Money Management

Summer often means big utility bills, but there are ways you can stay cool while keeping AC costs down. Check out these options. 

The summer season is upon us, which means it’s time for many people to crank up the AC and get ready for warm days. Unfortunately, running the air conditioner all summer can do a real number on your checking account — especially with energy costs up dramatically for many households in recent years.

If you’re worried that high AC bills will force you to tap into your savings account, consider trying out some of these tips to keep cool this summer without spending a fortune.

1. Change your air filters

If you haven’t recently changed your air filters, it’s time to do it now before your AC goes into high gear. Replacing clogged filters can single-handedly cut your air conditioning costs by as much as 5% to 15%. That’s a huge savings, especially if you are paying more per kilowatt hour these days than you did in summers past.

2. Consider investing in a ceiling fan

Ceiling fans can significantly reduce the amount of air conditioning you need to use. Fans require about 1/60th the level of energy that an air conditioner uses. Plus, since they can pull hot air away from you, you can turn up the thermostat on the air conditioner and still feel comfortable.

Ceiling fans can work especially well to allow you to stay cool without a lot of air conditioning, and running one can save you as much as 40% on electricity costs. But if you don’t have a ceiling fan and don’t want to pay to install them, an inexpensive standing fan can also make a world of difference.

3. Use your windows wisely

During the day, blackout curtains on your windows could help keep the warm sun from entering your home and forcing your air conditioner to work harder. This is especially important for windows that face the sun at the time.

If it cools off during the evening hours, open those blinds and crank the windows open — especially if you can do so in multiple rooms to create a cross breeze. You may be able to avoid running the AC altogether during evening hours if you can open your windows during that time.

4. Spend time outside

When possible, try to spend as much of your day outdoors as you can. You can set up a sprinkler for your kids (or yourself) and find a spot in the shade to sit. When you leave your home for a day outdoors, crank the air conditioning thermostat up a few degrees so you don’t have to cool your house as much during that time.

As a bonus, when you come inside from a warm day, your house will feel cooler and more comfortable even if you don’t have the thermostat set as low.

5. Create some shade

Some strategically placed plants at your home can both help to keep you cooler outside and can reduce the amount of sun coming into your house and heating it up. You can also plant a tree over your outdoor air conditioning unit, which could make the unit run as much as 10% more efficiently.

By taking these five steps, you may be able to keep your cool this summer while leaving as much money as possible in your wallet.

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Just because you’ve been an investor for many years doesn’t mean you won’t stumble. Read on for some pitfalls to avoid. 

When you’re new to investing, it’s easy enough to make some mistakes that cause you to lose money. But you might assume that once you’ve been investing in your brokerage account for five years, 10 years, or longer, you’re pretty much immune to those blunders.

Unfortunately, that’s not necessarily the case. Here are a few risks even the most experienced investors risk falling victim to.

1. Timing the market

Your goal as an investor is generally to buy at a low and sell at a high. And so to that end, you may be tempted to time the market — that is, to try to capitalize on downturns by buying stocks when you think they’ve reached their lowest point.

The problem with this approach is that it’s hard to determine when stocks have really hit a low. And if you force yourself to wait for the lowest price, you might miss out on the opportunity to snag a good price, even if it’s not the best price.

That’s why a much better approach to investing is dollar-cost averaging. This system has you investing in specific assets at preset intervals, regardless of market conditions. It’s a good way to avoid the market timing trap and miss out on the opportunity to profit on stocks in the long run.

Here’s how it might work. Let’s say that based on your income, you’re able to free up $100 a month for investing purposes. Rather than try to invest at a low by checking the value of the S&P 500 index every day, you’d instead commit to buying $100 worth of an S&P 500 ETF on the 15th of the month.

Some months, that’ll likely mean buying at a high. Other months, it’ll likely mean buying at a low. Over time, you should come out ahead financially by snagging more shares when prices are lower and avoiding market noise that might otherwise keep you from investing. Time in the market is more important than timing the market.

