With the recent hike in electricity tariff, everyone is looking for ways to cut costs, especially if you already have a prepaid meter installed at home. Currently, the new tariff increase since October 2020 is over 100%, meaning everyone would start paying twice what they previously paid.
Things are hard enough as it is especially in a place like Lagos, and if you don’t plan to pay double, you have to adjust accordingly. Although you would certainly pay more, but knowing how to reduce your electricity usage in Lagos would do you a lot of good. Read on to find out a few tips on how you can reduce your electricity bill.
How to Reduce Your Electricity Bill in Lagos
To start with, you should know that for these tips to work for you; you need a prepaid meter installed. Without a prepaid meter, your bill pretty much runs on estimates and leaves you with little room to contest its accuracy. If you want to save power, start by getting a prepaid meter installed at home.
After that, here are a few tips on how to reduce your electricity bill in Lagos:
1. Sniff out background power consumption:
Many don’t know this, but turning off a device while leaving it plugged in does not cut off the power supply. The device still consumes residue energy called vampire or stand by power. To avoid this, cut off power to a device by turning off the socket and the device’s power switch.
2. Replace all your bulbs at home with energy-efficient models:
Although non-energy-efficient bulbs are cheaper to purchase, they become more expensive in the long run to use. This is because they consume far more power than energy-saving bulbs. For example, the average wattage of an ordinary bulb is around 60 to 200. However, energy-saving bulbs are as low as 7 to 11 watts. This means that one would consume more than ten times the other’s power; the choice is yours. Also, it would help if you become more cautious with how long you leave your bulb on. Turn them off during the day, and when you want to sleep at night; especially your kitchen, toilet and bathroom lights. Only leave security lights on.
3. Limit your fan and Air conditioner’s runtime:
The ceiling fan is one of the home’s highest passive power consumers. You might not know it, but your fan practically runs all day and night, which significantly impacts your power bills. One thing you can do is replace all your fans with energy-efficient models if you have the means. However, if you don’t have the energy-efficient model, simply regulate how long the fan runs. The energy-consuming capacity of an air conditioner is well known. Keep it running for a day, and it would make a telling impact on your bills. A 1.5hp (1119watts) Ac running for 10 hours at a rate of N60 per kilowatt would cost you well over N30,000 alone. You can shuffle run time between your fan and air conditioner, depending on how many units you purchase per month. Limiting your fan to running only about 8 hours a day can save you hundreds of naira.
4. Revisit your refrigerator:
This is another appliance that consumes the most power at home. The average watt consumption of a refrigerator is 1200 watts per day (depending on the model), which means they consume one of, if not the highest power at home. You can reduce consumption by purchasing a smaller freezer, which is the more expensive approach or doing the following:
- Move the refrigerator to an area with adequate air circulation, as it helps it become more power-efficient.
- Your fridge should also be at least 2 inches away from the wall and not stand directly exposed to sunlight.
- Another thing you should do is not stuff up your refrigerator. This reduces the overall efficiency of the unit because of the lesser space available for air circulation. It also means that the unit would draw more power to meet the demand. Ensure you defrost the fridge regularly too
Asides from the tips mentioned in this article, you should also sit down to study your home. If possible, create a list of all your appliances and their watt rating. Start trimming down consumption by replacing the device with a more energy-efficient model, or reducing its use.
How interest rates impact your wallet
It is imperative to understand how interest rates impact our wallets.
In the financial world, the interest rate plays a huge role in any financial transaction. Interest rate is the proportion of money a borrower pays for an asset or any form of debt. It is the return or interest paid to the financial service provider.
In Nigeria, interest rates are by financial institutions and the Monetary Policy Committee (MPC) assigned by the federal government to keep interest rates at a moderate and stable price level for proper economic growth.
When it comes to interest rates, either increasing rates or declining rates, the economy gets influenced in many ways. Rates of interest ascertain economic performance. Lower interest rates are a sign of a slow or poor economy as interest rates are changed to enable cash flow.
Higher interest rates are, in turn, viewed as an indicator of a healthy economy with favorable cash flow. Interest rates can slow down or improve an economy. It is necessary to examine the various aspects of our financial life influenced in different rate scenarios to understand how interest rates impact our wallets;
Some ways interest rate can impact your finance are:
Many factors influence how an individual saves, but a decline in interest rates tends to discourage saving because the reward is affected. A higher interest rate makes it attractive to save money as it enhances increased return. Thus, a change in interest rates influences an individual saving, which is an essential part of financial planning.
