Gas Prices have increased 75 cents per gallon from their levels just one year ago. A recent Lundberg survey found self-serve regular is averaging $3.57. Here are a few friendly reminders to ease the pain at the pump:

Drive Less
Consider walking, biking, or even public transportation to places that you previously thought to far away.

Find Cheapest Gar Near You
Gas Buddy is a great resource for finding the cheapest gas nearby. The cheapest pump near me is $3.19 per gallon, much lower than the national average.

Buy A More Fuel Efficient Vehicle
According to http://www.fueleconomy.gov, the Toyota Prius gets up to 51 MPG.

Keep it Under 60 MPH
Gas mileage begins to rapidly decrease once your speed increase above 60 MPH.

Combine Errands
If you need groceries and your dry cleaning, why not coordinate both errands during the same trip? It will save you money, and time.

Reduce Weight
If you have extra weight in the trunk, get rid of it. Each 100 pounds can reduce gas mileage up to 2%.

What tips do you have?

Home Maintenance

I’ve written a post about preventative maintenance, but I never actually presented concrete figures regarding just how much these costs can be. This email from my dad the other day was quite an eye opener.

Hey, just thought I would let you and [your wife] know, we got a programmable thermostat. I think we are really going to like it, but it sure was expensive. It was a little over $5,000, but I figure it was worth it as you and [your wife] should be able to sleep at night without the compressor on the old unit sounding like a diesel truck coming through the window. Oh, I forgot to mention we have a new heat pump. The old one finally gave out after 16 years. The really loud noise was a sign that it was about to go kaput and then it did. Anyway, we got it installed right before this cold front comes through tonight. So, we got lucky as far as the installation and the weather was concerned. Miss you both and consider it an invitation for ya’ll to come experience the quietness of the new heat pump.

Ouch. Since moving into our first home in November 2009, we’ve been putting away $100 per month for maintenance costs. So far, that account has covered our maintenance problems, but $5,000 would tap out that account about 5 fold at this point.

A common piece of advise is to plan to spend about 1% of your home’s value on maintenance costs each year. For example, if your home’s value is $500,000, you should plan to spend about $5,000 per year in maintenance costs. This is obviously just a starting point since $500,000 will go much further in some real estate markets than others.

From my personal experience, we haven’t spent anywhere near the 1% of our home’s value. But, we’ve only been here one year. My dad’s email has me considering upping our monthly contribution to our maintenance fund.

Time

Time is money. We chose to move into an older home that was built in 1964. We knew going into the purchase that we would have to spend more time updating and maintaining that we would if purchasing a new home. We new that we would have to paint the interior and exterior, do some major backyard clean-up, and tons of “minor” updates such as replacing the electrical outlets near our kitchen and bathroom sinks with outlets that “test” and “reset” buttons and installing ceiling fans. Don’t understimate how much time it takes to maintain a home of your own.

Lawn Care

Even if you love the outdoors, you probably have a full time job, maybe a wife and kids, and even a social life you would like to maintain. When you look up at the end of the day, you may realize that you just don’t have the time to go rake the leaves or mow the yard. Depending on the size of your lawn, you could end up paying $100 each month.

What are some other hidden costs you have encountered after becoming a home owner?

Winter doesn’t technically arrive until December 21. However, the bitter cold, rain, snow, and sleet will arrive well ahead of schedule. Take advantage of these 10 tips now to help reduce your energy bill over the next several months.

1. Reverse Ceiling Fans

As we are all aware, heat rises. Take advantage of your knowledge and move the switch on your ceiling fan so that the blades turn clockwise. This will circulate the warm air trapped at the ceiling back down through the bottom of the room. Cost savings? About 10% of your normal heating costs.

2. Avoid Drafts

According to the US Department of Energy, drafts can waste 5 to 30% of your energy use. Lay a rolled up towel at the bottom of each door for a quick and easy fix. Even better, take advantage of caulking and weatherstripping and apply around windows, corners, chimneys, or where pipes or wires exit the house.

3. Use an Energy Monitor

These monitors measure your home’s energy use in real time and project how much your monthly bill will be based on your current usage. Some energy monitor manufacturers claim that you will save 10 – 20% on your electric bill by implementing their device. Take a look here for more information to help you pick the best monitor for you.

4. Buy a Programmable Thermostat

Heating and cooling account for a significant portion of our monthly bills, and it doesn’t make sense to pay for what you aren’t using when you aren’t home. We try to remember and turn the heat down before we leave the house in the morning, but I’d say we remember about half the time. With a programmable thermostat, this is no longer a problem.

5. Bundle Up

Studies show that for every degree that you lower your thermostat, you will save 1 – 3% on your heating bill. Program your thermostat a few degrees cooler this winter and put on your sweater and long underwear.

6. Install Storm Doors and Windows

Increase energy efficiency by 45% by simply installing storm doors and windows. These windows will seal drafts and reduce airflow between your house and the great outdoors.

7. Turn Down Your Water Heater

Common advice is to set your water heater to 140 degrees F. However, by reducing your water heater temperature to 120 degrees F, you will save 5 – 10% of your water heating costs. You probably won’t even notice the difference. Most homes don’t need that level and end up paying for sitting water as it cools. Also consider tossing a hot water blanket around your heater.

Even better, go tankless. Upfront costs are higher, but for homes that use 41 gallons or less of hot water per day, a tankless water heater is 24 – 34% more energy efficient than a standard heater. The more hot water your home consumes, the greater the savings.

