9 Unexpected Energy (and Money) Savers

Here are a few surprising and simple ways to cut your energy bills this season that we found at HouseLogic.com.

1. Put lamps in the corners: Did you know you can switch to a lower wattage bulb in a lamp or lower its dimmer switch and not lose a noticeable amount of light? It’s all about placement. When a lamp is placed in a corner, the light reflects off the adjoining walls, which makes the room lighter and brighter.
2. Switch to a laptop: If you’re reading this article on a laptop, you’re using 1/3 less energy than if you’re reading this on a desktop.
3. Choose an LCD TV: If you’re among those considering a flat-screen upgrade from your conventional, CRT TV, choose an LCD screen for the biggest energy save.
4. Give your water heater a blanket: Just like you pile on extra layers in the winter, your hot water heater can use some extra insulation too. A fiberglass insulation blanket is a simple addition that can cut heat loss and save 4% to 9% on the average water-heating bill.
5. Turn off the burner before you’re done cooking: When you turn off an electric burner, it doesn’t cool off immediately. Use that to your advantage by turning it off early and using the residual heat to finish up your dish.
6. Add motion sensors: You might be diligent about shutting off unnecessary lights, but your kids? Not so much. Adding motion sensors to playrooms and bedrooms cost only $15 to $50 per light, and ensures you don’t pay for energy that you’re not using.
7. Spin laundry faster: The faster your washing machine can spin excess water out of your laundry, the less you’ll need to use your dryer. Many newer washers spin clothes so effectively, they cut drying time and energy consumption in half—which results in an equal drop in your dryer’s energy bill.
8. Use an ice tray: Stop using your automatic icemaker. It increases your fridge’s energy consumption by 14% to 20%. Ice trays, on the other hand, don’t increase your energy costs one iota.
9. Use the dishwasher: If you think doing your dishes by hand is greener than powering up the dishwasher, you’re wrong. Dishwashers use about 1/3 as much hot water and relieve that much strain from your energy-taxing water heater. Added bonus: you don’t have to wash any dishes.

Things to Avoid while going through the Real Estate Loan Process

We’re often asked by my clients what are the “top things buyers should not do during the loan process.” Linda Hulberg at Western Bancorp put together this article with some of the most common mistakes made. Thanks, Linda, for those great words of acvice!

Here’s what Linda has to say:

Don’t go shopping for a car. If you must visit the showroom, at least don’t give anyone your social security number. This enables the dealer to check your credit. Each credit inquiry lowers your credit score even if you do not buy a car. Lenders are increasingly using credit scores to assist in mortgage credit decisions and to price an individual’s loan. High credit scores are good. Low scores aren’t.
Don’t respond in the affirmative to “you are pre-approved for a credit card” mailings. A credit inquiry will result with the same impact as above.
Don’t incur ANY new debt. This increases your debt-to-income ratio, reducing the amount you can borrow.
Don’t file for divorce. This is not advice from Dear Abby. Once you file for divorce, most lenders will not make a mortgage loan until the final decree, setting forth settlement terms, is recorded.
Don’t move money designated for down payment from one account to another. If you do, keep a detailed paper trail. Lenders may request it.
Don’t fail to keep records of any stock liquidation for down payment. Same reasoning as above.
Don’t change the source of your down payment. If your loan application states down payment is from sale of stock, do not simply deliver a cashier’s check into escrow from your bank account. Any change in source of down payment may require the loan to be underwritten again.
Don’t leave town without telling your loan agent and leaving a contact number. You may be needed for a decision or to provide additional documentation. And of course you will need to be available to sign loan documents.
Don’t quit or change your job. Lenders typically call your employer just before the loan records to verify you’re still there. If your employer says you are no longer there, the lender will stop the loan from recording.
Don’t forget to make the payments on any of your present loans or credit cards. This is obvious, but once in a while a buyer forgets, putting the loan (and escrow close) in jeopardy.
Don’t fail to inform your loan agent of any changes to the transaction. Last minute changes such as holdbacks, seller credits or termite work can create havoc with closing dates.
All is not lost if a buyer does a “don’t.” We can minimize or eliminate permanent damage to the transaction, even though delays and stress can occur.

