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David Bach The Automatic Millionaire

David Bach, The Automatic Millionaire

Readers Turn Green, Save Same

by David Bach

Very Good (178 Ratings)
3.1460646/5
Posted on Monday, April 7, 2008, 12:00AM

In my last column, I posted a sneak peek at my new book "Go Green, Live Rich." Thanks to everyone who took the time to email stories on ways you've gone green and saved some cash in the process. As promised, I'll be giving away signed copies of the book to the 10 best.

Your stories were really fun to read, and serve as proof that you can save money while doing the right thing for the environment. What follows is real advice from real people who are experiencing real results.

Be Energy Smart

Our homes account for more than 20 percent of the national energy demand, and produce more than 20 percent of the nation's carbon dioxide emissions. In fact, according to the Alliance to Save Energy, the average home emits twice as much CO2 as the average car.

In June, I wrote an entire column on eco-friendly ways to cut home energy costs. But Mary E. from St. Cloud, Minn., wrote in with a great tip worth sharing.

Mary joined the Savers Switch program through her local energy provider. This program allows the company to cycle central air conditioning on and off at 20-minute intervals during peak hours. This preserves natural resources and keeps electricity rates low, allowing Mary to save 15 percent on cooling costs between June and September.

Take Action: Do you know what eco-friendly, cost-saving programs your local energy company offers? Log on to their website or call them and ask. New programs like Savers Switch are sprouting up nationwide. Seek them out for a nice payoff.

Get Rid of a Car

Consider this: There are roughly two cars on the road for every household in the country. The average annual cost of just one of those cars -- including gas, insurance, maintenance, registration, and depreciation -- is $8,580. So do the math. If your household income is $50,000 and you own two cars, you're working four months out of the year just to pay for them.

Mike K. wrote in to say he's saving over $400 a year by not keeping his spare truck around. Although convenient for occasional hauling, he found it just wasn't worth what he was paying.

If every family in the United States gave up one car, it would reduce the amount of carbon dioxide emitted by around 413 billion pounds a year. And that doesn't include the decrease in other types of pollutants from car exhaust, which can cause health problems like asthma and emphysema and generally make the air worse to breathe.

Take Action: For times when you do need a second car, sign up for a car-share program. Zipcar is a great option in 48 cities. Reserving a car for six two-hour slots and two four-hour slots each week costs only $162 a month. Or search other car-sharing programs at CarSharing.net.

Break the Bottled Water Habit

Michelle W. from Rutherford, N.J., wrote in with one of my favorite tips: "Nix the plastic water bottles." She's absolutely right. A 2007 Fast Company article by Charles Fishman reports that North Americans spent $15 billion on bottled water in 2006.

I estimate that if you buy a 20-ounce bottle of water every day for $1.39, you could save a whopping $500 a year simply by breaking the habit. Many of you are familiar with "the Latte Factor," a phrase I coined as a metaphor for all the little tings we spend money on over the course of a day without giving it much thought. Buying bottled water fits into that category. In my book I refer to this as the Litter Factor, because 9 out of 10 plastic water bottles are simply thrown away, overloading our landfills and blowing into our waterways.

Michelle uses a simple filtration system like Brita to cut back on her need to purchase bottled water. She also carries her own coffee mug, and even found that Starbucks offers a discount when filling it up!

Take Action: The newest generation of reusable water bottles, made from lightweight aluminum, are available from SIGG.

Be an Energy Star

Caroline A. from Wilmington, N.C., shared with me her happy news that she's just getting ready to move into her new home, for which she's purchased all new appliances. "I did my homework and was a smart shopper," she writes, "I've chosen only to go with Energy Star appliances and it feels good knowing that not only will I be using less energy but I'll save money on my utility bill as well."

Caroline is 100 percent right. According to its website, in 2006 Energy Star has already helped Americans save $14 billion on utility bills. We've also saved enough energy by using Energy Star appliances to avoid greenhouse gas emissions equivalent to that from 25 million cars.

Take Action: If you're in the market for a new appliance, make sure it has the Energy Star label.

Next year, federal law will require television stations to broadcast only in digital format. As a result, many people will upgrade to flat-panel TV sets. As Jeff and Shannon M. from Apopke, Fla., point out, you'll want to think twice before breaking the bank to buy a high-definition plasma-screen model.

These can use nearly twice as much energy as their LCD-screen counterparts, and more than three times as much as the standard CRT sets. Televisions account for 4 percent of our national energy use, and with more plasma models appearing in living rooms, that number could reach 8 percent before the decade ends. So if you upgrade to flat-panel, stick with an LCD model.

Grow Your Own

I heard from quite a few readers on this topic, so I decided to include it. Our food travels an average of 1,500 to 2,500 miles to reach our plates. That's a lot of gas and fumes -- not to mention fossil fuels for pesticides, tractors, processing, storage, and packaging.

Instead, grow your own fruits and vegetables and reap the rewards. Like Ken E. from Evansville, Wis., you'll save money, know exactly how your food was grown and what went into it, and connect with nature. Ken and his family will enjoy a summer filled with fresh fruits and vegetables that he's paid almost nothing for, since he started his garden indoors with seeds from last year's plants.