8. Insulate hot water pipes

Insulating hot water pipes will reduce heat loss and raise water temperature by 2 – 4%. Hot water will also reach the faucet quicker which will reduce your water consumption significantly over time. On gas water heaters, keep insulation at least 6 inches from the flue, and use at least 1-inch thick fiberglass pipe-wrap without a facing. Use wire or aluminum foil tape to secure the insulation to the pipe.

9. Seal your heating and cooling ducts

Sealing and insulating ducts can improve the efficiency of your heating and cooling system by as much as 20%. Start by sealing ducts that run through the attic, crawlspace, unheated basement, or garage. Use duct sealant or metal-backed tape to seal the seams and connections of ducts. After sealing, wrap them in insulation to keep them from getting hot in the summer and cool in the winter.

10. Take advantage of tax credits

Don’t forget to take advantage of the many tax credits currently available for energy efficiency improvements. For 2009 and 2010, take advantage of credits available for windows and doors, insulation, roofs, HVAC, Water Heaters, and Biomass stoves. There are tax credits available through 2016 for Geothermal Heat Pumps, Solar Panels, Solar Water Heaters, Small Wind Energy Systems, and Fuel Cells.

What other tips will save money during the upcoming winter?

If you are a frequent reader of The Broke M.B.A., you are well aware that we will soon close on our first home. Actually, less than two weeks from today, we’ll be proud homeowners. I’ve posted several articles under the First Time Home Buyer’s Series category if you are interested in more of the details. After the inspection, our home inspector left some information regarding what every new owner should do immediately upon taking ownership:

1. Consider changing the locks on all exterior entrances.

2. Check that all windows and doors are secure. Security rods can be added sliding windows and doors. Consideration could also be give to a security system.

3. Install smoke detectors on each level of the home. Ensure that there is a smoke detector inside and outside all sleeping areas. Replace batteries on any existing smoke detectors and test them.

4. Create a plan of action in the event of a fire in your home. Ensure that there is an operable window or door in every room of the house. Consult with your local fire department regarding fire safety issues and what to do in the event of a fire.

5. Examine driveways and walkways for trip hazards. Undertake repairs where necessary.

6. Examine the interior of your home for trip hazards. Loose or torn carpeting and flooring should be repaired.

7. Undertake improvements to all stairways, decks, porches and landings where there is a risk of falling or stumbling.

8. Review your home inspection report for any items that require immediate improvement or further investigation. Address these areas as required.

9. Install rain caps and vermin screens on all chimney flues, as necessary.

10. Investigate the location of the main shut-offs for the plumbing, heating and electrical systems.

Although we’ve heard it many times, nothing could be truer than the old cliche, “an ounce of prevention is worth a pound of cure.” Preventative maintenance is the best and cheapest way to keep your house in great shape. It also reduces the risk of unexpected repairs and improves the odds of selling your house at fair market value when the time comes.

With this in mind, below are some suggested maintenance items to review on a periodic basis. Most, if not all of these items are things that you can do quickly yourself.  If left unattended for too long, many will result in having to call a professional.

Monthly:

• Check that all fire extinguishers are fully charged.
• Examine heating/cooling air filters and replace or clean as necessary
• Clean gutters and downspouts.
• Ensure that downspouts are secure, and that the discharge of the downspouts is appropriate.
• Carefully inspect the condition of shower enclosures.  Repair or replace deteriorated grout and caulking.  Ensure that water is not escaping the enclosure during showering.
• Repair or replace loose faucets or shower heads.
• Secure loose toilets, or repair flush mechanisms that become troublesome.

Spring and Fall:

• Examine the roof for evidence of damage to the roof coverings, flashings and chimneys.
• Look in the attic (if accessible) to ensure that roof vents are not obstructed.  Check for evidence of leakage, condensation or vermin activity. Level out insulation if needed.
• Trim back tree branches and shrubs to ensure that they are not in contact with the house and roof.  Contact local elctric company if trees rest on power lines.
• Inspect the exterior walls and foundation for evidence of damage, cracking or movement.  Watch for birds nest or other vermin or insect activity.
• Survey the basement and/or crawl space for evidence of moisture seepage.
• Ensure that the grade of the land around the house encourages water flow away from the foundation.
• Inspect all driveways, walkways, decks, porches and landscape components for evidence of deterioration, movement or safety hazards.
• Clean windows and test their operation.  Improve caulking and weather-stripping as necessary.  Watch for evidence of rot in wood window frames and door frames.  Paint and repair window sills and frames as necessary.
• Test all ground fault circuit interrupter (GCFI) devices, as identified in the inspection report.
• Insulate/cover hose bibs in the fall, if below freezing temperatures are anticipated.
• Test the overhead garage door opener to ensure that the auto-revers mechanism is responding appropriately.  Clean and lubricate hinges, rollers and tracks on overhead doors.
• Replace or clean exhaust filters.
• Clean, inspect and/or service all appliance as per the manufacturer’s recommendations.

Annually:

• Replace smoke detector batteries.
• Have the heating, cooling and water heater systems cleaned and serviced.
• Have the chimneys inspected and cleaned.  Ensure that rain caps and vermin screes are secured.
• Examine the electrical panels, wiring and electrical components for evidence of overheating.  Ensure that all components are secure.  Flip the breakers on and off to ensure that they are not sticky.
• If the house utilizes a well, check and service the pump and holding tank.  ave the house water quality tested.  If the property has a septic system, have the tank(s) inspected (and pumped as needed.)
• If your home is in an area prone to wood destroying insects (termites, carpenter ants, etc.), have the home inspected by a licensed specialist.  Preventative treatments may be recommended in some cases.

What else should be added to a home owner’s regular maintenance schedule?