How you will be affected by a change in interest rate depends on if you are inclined to borrowing or investing. Because the interest placed on loans will be less, lower interest rates offer more opportunities to borrow or acquire cheaper loans, which means it favours the borrowers. People are discouraged from getting loans to invest in their businesses because a higher interest rate translates to a higher borrowing cost.
Lower interest rates allow companies to acquire less costly loans that impact the price of the goods they sell. As far as expenses are concerned, people will have more funds to spend on goods and services.
Interest rates can have an impact on the income people earn by affecting economic growth. Slow economic growth will influence the level of income earned. With substantially less income, people will have less cash to survive on.
When setting financial goals and making meaningful decisions regarding one’s finances, understanding the impact interest rates have on one’s life can help.
5 Key habits of people who are very good at saving money
Let’s quickly highlight 5 key habits usually found in individuals who are very good at saving money.
Saving money is hard. Period. This is a well-known fact. Despite the vast amount of information on ways and techniques to save money out there, 90% of people still struggle with it.
A large percentage of the working demographic live paycheck to paycheck. A huge chunk of this percentage is swimming in an ocean of debts. Avoiding calls and burning bridges, in a bid to save face.
When it comes to personal finance and savings, there are two foremost arguments
- The Income argument
- The Individual argument
The Income school of thought argues that for you to be able to save money, you must be earning enough. This means that the art of saving is largely dependent on the income earned.
The Individual argument postulates that if you can’t manage the little you earn, there is no guarantee you will be able to save when you start earning more. This means that the art of saving has more to do with the individual involved than the income in question
Whatever side of the argument you lean on, I believe you must have come across people who are simply just good with money. it seems to come naturally to them. They have so much control over their financial life that other people confidently entrust them with their own money.
After a little bit of research, we want to quickly highlight 5 key habits usually found in individuals who are very good at saving money. There might be other factors, but these five habits are always present.
Money smart individuals are not impulsive when it comes to spending money. Put in simple terms, they buy because they need and not because they want. They seem to defy the general rule of marketing which believes that human beings naturally make purchases based on emotions and not logic.
They are not lured by the appeal of big brands and most times go for products that will last a long while
Individuals who are good with saving money make a lot of sacrifices for the greater good ahead. They just don’t set saving goals, they have the discipline to achieve them.
They readily sacrifice the little joys of evening shawarma to make rent at the end of the year without going broke.
Delayed gratification is one key habit that is always present in individuals who are very good with money.
Read Also: 10 ways to save and make more investments
Obsessed With Self Control
Individuals who are very good at saving money usually exhibit a high level of self-control in other areas of their life. A closer look will reveal that they portray the same meticulous approach they have with money in other areas of their lives.
Many were taught by their parents from an early stage, while some picked it up themselves while growing up.
Individuals who are good with money possess extraordinary willpower which keeps their human side in check. This helps them live below their means and always dredge up extra cash to save.
Big Record Keepers
Not many people know the exact amount they spent last month. It takes a meticulous individual who is obsessed with saving every penny to go that far.
Money smart individuals keep clear records of all their transactions. These records help them draw up a savings plan or goal.
Money smart individuals see shopping as a big occasion. They don’t trivialize the art of spending money as ordinary people do. They keep good records of all transactions made and always reflect on them.
They have a good knowledge of the numbers and can always tell when they are overspending.
Numbers are critical!
Every Penny Counts
Individuals who are good with saving money have equal respect for an N1000 note and an N20 note. To them, there is no difference between the two. They treat money as an entity and do not apportion importance based on value.
Ordinary folks see an N20 bill as easily expendable, Money smart individuals see the missing N80 to make it an N100.
Huge Fan Of Investing
Money smart Individuals always have a knack for investing their savings. The major driving force behind their saving habits is usually the love for investing. You cant be a successful investor if you don’t have idle cash to invest.
Money smart individuals are fund of making long term bets. They enjoy the idea of watching their money yield more money. They are obsessed with it.
They are always fishing for the latest smart investment opportunities available.
Their saving ethics is usually driven by the fear of missing out on a very good investment opportunity.
There might be other contributing factors behind the reason why some people are better at saving money than others.
We believe the above reasons are the foremost
The Good news is most of these habits can be adopted by people who are eager to join the elite club of money-smart individuals.
Today is the best day to start!
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