Advertiser Disclosure
Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card companies and banks from which receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. does not include all banks, credit card companies or all available credit card offers, although best efforts are made to include a comprehensive list of offers regardless of compensation. Advertiser partners include American Express, Chase, U.S. Bank, and Barclaycard, among others.

11 Ways to Reduce and Save Money on Utility Bills


It’s common for many families to stare dejectedly at $200, $300, $400, and sometimes even $500 in utility bills every month. It can be an especially hard pill to swallow when times are tight.

This issue hits close to home for me. My dad lives in Lousiana, and his monthly bill is an astonishing $430 per month. And that’s living in the Sunny South!

So what can you do to reduce your utility bill without being forced to move? Here are 11 ways you can immediately reduce your utility bill affordably and effectively.

Ways to Save on Utilities in Your Home

1. Add Attic Insulation

Add Static Insulation

According to Energy Star, half of all the energy we use in our homes goes toward heating and cooling. And the U.S. Department of Energy (USDE) reports the attic is where most of your home’s heat escapes to. Heat rises, and most homes don’t have enough insulation up there to keep it from getting out. So, out it floats.

Motley Fool Stock Advisor recommendations have an average return of 397%. For $79 (or just $1.52 per week), join more than 1 million members and don't miss their upcoming stock picks. 30 day money-back guarantee. Sign Up Now

Fiberglass insulation is relatively cheap, and it’s easy to install yourself. I have zero home improvement skills, and I added a ton of insulation to my own attic last year. Did it make a difference? You bet it did. Energy Star estimates you can save up to 20% on your heating and cooling costs by effectively insulating your home.

If you’re worried about installing attic insulation yourself, do a quick search online. There are tons of DIY tutorials that will coach you through the process.

2. Apply Weather Stripping

Weather stripping is simple to install, and it makes a big difference in keeping out drafts. Before I applied my own weatherstripping, I could literally feel a cold wind coming in through both my kitchen doors. Now, the outdoor air stays out. In addition, weatherstripping helps you keep out rain and prevents inside (heated) air from escaping.

Weather stripping is another inexpensive, super-easy project that will make a big difference in your home’s energy bills. Again, I have zero home improvement skills, and I didn’t mess it up.

3. Insulate Outlets and Light Switches

This smaller project is one people often overlook because they don’t realize outlets and switches can be sources of air leaks. But outlets and light switches need to have insulation added to them, especially when they’re on an outside wall.

Just make sure you get specialized outlet and switch plate seals, which can found inexpensively at any hardware store. The insulation is made specifically for outlets and switch plates, so you don’t have to worry about fire risks.

4. Install a Programmable Thermostat

Install Programmable Thermostat

The USDE estimates you’ll save 10% off your utility bill just by installing a programmable thermostat, like this one from Nest.

This project is a little more involved than insulating switch plates, but it’s not extremely difficult. Every thermostat comes with detailed instructions so you won’t get lost.

And don’t forget: The more you turn your thermostat down in the winter and up in the summer, the more you’ll save. I keep my house at 55 degrees at night and 64 degrees during the day in the winter months. I live in Michigan, and I stay comfortable in this range. It did take some getting used to, but if you go slow, you’ll be able to keep making small adjustments to save even more. For more tips, here are some cheap ways to keep warm in the winter.

If your house is empty during the day, set the temperature to drop much further in the winter months and higher in the summer months while you’re away. You can program it to return to more comfortable temperatures just before you get home.

For a roughly $70 investment, installing a programmable thermostat is one of the smartest things you can do to reduce your energy bills.

5. Install a Low-Flow Showerhead

Did you know that many older showerheads put out 4 to 5 gallons of water per minute? The low-flow showerhead I use puts out a mere 1.5 gallons. And I still get awesome, forceful showers.

Low-flow showerheads run the gamut on price, from as low as $10 to as high as $200 or more. But they’re easy to install, and they’ll help conserve water while saving you money every day.

6. Insulate Your Water Heater

If you have an older water heater, you can save 4% to 9% on your water heating costs simply by insulating it. The USDE estimates that insulating hot water heater jackets prevent standby heat loss by 25% to 45%, enabling you to heat your water more efficiently.

This is another really simple project that can pay off big over the long run.

7. Wash Clothes in Cold Water

Wash Clothes Cold Water

Did you know that 90% of the energy your washer uses goes to heat the water? And since most American families do about 400 loads of laundry per year, switching to cold water can really add up.

To put it in perspective, check out these cool stats from Treehugger. Washing every load on the hot/warm cycle for a year is equivalent to burning about 182 gallons of gasoline in a car. In an average (19.8 miles per gallon) car, that’ll get you around 3,595 miles.

When you use cold water to wash, Treehugger reports, you use energy only to run the machine – about .24 kWh – without using any energy to heat the water. That .24 kWh translates to about .41 pounds of CO2 per load, or about 162 pounds of CO2 per year. That’s about 8 gallons of gas or 164 miles of driving.

That’s a huge difference.

8. Pack the Dishwasher

When you use the dishwasher, never run a half load. Pack that baby to the brim! Want to save even more? Turn off the manual “heat dry” and let your dishes air dry.

9. Hand-Wash Large Pots, Pans, and Dishes

These take up a lot of room in the dishwasher, and you’ll use the dishwasher considerably less if you wash and dry these items yourself.

10. Buy Energy Star Appliances

Buy Energy Star Appliances

Energy Star-rated refrigerators, washers, furnaces, and water heaters use a fraction of the energy their non-rated counterparts use. Most of the time, they’re priced competitively as well.

Occasionally, you might have to pay more for an Energy Star-rated product, but you’ll always earn your money back in the long run. If you want to save on your utility bills, always look for the Energy Star logo first when buying large appliances.

11. Cook Strategically

It takes a lot of energy to heat up your oven. If you’re cooking something small, use your toaster oven instead. I rarely use my oven anymore because my toaster oven is much handier. I’ve even successfully baked cookies and pies in it. It also leads to much quicker cooking time since toaster ovens have less area they need to heat.

Microwaves also use a fraction of the energy compared to an oven or stovetop. Whenever you can, heat things up in the microwave to save energy.

Final Word

When it comes to saving money on your utility bills, identify the items in your house that use both water and energy. Dishwashers, washing machines, and water heaters are three major appliances you may want to consider replacing with more energy- and water-efficient models.

Also, remember that your air conditioning and heater usage is the biggest game-changer when it comes to your utility bill. If you turn the temperature up a little in the hot months and down a little in the cold months, you’ll save hundreds of dollars per year.

What other tips or strategies do you have for saving on utility bills?

Heather Levin is a writer with over 15 years experience covering personal finance, natural health, parenting, and green living. She lives in the mountains of Western North Carolina with her husband and two young sons, where they're often wandering on frequent picnics to find feathers and wildflowers.