Feeling the heat

There is really no getting away from it. If you live in Canada with its cold winters and shorter days you need heat and light. And with the ever-fluctuating price of oil and the current state of the economy some homeowners will struggle as they try to incorporate utility expenses into the household budget.
What's worse is the fact household expenditures - mortgages, utilities, transportation, etc - are on the rise.
According to a recent survey, Canadian households spent an average of $69,950 in 2007, a 3.3 per cent increase from 2006. That's higher than 2007's annual inflation rate of 2.2 per cent.
That doesn't mean homeowners don't have options to help get, and keep, their finances in check. But you have to set priorities, especially when budgeting for utilities.
Obviously having food on the table is more important than cable TV. And being able to heat your home trumps your Internet or mobile phone package.
There is an old budgeting adage, you can't have everything you want, but you can have anything you want.
So how do you build those utility expenses into the budget?
Start with the big one - electricity.
The first step is to cut your "phantom" power consumption. Household electronics like stereos, computers and televisions continue to consume electricity even when they are turned off. It might only mean a couple of dollars on your electricity bill but over the course of a year it does add up. And wouldn't you rather have that money in your pocket?
Cutting phantom power is as easy as plugging those electronics into a power bar. When not in use, simply switch off the bar.
The next step is change over those antiquated, energy-sucking incandescent light bulbs in favour of either compact fluorescent or LED bulbs. While Energy Star qualified bulbs do cost more they use up to 75 percent less electricity and last up to 10 times longer than regular bulbs.
Hot water tanks are one of the highest sources of energy consumption in the home. Reducing hot water consumption can reduce your electricity bill considerably. Use low-flow showerheads. Limit the use of major appliances by washing only full loads of clothes and use the cold water cycle where possible. And when going away on vacation or just for the weekend, turn off your hot water boiler.
On nice days, hang clothes outside to dry instead of using a clothes dryer. And when purchasing a new appliance look for models with low energy consumption ratings.
Then there's home heating.
The first step to control heating expenses, whether your primary source of heat is oil, electricity or wood, is maximizing heating efficiency and, where possible, cutting waste.
To reduce heating waste you have to monitor the thermostat in your home and keep it at a temperature you can comfortably live with.
That doesn't mean freezing all winter or sitting at the diner table in a survival suit. But if you are walking around your house in shorts and a t-shirt in the middle of February you are likely wasting your heating dollars.
Heating efficiency may mean doing some renovations to your home like installing Energy Star rated windows and doors, adding another layer of insulation in the attic or installing a heat recovery unit, along with a more efficient air exchange unit.
Yes, these things cost money but in the long term they will save you a bundle.
You can also cut your household expenditures by looking at your telephone service. Look at what features you have and ask yourself if you really need it or are you simply wasting money.
For example if you make a lot of long-distance calls it is in your best interest to have a long-distance package. But do you really need features like caller ID?
It may be small and some might think insignificant but these small amounts can add up.
And that's where the consumer needs to pay attention.
Some utilities offer discounts, no matter how small, if you pay your bill early.
And in the current economic climate utilities want your business and most have bundled packages in their arsenal.
For example cable and telephone companies are competing fiercely with each other to pull customers into their fold. If you need home telephone, cellular, cable and internet services it makes good budgeting and financial sense to bundle them all into one company whenever possible.
But it is imperative that you, as the consumer, tailor your package to your needs, not what the company wants you to purchase.
While some would argue budgeting your utilities is simply being cheap, it is actually more about controlling your money and getting a handle on your household expenditures.
If you are not willing to control your utility costs, you will eventually feel the heat, but not the kind that keeps your family warm on those cold winter nights.
Guest Editorial written by Kirk Squires, who is a freelance writer living in Clarenville, NL.