Installing a pool in your backyard or turning your basement into a home theater might sound like enticing projects, but they won’t help you save money in the long run and they may or may not even increase the resale value of your home. Many homeowners are surprised to hear that a few small upgrades could potentially save them thousands a year. Here is a quick look at three home investments that have a proven ROI.
Smart Thermostat
Installing a smart thermostat can be completed in a matter of minutes, and that small gadget is more valuable than most people realize. At the very least, a smart thermostat is going to turn off your heater and cooler when no one is home. You can also have it automatically adjust the temperature when your family goes to sleep. As an added bonus, these devices can easily be controlled with mobile apps. Just before you get home from work, you can quickly adjust the temperature inside your home with your smartphone. A cutting-edge smart thermostat could reduce your heating and cooling costs by as much as 15 percent.
Install High-Efficiency Light Bulbs
Older incandescent light bulbs are incredibly inefficient because most of the energy that they use is turned into heat. Then along came circular fluorescent light bulbs (CFL) which were more efficient but can be toxic if broken. Third generation bulbs are now made from light emitting diodes (LED’s).
Comparisons between Traditional Incandescents, Halogen Incandescents, CFLs, and LEDs
| 60W Traditional Incandescent | 43W Energy-Saving Incandescent | 15W CFL | 12W LED | |
Energy Saved (%) | ~25% | ~75% | ~75%-80% | |
| Annual Energy Cost* | $4.80 | $3.50 | $1.20 | $1.00 |
| Bulb Life | 1000 hrs | 1 to 3000 hrs | 10,000 hrs | 25,000 hrs |
*Based on 2 hrs/day of usage, an electricity rate of 11 cents per kilowatt-hour, shown in U.S. dollars. Source: Energy.gov
If you have a small bathroom or closet with multiple bulbs, then simply turning on the lights could raise the temperature by a few degrees. With LED bulbs, almost all of the energy is turned into light, and that can save you 75-80%. Plus LED’s last much longer. Replacing all of the old bulbs in your home with LED bulbs only takes a few minutes, and the newer bulbs are going to last thousands of hours longer.
Tankless Water Heater
There are quite a few reasons why many homeowners are now transitioning from traditional water heaters to tankless water heaters. A tankless water heater only heats up the water as it is being used, and that means you won’t waste money on keeping a huge tank of water warm at all times. Tankless water heaters can also produce an unlimited supply of warm water. You aren’t going to run out of warm water if multiple family members are taking showers at the same time. An experienced plumber should be able to install a tankless water heater in a day or two, and these devices are designed to last for decades.
In addition to these few upgrades, you might also want to consider improving your home’s insulation if you would like to save some money. Blowing in some cellulose insulation and closing up small openings could significantly reduce your energy bills during heat waves and winter storms.
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