It’s time to get your property on the market

Time to get started on Getting Organized

One of our New Year’s Resolutions is to organize our garage. In the months just before the holidays we were doing some clean-up, fix-up, painting inside the house. A lot of stuff was moved to the garage and a great deal is not going to be moved back in. With the new year, it’s time to address the mess. To get started, we found this video by home organizer Alejandra Costello who demonstrates her system for organizing items you wish to donate, sell, return, or exchange. You designate an area in the home, preferably near an exit, for the stuff you don’t want to forget to take out the door with you. What we really liked best about this video is that she includes tips for keeping your downsizing efforts on track. Hope you enjoy it.

After the “Fiscal Cliff” Deal – Ways to Make up for Higher Taxes

We read a post on Money Talk News that gave us some good ideas to make up for the new taxes and other costs that went up as we welcomed the New Year. We think you’ll probably find a lot of them useful too.


15 Ways to Make Up for Higher Taxes

By Linda Doell

All holidays have to end – including the payroll tax holiday. If you make $50,000 a year, increased Social Security withholding means you’ll take home $1,000 less in 2013 than you did last year. How can you make up the shortfall? Let’s count the ways.


Americans’ paychecks are getting smaller. That’s because the “fiscal cliff” bill didn’t extend the 2 percent Social Security tax holiday we’ve had since 2009. The payroll tax now returns to the more traditional 6.2 percent, up from the 4.2 percent we’ve been paying. As a result, if you earn $50,000 annually, you’ll see $1,000 more withheld from your paycheck this year – about $80 a month. If you earn $113,700 or more (the max income you pay Social Security taxes on), you’ll take home $2,274 less – close to $200 monthly.

But don’t fret just yet. Because with a little imagination and dash of determination, you might find ways to overcome that paycheck shrinkage. Examples:

Adjust your tax withholdings - If you typically get a big tax refund every year, try changing your tax withholdings to get more take-home pay. Just use the handy IRS withholding calculator to help you determine the proper number of exemptions you should be claiming. Once you’ve got it, give your employer a new W-4. But be careful: Not having enough withheld could mean writing a check in April, or worse, paying a penalty. And if you count on a windfall every April, realize it might not be there next year.

Ditch PMI - Private Mortgage Insurance, known as PMI, is mandatory insurance for many borrowers who put down less than 20 percent of the purchase price when they buy a home. But when you reach 20 percent equity – either by paying down your mortgage or appreciation – you might be able to stop paying it. The Federal Reserve Bank of San Francisco estimates the average homeowner could save between $250 and $1,200 per year by eliminating PMI. Unfortunately, you often have to jump through hoops to do it, like paying for an appraisal. But if you think you’re close to 20 percent equity, call your lender and ask about the process.

Double your deductibles - Raising what you’re willing to pay out of pocket on your insurance policies could lower your monthly cost substantially. A quick phone call to your insurance companies – home, health, and car – will tell you exactly how much, but expect to save 10 to 15 percent by raising your deductibles from $250 to $1,000.

NOTE from Team Patereau: We looked into this in the past. In order for us to save more than $20 on our premiums, we need to increase our deductibles to between $5,000 and $10,000. That’s just too much deductibe for us!

Track your spending - Financial sites like PowerWallet.com allow you to track your spending and know where your money goes every month. Use it to create a budget and stay on track. The site also tailors coupons and saving deals based on your purchase history.

NOTE from Team Patereau: If you use Quicken or QuickBooks, or any other bookkeeping system for your home or small business records, you can easily track your spending through that. There’s no need to get a different program or app.

Look for places to trim - Notice it’s trimming and not cutting. You don’t want to cut your spending so severely you feel like you’re being punished. Do that and you won’t stick to a spending plan. Do you like to stop for coffee on your way to work? Even cutting out one of those stops each week adds up. If you spend $5 each time you stop there, you’ll save $20 a month by cutting out one day a week. Instead of hitting the vending machines for a mid-afternoon snack, try bringing a snack from home instead. You’ll save the cost of the mark-up on prices for those vending machine goodies.