Jeff and Shannon M. from Apopka, Fla., grow five different vegetables in their yard, and are looking forward to partnering with friends in order to share produce and have even more variety.

Take Action: Some great resources for starting your own vegetable garden can be found at BackyardGardener.com and The Garden Helper. If you live in an apartment, look into container gardening at ContainerGardeningTips.com. Lastly, find a farmer's market in your area for locally grown food at LocalHarvest.

Reconnecting to Riches

Thanks again for all the great success stories. In closing, I'd like to leave you with a comment I received from Jeff and Shannon M. that sums up the philosophy of "Go Green, Live Rich" quite nicely:

"We are very blessed to have an abundance of amenities and comforts in our everyday lives. It is our understanding that we are called to live simply so that others can simply live. Our overconsumption has consequences that affect people around the world living in poverty. When we consider others, it no longer becomes a burden to simplify, it becomes a passion.

"Conservation equals healthier living for you and for future generations, and it puts more money in your hands to sow into this great big world around us. Something happens when we disconnect from our stuff and some of the unnecessary comforts -- we reconnect with living."

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76 Comments

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  • Yahoo! Finance User - Tuesday, April 8, 2008, 12:19AM ET  Report Abuse

    • Overall: 2/5

    "If every family in the United States gave up one car, it would reduce the amount of carbon dioxide emitted by around 413 billion pounds a year." ---- I have 3 cars, but getting rid of one or more wouldn't change how much I drive or the amount of emissions.

  • Ken - Tuesday, April 8, 2008, 2:58AM ET  Report Abuse

    • Overall: 1/5

    With enough conservation, we could diet our way to growing our economy smaller, so we can sustain feel good policies based on subjective carbon footprint conjecture. Nuclear is not the answer because it feels bad and big oil is evil because I said so. Let us bleed our over consumption guilt to the collective shame of others so we can repent as a citizen of the world. Excuse me as I go flush my gift to the world.

  • Martha - Tuesday, April 8, 2008, 6:50AM ET  Report Abuse

    • Overall: 4/5

    A note on shopping for Energy Star appliances from experience: In most households annual energy consumption is higher for the refrigerator than for anything else after heat and possibly hot water production. Use the Energy Star website to generate a list of specific manufacturer model numbers for use in shopping. Then be prepared to wait for that model to be special ordered. When I purchased my GE Energy Star fridge a few years ago, the standards and list had been recently updated. When I took my list to stores, I found that only the prior-standard models were available "on the floor". I was willing to order and wait (about 3 months) to get the more efficient model AT THE EXACT SAME PRICE as the older models. That refrigerator has reduced my energy costs by almost as much as the net-metering saving on my little 1kW grid-tied solar PV system at MUCH less initial cost. Oh and skip the ice maker. It's not only a potential health risk (crud in the water line) but is also the number one failure point requiring added costs for service. A refrigerator should last at least 20 years and uses very old technology. (Energy savings come largely from insulation.) No point in making it more complicated than it has to be for its main function.

  • Yahoo! Finance User - Tuesday, April 8, 2008, 7:57AM ET  Report Abuse

    • Overall: 4/5

    Two other considerations for every reader is 1.) Consider swapping your incandescent light bulbs for the compact fluorescent light bulbs (CFL) as one 60 watt CFL produces the same light/lumens as an ordinary 60 watt bulb but generates only 13 watts to do so - in essence you could run more than four CFLs bulbs for the price of one ordinary bulb. (we have replaced all of them in our home and it has reduced our electricity bill); and 2.) Consider the amount of energy that an electric device consumes even when powered off, yes, while off – it is referred to as “phantom load.” We purchased an inexpensive utility usage monitor called “Kill A Watt” that allows you to measure the electrical consumption for your electrical devices and it was an eye opener – our television drawn 174 Watts when on, but get this, it draws 30 Watts when in the off position – that is the same as having a 60 watt light bulb on for 12 hours a day, for doing nothing other than standing by in a ready state so that it turns on faster when powered on. We have moved it to a power strip with a switch and only turn it on when we are watching in the evening. We also discovered that a second refrigerator in our basement was drawing 329 Watts when running and 194 Watts when it cycled off (but still plugged in) and we have reduced the amount of foods that we keep in it and are ready to disconnect it all together. Lastly, we measured the coffee maker to see what it consumed and found that it runs at 880 Watts when it is brewing and keeping the coffee pot warm and that is equal to almost fifteen 60 watt light bulbs running for every minute that it is powered on. We use it for about an hour a day now and unplug it when done Think about that the next time you are pouring a cup and perhaps a light bulb will go off over your head that you to can do some simple things in your own home and office to be more green and save some green while doing so.

  • Yahoo! Finance User - Tuesday, April 8, 2008, 8:31AM ET  Report Abuse

    • Overall: 5/5

    Where I live, in the US southwest, pecan trees are very popular. People don't seem to water or fertilize them and they still put out pecans like crazy.

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Read David Bach's latest book, Go Green, Live Rich: 50 Simple Ways to Save the Earth and Get Rich Trying. Order today!

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