2. Panic selling when things go wrong

If you’ve been investing for years, then you’ve probably experienced your share of market volatility. But still, it’s hard to control your emotions when you see the value of your portfolio plummet.

One thing you don’t want to do, however, is sell investments at a loss the moment their value declines. Doing so only guarantees that you’ll lock in that loss officially, whereas waiting things out could make it so you’re not losing money at all.

A good way to avoid panic selling? Remind yourself what you’re investing for. If you’re 45 years old and are inclined to sell stocks in a panic, but you have those stocks earmarked for your retirement, you may want to remind yourself that there are many years for your portfolio to stage a recovery.

3. Checking your balance too frequently or infrequently

Checking your brokerage account balance every day could end up being a pretty bad thing for your mental health. That’s because stock values have the potential to shift dramatically overnight. And if you check in too often, you may be more likely to sell at a loss in a panic.

In fact, checking your portfolio once a quarter instead of once a day could reduce your chance of seeing a moderate loss of 2% or more from 25% to 12%, according to Betterment. And seeing fewer losses could lead to less impulse selling.

At the same time, you also don’t want to ignore your portfolio for months on end. It’s possible for the value of your investments to shift over time, so checking in once a quarter could help you keep tabs on your holdings and make strategic decisions around rebalancing.

Being a long-term investor won’t guarantee that you’ll never make a bad call when it comes to your portfolio. But try to do your best to avoid these mistakes, as they could prove costly.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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I don’t want to be surprised by any monthly housing costs, and home listings and mortgage calculators don’t always tell the whole story. Find out more. 

I’m currently in the market for a new home, and I want to make sure the house I buy is not a financial burden. This means I’m looking carefully at the mortgage loan costs I’ll have to pay after I make my purchase. I can estimate those costs using a mortgage calculator once I know the price of the home.

I’m also taking a look at things like property taxes and insurance, which are important added costs as well. Fortunately, those are usually listed in home listings so I can get an idea of what I’ll have to spend.

In addition to these expenses, though, there are some other costs I want to take into account. It can be harder to estimate those, so I make a point to ask about them when I visit open houses. Here’s what they are.

1. Lawn maintenance

I don’t have the time or inclination to mow my own lawn, but I want to make sure my yard looks good. With most of the houses I am interested in buying, the property owners use lawn services to maintain their yards. As a result, I always ask at open houses how much lawn maintenance costs.

The price can vary pretty substantially depending on factors like how big the yard is, how easy it is to access, and whether it needs regular fertilization or if the grass tends to thrive. But, with the nationwide average cost for lawn care running around $124 per visit, per Bob Vila, this is definitely a cost I want to make sure I factor in when deciding if a home is affordable.

2. Pool care

Most of the homes I am looking at also have swimming pools. I know pools can be expensive, so I want to find out how much the current homeowner spends each year. Usually, people use pool services so they can just quote a flat monthly rate to me.

But, sometimes people take care of the pools themselves so I can get an estimate of how much chemicals cost. It’s helpful for me to know this too, as I can make sure there is room in my budget for a professional service if I need one.

3. Utilities costs

There is wide variation in how much utilities cost from one house to another, as this can be affected by factors like how high the ceilings in the home are, how good the insulation is, and how much room there is to heat and cool. If the home has upgraded energy-efficient appliances, it can also make a big difference.

I don’t want to be caught off guard by buying a home that happens to have unusually expensive utilities for some reason. So, I always ask if the current homeowners can provide an estimate of what their monthly utility bills are in the home.

4. HOA dues

Finally, the last big thing I want to find out about is whether there are homeowners association dues. A lot of times, the home listing will specify this, but I just want clarification on what has to be paid and how. For example, in some homes, you get a discount if you pay annually while in other locations the only options have been to pay the full price either monthly or quarterly.

By asking about these four costs, I can get a fuller picture of what my total monthly expenses would be if I bought the home, rather than just the mortgage loan payment. This allows me to make a better decision about whether it will be affordable for me over the long haul.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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