When You Can Save Money by Spending More

by:Sonya Stinson
Monday, September 27, 2010

article was clipped from http://financiallyfit.yahoo.com/finance/article-110668-6660-1-when-you-can-save-money-by-spending-more?ywaad=ad0035

Home Insulation
Wrapping your home in the best insulation can save money on energy.
On his website, BuildItSolar.com, retired engineer Gary Reysa posted an insulation upgrade cost-saving calculator he created. The savings depend on how hot or cold your climate is.
If you live in Orlando, Fla., you would only shave off up to $136.74 over 10 years for upgrading from an R-value of 10 to an R-value of 30 if your home is heated with natural gas, and about $256.49 if you used electricity. In Duluth, Minn., the same upgrade yields up to $3,817.33 in savings over 10 years with natural gas heat and $7,160.29 with electric heat. An R-value is a measure of the insulation material's capacity to resist heat flow.
Reysa warns that the calculator doesn't take every heat source into account, so your actual savings may not be as high as the number you get. Areas with cold climates would have the smallest discrepancies.
Light Bulbs
Swapping your five most frequently used light fixtures or their bulbs for Energy Star-qualified compact fluorescent lamps can save money -- more than $165 a year, according to Energystar.gov, a U.S. Department of Energy and the Environmental Protection Agency website.
Fluorescent lamps use an estimated 75 percent less energy, generate 75 percent less heat and last up to 10 times longer than incandescent light bulbs. And while a $2 four-pack of incandescent bulbs may seem like a better deal compared to $2 to $15 a piece for these lamps (for 40, 60 or 100 watt lamps, respectively), the more efficient fluorescent lamps use about $130 less in energy costs per bulb over their lifetimes, according to Energystar.gov.
Let's say you're lighting up 10 rooms with three bulbs each. Switching to the pricier compact fluorescent lamps actually saves you nearly $3,900 in the long-run, according to Energystar.gov.
Other Energy Savers
With full-size refrigerators starting at $400 and passing $4,000 for some high-end, side-by-side models, you may be tempted to hold onto your old fridge for as long as it keeps humming to save money. But according to Energystar.gov, refrigerators made before 1993 cost an extra $50 per year to operate compared to new Energy Star-qualified models. A box made before 1980 costs about $150 more per year to run.
The website also points to a potential 20 percent savings from installing more efficient heating, ventilating and air-conditioning, or HVAC, units in your home. But before you replace your HVAC system, check for air leaks, which are likely culprits for your energy dollars disappearing.
Through 2010, you can get federal tax credits worth 30 percent of the cost, up to $1,500, to install Energy Star appliances, windows, insulation, roofs, HVAC systems and water heaters in an existing home that is your primary residence. A number of states also offer rebates for purchasing similar energy-efficient upgrades.


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Scott's Contracting
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