Replacing your appliances will cost you money right away as you have to pay for the appliances. But might it save you money in the long run? Many companies have focused on creating much more efficient appliances today, in the light of the environmental crisis.
If you have an old appliance that you replace with a new appliance, it will most likely be more electricity-efficient. With more efficiency, you can save money on your electricity bill every month once you have replaced the appliance. Maybe even a lot more than you think.
My girlfriend's parents had an old refrigerator. They were getting tired of it and wanted a new one. The new one cost $800, but they bought it on credit and made a deal where they paid $70 a month for one year. The next time they received their electricity bill, it had decreased from $44 to $9 or a monthly saving of $35. They didn't understand this, as it was a huge decrease. The next month, it was also at this low cost again. So, they investigated what had happened and discovered it was because the old refrigerator had used so much electricity. The result was that they in effect only paid $35 a month for the new refrigerator and after a year they would get a net saving of $35 every month for as long as the new refrigerator could be used. They got a great deal, even though that was not their focus.
This story was about a refrigerator. But you can replace the refrigerator of this story with many other appliances in your everyday life. Maybe it is a new TV or a new gas heater. You can also apply this with your car. With higher fuel prices, fuel efficiency suddenly becomes more important. If you really get into it, it might also be worth a consideration to invest in solar cells to produce your electricity. It might be a big investment, but consider whether it will pay off for you.
Before you run out and buy a new refrigerator, remember to make a calculation of the benefits first. Estimate how much electricity you will save and what it will cost you to replace the appliance. If you can break even in three to five years, it might be a good deal, even if you have to buy it on credit.
Don't forget that by reducing your electricity bill you not only help yourself. You also help the environment and thereby society, so it is a win-win situation.
Brian Ullitz has written the e-book "Enjoy Healthy Personal Finances". He is educated at Copenhagen Business School in Denmark and has worked with finances since 1999. He is now the driving force behind the personal finance site http://finance4everyone.org/
He enjoys talking about finances and loves to help people improve their financial knowledge. It is his firm belief that everyone can experience prosperity. This includes you too. Visit our site, and find out how you can be rewarded for implementing our practical financial advice in your own life.
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