The 1-2-3 Money Plan Part 13

Green Means Green.

By now, we all know the "inconvenient truth"-the Earth's environment is endangered. But here's a convenient truth: You can help Mother Earth while saving money.

Links between environmentalism and spending smart are undeniable. You don't have to look hard to see that going green means more green in your neighborhood and in your wallet. It's a realization corporate America is just now waking up to. Such terms as sustainability and carbon footprint have entered the boardroom lexicon.

For consumers, the primary misconception is that making an environmental effort will cost you money or convenience. That can be true in some cases. But today, there are many examples of how you can save green while going green.

This chapter gives just a few examples of the easiest and most worthwhile steps to take.

Gasoline.

No other price fires up Americans more than gasoline prices. Maybe it's because we have no control over prices and feel helpless. Maybe it's because it's a necessary expense, especially in suburban and rural areas. Or maybe it's because we see the prices flaunted in huge numbers at every commercial traffic intersection.

Whatever the reason, you can probably spend less on gas. That not only puts more money back in your pocket but helps the environment and America's dependence on foreign oil.

Gasoline, 1-2-3.

1. Don't spill the coffee.

2. Take it slow and steady.

3. Pump it up.

A discussion about saving on gas centers on two main areas: What you drive and how you drive.

Let's start with what you drive.

Many people think they can fix their gas-spending problem by trading in their gas-guzzler for a new fuel-efficient car. That's often false. The reason? Hidden costs.

We won't get into all the math here, but depreciation of a new vehicle and the cost of financing that vehicle often far surpa.s.ses any gasoline savings you'll reap. So, unless you're accounting for those hidden costs, you can't accurately a.s.sess the value of swapping vehicles.

Other hidden costs include higher insurance rates for a newer car and sales tax that you'll have to pay if you live in a state that levies sales tax. Let's look at sales tax alone. At 6 percent, you'll pay $1,500 in sales tax to buy a $25,000 vehicle. $1,500 buys a lot of gas for your gas-guzzler.

Now, if you were going to replace your current vehicle anyway, it makes sense to buy a fuel-efficient one. Of course, the best idea is to buy a late-model used car, which allows someone else to take the tremendous first-year depreciation hit of a new car.

So, for saving money on gasoline, that leaves us with how you drive.

1. Don't Spill the Coffee.

While driving, imagine you have a cup of coffee, uncovered, in your cup holder. You don't want that coffee to slosh out of the cup and onto you or the car floor. So, what do you do? You try to drive as smoothly as possible, with gradual acceleration, more coasting, and gradual braking. If you're accustomed to being aggressive with the accelerator and brake pedals, this tip will improve your gas mileage considerably, making your gas dollars go further.

When automotive Web site Edmunds.com set out to prove which gas-savings tips saved the most money, they found aggressive driving was the number one money drain. Moderating your driving habits with slower acceleration and braking saved up to 37 percent on gas, with the average savings at 31 percent. Could you imagine saving one-third of the money you spend annually on gasoline? If you normally spend $50 a week to put gas in your car, that's a savings of $858 a year. Two cars? That's more than $1,700 saved.

Smooth acceleration, cornering, and braking extend the life of the engine, transmission, brakes, and tires, too, saving even more money.

2. Take It Slow and Steady.

Here's another visualization that might work. Imagine that as you press down on the accelerator pedal, money leaks from your wallet. The harder you press, the more money leaks out. It's like at the gas station when you begin fueling up your vehicle: The tighter you squeeze the trigger of the fuel pump, the faster the price-readout advances.

The point is to drive slower.

Consumer Reports tested a Toyota Camry. By increasing the highway cruising speed from 55 mph to 65, the car's fuel economy dropped from 40 miles per gallon to 35. Speeding up to 75 mph cost the car another 5 mpg. One reason, Consumer Reports says, is that aerodynamic drag increases exponentially the faster you drive. It simply takes more fuel to power the car through the air.

And use cruise control when you can, even on suburban roads at 40 mph. It's a surprisingly effective way to save gas, up to 14 percent, Edmunds.com found. Cruise control smoothes out the driver's accelerator use, preventing surges. It also makes the driver take the long view of the road, rather than reacting to every change in traffic around them.

3. Pump It Up.

OK, I'll concede that keeping your car tires properly inflated is a common tip and it won't save you tons of money or gasoline. But it's so cheap and easy.

Consumer Reports found a Toyota Camry experienced a 1.3 mpg loss in highway fuel economy when tires were underinflated by 10 pounds per square inch (psi). Maybe more important, underinflated tires compromise handling and braking and wear faster. Underinflated tires also run much hotter, which can lead to tire failure.

Check the pressure of your vehicle's tires at least once a month with a tire gauge. The correct pressure usually can be found on a label in your vehicle's driver-side door jamb. Of course, you'll want to keep an eye out for a service station that doesn't charge for using its tire pump.

Gasoline Myths.

Some bad information gets pa.s.sed around about saving money on gas. Here are a few examples: * Air conditioning versus open windows. This has been a long-running debate, but the short answer is there's no significant difference in fuel economy. Do whatever makes you more comfortable.

