Latest / Becoming Financially Confident / Why Did My Summer Electric Bill Jump and What Can I Do About It?

Transcript

Why Did My Summer Electric Bill Jump and What Can I Do About It? · Becoming Financially Confident

• 0:37
  You open your electric bill 205 bucks.
• 0:41
  Last month it was only 150.
• 0:43
  That's a $55 jump with no change in how you're living.
• 0:47
  And it feels like it just happened to you, like you're helpless.
• 0:51
  But there is a specific reason this happened and it's not random.
• 0:55
  And there's actually something you can do about it now.
• 0:57
  So stick around because we're getting right into it on today's.
• 1:05
  Vision.
• 1:08
  O hello and welcome to Financially Confident Christian.
• 1:13
  I'm Ralph Estep Jr.
• 1:14
  And I'm going to be your guide today as we talk about why summer electric bill spikes without warning.
• 1:20
  And this question came from one of our listeners whose Bill jumped from 150 to 205 with no change in usage.
• 1:27
  And they're wondering if they're stuck with it or if there's something they can do.
• 1:31
  It's that feeling that cost just happened to you that you have no control over.
• 1:36
  Now, if you've got a question for this show, I would love to hear it.
• 1:39
  You can go to financiallyconfidentchristian.com/question Again, that's financiallyconfidentchristian.com/question.
• 1:49
  Let's get right to today's listener question.
• 1:52
  And in the subject line, they said, why did my summer electric bill jump and what can I do about it?
• 1:56
  Well, I'm going to give you some answers right now.
• 1:58
  It's what they wrote.
• 1:59
  Hi, Ralph.
• 2:00
  My electric bill went from 150 to 205 this month.
• 2:04
  And, and I haven't changed anything and haven't been using more electricity.
• 2:08
  Do you have any tips on how to get my bill back down or is it just going to be high no matter what for the summer?
• 2:14
  Thank you.
• 2:15
  I'm going to tell you right now as I record this.
• 2:17
  The last few days it has been over 100 degrees here in Middletown, Delaware.
• 2:21
  It has been hot.
• 2:23
  I like to play church league softball and they've had to cancel the games because it's just so hot.
• 2:28
  So I get this.
• 2:30
  Your summer electric bill spike isn't random.
• 2:32
  It really comes from three specific things.
• 2:34
  And you know, I hear people.
• 2:35
  My, my youngest son, he just got his own apartment.
• 2:38
  I guess it's about a year ago.
• 2:39
  And he's been bracing himself.
• 2:41
  He's like, dad, I'm not sure what's going to happen with this.
• 2:44
  And I said to him, well, son, it comes from several different things.
• 2:47
  It comes from the rate structure, from the utility.
• 2:50
  It comes from appliance inefficiency.
• 2:52
  And actually in some places, it actually comes from usage timing.
• 2:57
  Now listen, unless you've got some magic pills, we can't change the weather, but you can control all three of those.
• 3:04
  So today we're going to find out exactly where that $55 went.
• 3:08
  So let's get right to it.
• 3:09
  The first thing I'm going to encourage you to do is find out where the money is actually going, how many times you actually look at your bill.
• 3:17
  Now, if you're in one of those places where there's peak and off peak hours, peak is usually the afternoon and the early evening.
• 3:25
  And some utilities actually charge more per kilowatt hour in that peak time.
• 3:30
  So one of the things you can do right away is write down the times and the rate differences and think about it like this.
• 3:37
  There are three appliances that most people have that drive 60% of summer usage.
• 3:42
  Guess what?
• 3:42
  They are no brainer here.
• 3:44
  Air conditioning, refrigerator and yes, still water heating, which kind of confuses me.
• 3:49
  We cool our homes, but then we want to get in a hot shower.
• 3:52
  But that's for another day.
• 3:53
  But that's certainly where your $55 jump is coming from.
• 3:57
  What you don't control is the weather and you don't control the utility company's rate structure, but you do control when you run your appliances.
• 4:05
  And if you're in one of those places where it's different during peak hours, guess what, you can change that a little bit.
• 4:11
  You can look at your thermostat.
• 4:13
  We'll talk about that a little bit later.
• 4:14
  And you can also do something about phantom loads, which I'm going to talk about here in a minute as well.
• 4:19
  Now, some of the jump is the season of the year.
• 4:22
  Like I said here in Delaware, it's over 100 degrees.
• 4:25
  And some of it's just how things are running right now.
