Everyone grumbles about utility bills, it seems, especially in the winter. While there are ways to lower your usage of these things and thus reduce your monthly bills, you first have to set up a system for monitoring monthly usage through account statements. Here are some tips for doing that.
1. Write clear notations in your checkbook. Assuming that you pay household bills by check, make a well-written entry that indicates the bill that is being paid, and preferably, for which time period since some statements may arrive late. On the actual check you can also make a notation on the bottom subject line for quick reference later. If you pay by money order, follow a similar procedure on the portion you keep for your file. When paying by cash, always get a receipt and check it to be sure accurate amounts are reflected.
2. Keep the payment stub of the utility bill. Some financial experts recommend keeping stubs on file for seven years; others claim that three years is long enough. Whatever your choice, set up a filing system at home in a cabinet, drawer, or even in a plastic "milk case" structure in which you can keep copies of paid bills. File these by month or utility company, and add the paid monthly stub each time you pay the bill. On the statement stub, indicate the payment date, the amount, and your initials if more than one person pays bills in your household. Keep the stubs in chronological order for easy reference.
3. Create a daily or monthly ledger of itemized bills. For example, when paying utilities, these may appear on a separate page, with mortgage, taxes, and home insurance on another page, food on another, etc. Even though you have a checkbook register for reference, the ledger allows you to see monthly bills of one kind or another at a glance. So you can readily compare February's utility bills, particularly heating, with that of April, for example. Place dividers in the ledger, unless it already has them, to help you find each month quickly when needed.
4. Keep a file of utility maintenance, repairs, or replacements. For example, buying a new window air conditioning unit may help you save cooling costs if the old one required excessive electricity to operate. Having the furnace maintained annually or changing filters to a more efficient brand may likewise lower heating costs. Check the product claims against actual performance to be sure you're getting your money's worth. If not, you can contact the company and ask for an adjustment or a refund.
5. Compare utility costs every few months. Even if no changes in the equipment have been made, you will want to know if costs have increased or output is lower. Sometimes the utility company will raise its rates, which somehow you miss knowing about. It's only when the bill comes in with a five percent higher amount due that you realize the difference and should call the company for a confirmation. For some utilities, like propane, you may be able to ask for a discount if you are disabled or elderly, for example, or shop for competitors' lower rates.
Don't assume your utility bills will take care of themselves. Keep an eye on monthly costs, maintain clear, easy-to-find records, and take steps to lower costs or prevent hikes when feasible.
