Making Cents: Here's how to save money on your energy bill

Grainne McGuinness speaks to financial advisor Kel Galavan to find out ways to manage your household budget

Making Cents: Irish author and financial adviser Kel Galavan is an expert, who offers advice to her thousands of followers on Instagram @mrssmartmoneyhq.

With energy prices on the rise and temperatures dropping as we come into winter, many Irish households are understandably worried by the prospect of soaring utility bills.

As discussed last week, one way to counteract the price hikes is to switch your provider and avail of better rates. But the other thing to look at is the amount of energy used in the first place.

When it comes to saving money in the home, Irish author and qualified financial adviser Kel Galavan is an expert, who offers advice to her thousands of followers on Instagram @mrssmartmoneyhq.

As someone who has put a lot of thought and effort into reducing her household expenses, I asked Kel if her family's energy usage is something she has addressed.

“Most definitely, energy usage is a key part of any household budget,” she said. “If some are determined to save money there are lots of things that they can choose to cut out, like takeaways, buying clothes or coffees for example.

“However, energy in our homes is not one that can be easily gotten rid of. It is a fixed expense that we all have and with the news and reports coming out our energy prices appear to be going nowhere but up.

“But here’s the thing, there are some things that are within our control and there are some things that are not. We as consumers can only control what is within our control. I'm a firm believer in putting your energy and time into the things you can control rather than the things that you can't.

“While most of us are not in a position to go off-grid anytime soon, there are some things within our control,” Kel says there are a range of actions householders can take to reduce bills, from immediate small steps to longer-term projects.

“When it comes to energy usage in our homes, I tend to divide it into three levels - going from the quick easy wins in the short term to long term more expensive projects to work toward overtime.” First, the basics.

“Heating water of any kind is an area of high usage in our homes,” Kel said. “Many will be aware that to save on electricity it is prudent only to boil the amount of water that they need for that cup of tea or pot of rice.

“However, things like turning the thermostat on the immersion down even a couple of degrees will have a big positive impact on the cost of heating.” Other easily implemented suggestions include keeping electric showers as short as possible and only using the tumble dryer when necessary.

“Getting the family into the habit of turning off lights when leaving a room and turning off sockets when not in use,” Kel added. “These have a smaller impact but it does make a difference over time.” Kel is also a firm believer in regularly switching suppliers. “There are new promotions all the time and there is stiff competition for your custom,” she pointed out. “Take advantage of that and switch every year.

“Also as light bulbs and appliances need to be replaced, take time to do some research and pick the most energy-efficient for your lifestyle. There may be a higher price point initially but the running cost will be notably lower in the long run. A lagging jacket on the immersion and warm curtains are good ways to reduce heat loss in the home and save on energy.” In the longer term, projects like solar panels, heat pumps, and better insulation can significantly impact heat and electricity costs.

“I recommend opening a fund for big projects like these and saving for them over time,” Kel said. “Save a set amount each week/month towards the cost. If possible, automate this and treat it as a bill that is direct debited out every pay period, future you will thank you for the toasty home.

“Remember, taking action is an empowering thing, no matter how small that action is. Make a plan to manage your energy usage and stick to it. It will pay dividends over time.” Kel’s book, Mindful Money is available wherever books are sold.

Making Cents tip of the week

The National Transport Authority (NTA) is currently running an introductory offer of €10 for 10 journeys for customers using the new TFI Go mobile ticketing app on selected Bus Éireann services. 

The offer is available on city bus services in Cork and Limerick red zones as well as town bus services in Athlone and Navan.

The app can currently be used on selected services operated by Bus Éireann and will be rolled out on some TFI Local Link and other bus services across the TFI network in 2022.

“The discounted fares for users of the TFI-Go App represents the best ever value we have offered our customers," 

CEO of the NTA Anne Graham said. "This app provides an alternative for customers who don’t want to carry a TFI Leap card with fares that are cheaper than cash.

"Even the normal TFI GO single fare will be up to 30% cheaper than the current cash fare and represents great value." 

Find out more and get full details of all routes at www.transportforireland.ie.