• 4:29
  So start where the money's actually going, not where you think it is.
• 4:32
  Get to some details, get some clarity.
• 4:34
  So let's talk about some things you can actually do.
• 4:37
  A couple things you can do is you can shift the timing and adjust the thermostat.
• 4:41
  Now if you live in one of those places that has those peak versus non peak times, you can run your dishwasher, you can do laundry and any of those high energy appliances during those off peak hours, usually after
• 4:54
  9pm or before 7am Buy yourself some timers or just set that stuff to run before you go to bed.
• 5:00
  You're not using less electricity, you're just using it when it costs less.
• 5:05
  And in my research, that can save you $20 to $40 a month, depending upon your rate structure.
• 5:10
  Now, be careful.
• 5:11
  You might not live in a place where there's different rates based on the time of day.
• 5:15
  Like in my particular place.
• 5:16
  We don't have that, so that won't work for us.
• 5:19
  But here's what I talk about when I say phantom power.
• 5:22
  One of the things you can do is check to see what's plugged in and still drawing power when it's not even being used.
• 5:28
  Things like coffee makers, yes.
• 5:29
  Those phone chargers, gaming console cable boxes.
• 5:34
  Here's a tip that I read online.
• 5:35
  Plug your entertainment center into a power strip and switch it off when you're done for the day.
• 5:40
  I used to have a lady that worked for me at the credit union.
• 5:43
  She got a little bit carried away with this, but she actually put a breaker in her main part of her house and when she'd leave for the day, she killed the breaker.
• 5:51
  So no phantom power was going to work.
• 5:53
  But think about this.
• 5:54
  If you take 30 seconds to scan your environment of your house, that might save you $5 to $15 a month.
• 6:00
  Here's one for air conditioning.
• 6:02
  I caught my son on this one.
• 6:03
  Think about this.
• 6:04
  Right now, it's hot on a 95 degree day.
• 6:07
  If you've got your thermostat set at 72 degrees, that thermostat is trying to close a 23 degree gap from 95 to 72.
• 6:16
  I did the math for you, but what if you set it at 78 degrees?
• 6:20
  That gap drops from 17 degrees or drops by 26%.
• 6:26
  And the question isn't whether you can live without AC.
• 6:28
  I'm not telling you to turn the AC off.
• 6:31
  It's can you live it at 78 or 77 during the day and then maybe drop it to 72 at night?
• 6:38
  One of the big things you can do is go buy yourself a programmable thermostat.
• 6:42
  I have to tell you, it will save you what it cost you in just a few months of summer savings.
• 6:48
  That alone, those thermostat adjustments can save you 30 to $50 a month.
• 6:53
  You have to remember something.
• 6:55
  Comfort and savings aren't enemies.
• 6:58
  They're just a negotiation.
• 7:00
  But then you got to build a plan and you got to track it.
• 7:03
  Here's one of the things I'm going to recommend you do.
• 7:05
  Pull your last three electrical bills and look at the trends.
• 7:09
  Look at June, July, and then look at the same time last year.
• 7:13
  That's going to tell you whether the jump is normal for summer or actually unusual.
• 7:17
  Hey, I've heard situations where people had appliances that were they were acting weird.
• 7:22
  They were drawing more electricity.
• 7:24
  So go back and look what it was last year.
• 7:26
  Now, also pay attention to how hot it was during this time.
• 7:30
  And then after you make some of the changes we talk about, track the next two bills and see if they actually go down.
• 7:36
  And when they do, listen, that's real money back in your pocket.
• 7:39
  And that's worth noticing.
• 7:40
  That's what helps you stay encouraged.
• 7:43
  Because a plan you track beats guessing and hoping.
• 7:47
  Now, one of the things you mentioned in your listener question was you asked if your bill's just going to be high no matter what for summer.
• 7:53
  And as I dug into that, I heard something deep in your voice.
• 7:57
  I, I heard resignation.
• 7:59
  And here's what faith doesn't promise.
• 8:02
  Faith doesn't promise us that utility companies are going to charge you less.
• 8:06
  It doesn't promise us that summer heat is going to go away.
• 8:09
  Hey, one thing about weather, it is what it is.
• 8:12
  But here's what fate does promise us.
• 8:15
  We've been given a mind that can think through problems and develop resources that we can work with.
• 8:21
  And I love what it says in Proverbs 27:12.
• 8:24
  It says, the prudence, see danger and take refuge.