* Additives and devices. Don't bother with fuel-tank additives and devices that attach to your vehicle. They claim to improve your gas mileage. But they don't work. The U.S. Environmental Protection Agency and Consumer Reports have tested them. None of these additives and devices makes much difference in fuel economy.

* Morning fill-ups. A common tip is to fill your gas tank in the morning, when the fuel is cool, rather than in the heat of the day. The theory is that the cooler gasoline will be denser, so you will get more for your money. But the temperature of the gasoline coming out of the fuel nozzle changes very little, if at all, during any 24-hour stretch. Any extra gas you get will be negligible, Consumer Reports says.

Home Heating and Cooling.

Most energy savings in your home will come in one of two ways: You can take steps that allow you to adjust the thermostat and use less energy or, keeping the thermostat the same, you need your furnace and air conditioner to turn on less often, mostly by keeping your paid-for air indoors longer.

Those sound like simple concepts, but they are fundamental to saving money and energy.

Home Heating and Cooling, 1-2-3.

1. Make a thermostat plan.

2. Seal leaks.

3. Avoid big-ticket fixes.

1. Make a Thermostat Plan.

Many of the usual tips about home heating and cooling are useless unless they allow you to do one simple thing: Adjust the thermostat to use less heat and air conditioning.

Call a meeting of everyone in your household and devise a plan for controlling temperature in your home. Agree on what times of day you can set the thermostat really low in the winter-without risk of freezing pipes, of course. While you're home, can you set the temperature at 68 degrees instead of 72 if everyone in the household agrees to wear sweaters and slippers around the house? Can you be comfortable at 66 degrees? Will flannel pajamas and an extra blanket on the bed allow you to lower the temperature into the 50s at night? If someone is home all day, make it a routine to open drapes to let the sun's heat in and otherwise close drapes to help further insulate windows.

The opposite is true in summer. When can you use less air conditioning and allow the house to get warmer? Will everybody agree to wear light clothing to reduce the need for cooling? Will everybody be conscious about when it's bearable to open windows to get a breeze rather than use air conditioning?

These steps seem obvious to me and they might to you too. But ask yourself why on so many gorgeous spring or fall days at perfectly comfortable temperatures so many of your neighbors have their windows closed and heat or air conditioning running? Somebody is not getting the message or there are a lot of people who close up their homes because they suffer from outdoor allergies.

If your household is undisciplined about turning the thermostat up and down and has a routine schedule, buy an Energy Star-rated programmable thermostat. This device is easy to install and costs about $100. It's basically just a timer that sets your thermostat to a prescribed temperature at various times during the day and night. For example, you could let the house get warm in the summer while you're at work and start cooling it before you arrive home. You could make back the cost of the $100 programmable thermostat in one year's worth of energy savings. However, if you're diligent about controlling temperature the old-fas.h.i.+oned way-by walking over to the thermostat and setting it by hand-you don't need a programmable thermostat.

This adjusting of the thermostat won't work unless people in the household-or at least those who control the temperature-are on board with the plan.

2. Seal Leaks.

This too seems like obvious advice, but you have to actually take the time to find and seal leaks. That's so you can keep your paid-for air indoors longer.

Walk the exterior perimeter of your home to look for cracks and unsealed seams, not only around windows and doors, but in pipe cutouts to the outdoors, chimneys, and the foundation.

Indoors, carefully hold a candle, stick of incense, or other flame near seams in your windows and exterior doors. If the flame and smoke blow, you know you have a leak. Caulking, weather-stripping, and foam sealant will plug those leaks.

Also check recessed lights, baseboards, electrical outlets to exterior walls, and unfinished s.p.a.ces behind cupboards and closets.

Seal leaky air ducts at joints, starting at the furnace air handler, and insulate ducts that run through unheated bas.e.m.e.nts or attics. In a typical house, about 20 percent of the air that moves through the duct system is lost due to leaks and poorly sealed connections, according to the federal government's Energy Star program. But duct tape isn't the answer. It's actually a poor way to seal duct cracks and seams. Use a mashed potato-like sealant called mastic. Or use the water-based kind. You paint it on duct joints and tiny holes, and it hardens. You could also use metallic duct tape with a UL-181 rating. Search the EnergyStar.gov site for the online brochure, "Duct Sealing."

Use appropriate insulation for your climate. It can increase your comfort and reduce your heating costs up to 30 percent. Start with attic insulation, followed by exterior and bas.e.m.e.nt walls, floors, and crawl s.p.a.ces. Learn more about insulating at www.simplyinsulate.com. Also, see the publication "A Do-it-Yourself Guide to Energy Star Home Sealing" by the Environmental Protection Agency. Call 1-888-782-7937 or get it online at EnergyStar.gov.

3. Avoid Big-Ticket Fixes.

Always calculate the breakeven point for any energy-savings effort. For example, replacing old windows will save energy, but they're so expensive it might take decades before you earn back enough in energy savings to pay for the windows. The same goes for replacing a functioning furnace or central air-conditioning unit.

If you're upgrading or replacing for other nonmonetary reasons, such as the attractivness of the windows or because you want to help preserve the environment, that's fine. Just know what it's actually costing you.

Little Things Mean a Lot.

So much of what we can do to save money and the environment doesn't come via grand one-time efforts, but through our daily habits.