This is Tip #2 of the 30 Day Challenge to save $1,000.
Today's tip is to increase the thermostat on your air conditioning unit to 4 degrees warmer starting right now. Below, I'll show you some additional math and tips to show you the effect this will have on your finances.
How much will you save? A rule of thumb is that you can save up to 3% on your energy bill for every degree you set your air conditioning thermostat above 72 degrees, according to the California Energy Commission.
To keep the math easy, let's assume we can save 10% by increasing the air conditioning thermostat 3-4 degrees. Here are some sample savings. Note: The actual numbers for the electric bills were obtained very un-scientifically (too many variables to consider).
Chicago: $10 off a $100 bill New York: $15 off a $150 bill Phoenix: $20 off a $200 bill.
How to make this tip actually work
I can already hear the sighs of a thousand people: "But Ramit," you might say, "I already know about this." Then why don't people do it?
Because (1) it's not sexy and novel, and (2) it only takes one hot day after work when you come home and say, "Forget it, I'm turning the A/C up today." And once you adjust your A/C down, it never goes back up again.
The trick is this: First, turn your thermostat way up when you go to work. That's free money. Second, think about what causes you to turn down the A/C. When you come home from work, the first thing you notice is probably how hot it is - and it's just natural to walk over to the A/C unit and turn it way down. Avoid this: Sure, set the A/C to a reasonable temperature, but instead of blasting it at 65 degrees, use a fan and change into cooler, lighter clothing right when you come home. Don't have a fan? Here's a fan I like. No more thinking - it's just a natural part of coming home and putting your bag down. (Read more about barriers here.)
I'm doing this at my house. As soon as I come home, I change and turn on the fan.
Savings: $10-20
Bonus reading about thermostats
I know, I know, what could be more exciting? Check out this page on Madison Gas and Electric for some common myths about your thermostat.
Last thing to do
Leave a comment on this post describing how much you're saving with this tip. Each day, I'll ask you to post how much you've saved cumulatively. Use this as a way to track your own progress (it will also encourage others to join)
Sign up for more tips from Sethi's Web site
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