Start a change jar - At the end of the day, do you have loose change rattling about the bottom of your pockets or purse? Take that change and stow it in a jar on your dresser. You’ll never miss the change, and you’ll get a pleasant surprise at the end of a month when you see how the coins add up. If you’re more of an aggressive saver, try putting $1 and $5 bills in the jar as well. You may be less likely to spend if you have to “break” a larger bill.

Round up in your budget - When paying the monthly bills, round up in your check register to create ”secret savings.” Say you have an electric bill of $145 and a water bill of $60 – pay those amounts to the utility companies, but in your check register, mark them down as $150 and $75 respectively. You just saved $20. If you get into the habit of rounding up, there will be a cushion in your bank account for unexpected expenses.

NOTE from Team Patereau: Again, if you’re using a bookkeeping or check-writing system and you reconcile your bank statement to your record each month, this rounding-up system just won’t work.

Borrow or rent instead of buying - Before plunking down cash to buy a movie, book, video game, or album, ask yourself if you really need to own it. Local libraries, Redbox, Hulu, and elsewhere let you get movies, games, and books at prices ranging from free to cheap. Through sites like Amazon, iTunes, and eMusic, songs can be bought individually without having to buy an enire album. Subscription sites like Rhapsody also allow unlimited playback through their cloud storage programs.

Minimize your minutes - People use data more than voice on their phones these days. If you have more talk minutes than you need – especially if you have a rollover plan – consider downsizing to a cheaper plan.

Bury the landline - Maybe it’s time to unplug that landline for good. If your cell phone isn’t enough, there’s Skype (http://www.skype.com/), Google Voice (http://www.google.com/voice) , or magicJack (http://www.magicjack.com/).

NOTE from Team Patereau: We did this years ago and haven’t ever missed it. However, households with young children who don’t have their own cell phones need to have a phone wherever their children are and taking out the land line may not be an option.

Find beauty on a budget - In our TV news story 10 Tips to Save on Makeup, we interviewed a makeup artist who said many of the items at Walgreens were just as good as their department store cousins at a fraction of the price. You can get the last bit of mascara by heating it with your hair dryer or warm water. You can also extend the life of your liquid foundation and concealer by using half as much and mixing it with a dab of facial lotion.

NOTE from Team Patereau: Caution! Make-up, particularly for the eyes, should be replaced regularly – dermatologists recommend as often as once a quarter. There may be negative consequences (like eye infections, or skin and eye irritation) for cutting too many corners.

Work your way out of the gym membership – The average gym membership is now about $42/month. Exercise your right to keep in shape at home. Join a free site like Livestrong or SparkPeople to plan exercise activities, plus track your calories and diet. You can also look for free or cheap used exercise equipment on Craigslist or Freecycle.

NOTE from Team Patereau: How about an exercise partner. You don’t have to have a gym, you can do it in a garage, or the back yard. You can meet in a public park. Exercising and spending time with a friend doubles up your pleasure and cuts in half your pain.

Pay less for clothes - Clothes are something that can not only help you spend less – you can add to your bank account by selling the stuff you no longer use. Go through your closets and remove everything you haven’t worn in a year. Now, take them all to a local consignment shop and put them up for sale. What they don’t take, drop off at a charity store and get a tax deduction. And if that’s not enough, here are 23 Tips to Save on Clothing.

Take a vacation from high travel costs - Staying local during your time off is one way to save big. Plan some weekend getaways and day trips instead of extended vacations – you’ll get to see and do more, more often, for less.

Find food deals that won’t take a bite out of your budget - If you’ve got the space, try to stock up on nonperishable groceries at wholesale or when there are buy-one-get-one-free deals. You get the best prices this way and make fewer trips to the store, which saves on gas. When you’re at the store, try more generics. You can also check for nearby salvage grocery stores. There are dozens of ways to save on food. Don’t believe it? Check out 28 Tasty Tips to Save on Food.

Use some of these tips, and in no time, you won’t be feeling that cut in take-home pay. And if you have any tricks of your own to share, don’t be shy.