I thought we were in cruise control, fully optimized with our recurring, monthly bills. Until I got an email from our energy supplier.
We’re in Philly with PECO as our energy utility/distributor. About a year ago, just pre-FI for us, I made the switch to a renewable energy supplier, sourcing all wind-powered energy. I can’t remember the intro rate, but it was a good rate – cheaper than the traditional energy providers, and I strongly believe in supporting renewable energy. Plus, they had an incentive of an annual rebate of 3% of your annual charges back in an account credit. If I did my math right, that’s about a $60 credit we’ll get. This rebate email is what prompted my energy bill digging. The email didn’t state the amount of credit was I getting, just that it was there to claim. There was no amount or timeframe. This lack of info was annoying. So, I dug in:
Our bill has been steadily rising. They don’t provide the KWH rate for each billing period (ugh), but I see we’re paying a bit more and not always when we’re using more energy.
I’m pretty sure that whatever intro rate I had has since gone up; I’m going to take my 3% credit and make a switch to a lower cost supplier that is also renewable. You can do this in PA!
Our energy use is rising.
The Pennsylvania Public Utility Commission has a program called PA Power Switch which allows electric utility customers to choose from a wide selection of energy providers. They vary by proximity, variable versus fixed price, term length, contract fees, and percent that’s renewable energy. This sounds confusing, but it’s not. It’s a very user-friendly search tool and even I understand it.
Here’s where I’ve landed:
Our Current with a Renewable Supplier: 0.1429 per kWh
Cheapest Traditional Energy Option: 0.0585 per kWh
Cheapest Renewable Energy Option: 0.0725 per kWh with 24 month term
Because of my love for this planet, I’m going to support the renewable energy option that offers a kWh rate of 50% lower than my current. (I don’t mind the 24-month term.)
And the PECO site also offers great energy usage analysis and some easy energy savings tips. We’re are doing the following immediately:
Cold water laundry – my boys stink, I feel hot water is necessary, but I’ll switch to cold and see
Turn off power strips – why do we leave WiFi and the other office components on all day when we’re not home?!
Adjust TV brightness – apparently the factory default is a “showroom” setting. We have it on 0-2 hours per day, so not sure this will have much of an impact.
Tell everyone to turn off the lights when they leave the room!
So, we’re lowering our usage and lowering our rate. It will be very interesting to see how much we actually save per bill. Full transparency: Our last bill was $175 with an average daily use of 25.8 kWh. I will update in a month!
Building on the strong foundation we set in 2017, here are our goals for 2018:
#1: Debt reduction. We made some great strides in 2017 by simply organizing our finances and recognizing that we need to be more aggressive and focused on debt reduction. This will, of course, continue …
#2: Travel. We haven’t traveled much lately and we NEED to! This is a no brainer: open a Chase rewards card. Actually, I already got mine and my husband will get his soon. We went with the Chase Sapphire. I’m not sure yet if we’ll get as aggressive as the chase gauntlet just yet. We’re thinking a family vacation to the Bahamas … perhaps that’s because it’s freezing cold right now.
#3: Max out all pre-tax contributions (401k, HSA, FSA).
#4: Increase college savings. Keep 529s at $100 per month and contribute an additional $100 per month into another, separate investment account or Roth IRA for each child.
#5: Save (more) on wireless phone bills. Change DH from Verizon to a Monthly Shared plan with Total Wireless for $60 per month, saving $67 per month. That’s over $800 per year. Cha-ching!
The debt reduction is the biggest nut: credit cards, HELOC, two car loans and three mortgages. It’s daunting, but it’s there and we’re going to make it disappear. POOF!
We’re about 2 months into this journey to financial independence and we had an awesome month in June! We knocked out some serious budgeting, reduced bills where we could and made a serious debt reduction plan.
The fun stuff:
We’re tracking and budgeting with Every Dollar. I can’t say it’s any better than Mint because I haven’t used Mint as heavily. And now I’m too deep into it with Every Dollar to quit. From May to June we spent $7,000 less … WHAT? How is that possible? Home improvements in May: kitchen table, plumber, etc. We’ve only been in this old house a year, so home improvements are definitely a part of the budget for now. (OK. I spent too much on that table, but I love it and we’ll have it forever.) And we had to pay upfront for summer childcare for two kids – this means we won’t have childcare come out of our budget for 3 months. Despite those large expenses, we still came out of June having spent less on “stuff” and more on debt and savings.
Cutting R’s mobile phone data – using wireless where possible (home, office) and not letting the kids use it – cut the bill in half! From $104 to $49 per month! DING DING DING!
Credit card payments – the first one we’re paying off received weekly payments last month. Being our first full month, we weren’t sure what was going to shake out and where. Happily, we were able to make 3 extra payments! That debt pay off schedule is moving on up like … the Jeffersons. (I had to.)
Account consolidation: Definitely a work in progress. We transferred several 401k and IRA accounts from all over the place into Vanguard accounts. Phew. There were some seriously high expenses that I never knew to look for with other institutions.
With that … my fail. July has just begun and already I’m an FI failure! I spent way too much on a frame. That’s right. A frame. It’s a beautiful, old blueprint of our house and it was screaming to get out of the dusty tube and into a frame on the wall. And the architect was the great uncle of a good friend. That same friend who’s married to the person that introduced us. Pretty wild, right? But it’s really big, so … yeah, I’m justifying another big purchase. I promise I’ll be good for the rest of the month. Bring lunch every day, take the train vs drive and park. And perhaps less wine with dinner.