buying energy efficient appliances. Big energy consumers are from heating and cooling your home, cooking and lighting, and your refrigerator. Although making alterations to your home would cost money, the amount of money saved is significant. The author mentions the luxuries that he can live with, and use only a fraction of the energy that most households use. This energy reduction also results from frugality; taking shorter showers, turning off lights, etc.
This illustrates opportunity costs well. Insulating is a great energy saving strategy. The process costs a few hundred dollars but in the long run, it is well worth it. The average utility bill is about $200 – 300 per month. Alterations could save you 30%, but that means that you saved $60 that month. In one year alone, you could save $720. These alterations also don’t need much maintenance so after 5 years, the money that you have saved due to the energy conservation becomes $3600. Taking time to figure out the opportunity costs will save you a lot of money in this situation.
I think that making your home energy efficient is a great idea. You not only save money but you’re contributing towards the need to save our planet. Time is scarce and this article may help many people find the motivation they need to start doing something about global warming. I like this article because in a quick glance, you can obtain a handful of ideas that will help you easily play a role in helping the environment get better. So why not take a look? You get to save the environment and build up a savings account at the same time.
l.nguyen
http://www.motherearthnews.com/Green-Homes/2008-10-01/How-To-Lower-Utility-Bills.aspx
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2 comments:
"GO GREEN!" I, too, strongly believe that people, especially owners who own older houses should upgrade their homes. By adding insulation in the attic and buying energy efficient appliances, they save more money. Yes, this may not sound practical for most people because honestly, I haven’t really seen people upgrade their houses until something goes wrong. People are stuck with the thought that as long as their houses are working fine, there is no need for any more improvements. Most people don’t go through the whole process of opportunity cost, and as you calculated, people would save around $3600 a year. Think of what you can get with that money instead of wasting it on electrical bills! If you looked at the situation in a different perspective, say a person who’s selling his/her house, than this would be a benefit. Chances of someone buying your house would be high. By letting buyers know specifically how your home is energy-efficient such as telling them that you have extra insulation in the attic and energy-efficient appliances, they would think that they too will save money. Small factors like these effect buyer’s opinions, considering the fact that houses nowadays are very expensive.
I think it's a great idea by making homes energy efficient. Not only does it save money for the home users, but also environmentally friendly too. I also agree with Henry when he said about people not upgrading their houses as long as their working fine. Some people dont realize how much they can save on their electricity bill. (Like you said, thousands of dollars a year!) Also, some home owners do not upgrade their homes because they might think their house is old and doesn't need any fancy upgrades or large amount of money wasted on it. But really, they might possibly be damaging the house by doing that! Overall, if people want to save money and at the same time be power smart, then this article would be interesting to them.
M. Man
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