• 8:27
  But the simple, keep going and pay the penalty.
• 8:31
  And I want you to think about that for a second.
• 8:33
  Because the difference between resignation and stewardship is one sentence.
• 8:39
  Resignation says, well, this is just going to happen to me.
• 8:43
  I see people all the time.
• 8:44
  I'm bad with money.
• 8:45
  This just happened to me.
• 8:48
  That's resignation.
• 8:49
  But stewardship said something else.
• 8:51
  It says, I can do something about this.
• 8:55
  You're allowed to feel frustrated that your bill went up, but you're not helpless.
• 9:00
  And the moment you realize that everything can change, you're not stuck paying whatever the utility company throws at you.
• 9:07
  I've given you some small changes that add up to real money.
• 9:09
  Hey, could add up to almost half of your bill, and that money to keep is your money.
• 9:15
  So here's your win for today.
• 9:17
  I want you to go check your utility bill for those peak and off peak hours and write them down.
• 9:21
  Now, if you don't have that, unfortunately, that's not going to work for you.
• 9:26
  But take about five minutes, go on your phone or online and go look at your bill.
• 9:30
  Look at, compare it to this year, compare it to last year.
• 9:33
  You're not trying to fix the whole bill.
• 9:35
  Just find one thing that you can do and find one thing that you can shift, that you can see, and that will make a huge difference.
• 9:43
  Well, let's get right to our Bible verse.
• 9:45
  And I've already let the cat out of the bag.
• 9:46
  Today it's Proverbs 27:12.
• 9:49
  A prudent person foresees the danger ahead and takes precautions.
• 9:54
  The simpleton goes blindly on and suffers the consequences.
• 9:57
  Now that's from the new Living translation.
• 9:59
  Gets a little bit more.
• 10:00
  More red there, doesn't it?
• 10:02
  But think about it.
• 10:03
  A prudent person, they see what's happening and they get ahead of it instead of waiting for the bill to arrive and panicking.
• 10:10
  That's what I said to my youngest son.
• 10:11
  I said, think about it.
• 10:12
  Set that thermostat now.
• 10:14
  He told me he's got his thermostat set at 68.
• 10:16
  I can't wait till he gets his first bill.
• 10:18
  He.
• 10:18
  He's going to get a zonker.
• 10:20
  But check that thermostat.
• 10:22
  Check those.
• 10:23
  When your appliances run.
• 10:24
  Look at those things that are stealing electricity when you're not using them.
• 10:28
  It's not about being paranoid.
• 10:30
  It's about true stewardship.
• 10:33
  Your summer electric bill is telling you something, and a prudent person listens to that.
• 10:38
  Well, how about we pray together?
• 10:40
  Heavenly Father, I want to bring before you someone who opened their electric bill and they felt that sinking feeling, a cost beyond their control.
• 10:48
  So right now, Lord, give them wisdom to see where their money is actually going.
• 10:52
  But at the same time, give them courage to make those small changes.
• 10:56
  Help them to understand that stewardship isn't about sacrifice.
• 11:00
  It's about being intentional.
• 11:02
  And, Lord, protect them from the feeling of helplessness and help them see the places where they can actually have power and make changes.
• 11:10
  And I ask this in the name of Jesus.
• 11:13
  Amen, friend.
• 11:15
  In the end, I want to answer your question really simply.
• 11:18
  You're not stuck with that $55 jump because of the new normal.
• 11:21
  You got to pay it now because it is what it is.
• 11:24
  But understand what's driving it and put the power back in your hands.
• 11:28
  Find out where the money is going.
• 11:30
  Shift when you run big appliances.
• 11:32
  Adjust that thermostat and listen.
• 11:34
  Eliminate those phantom loads, those things that are drawing power when they're not used.
• 11:39
  Pull those statements and take a look at it and see what you can do.
• 11:42
  Now, maybe you're battling something in your financial life.
• 11:46
  I'd love to hear from you.
• 11:47
  You can send me a voicemail.
• 11:48
  You can just record it by going to financiallyconfidentchristian.com/voicemail.
• 11:54
  I'll put a link in the show notes, but again, that's financiallyconfidentchristian.com/voicemail.
• 12:01
  Thank you.
• 12:01
  So much for joining me today.
• 12:03
  I'm going to stay here in the air conditioning, but I'm going to encourage you to stay financially savvy.
• 12:07
  May God bless you, and you have a truly great day today.