Highlights in this issue:

    * Winter’s here – and you're about to use 12.5% more...

    * What’s the most efficient heating system on the market…?

    * Trap the 25% you’re wasting – and save up to 50% off your next bill… and more…

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From the pen of Karin Iten

Dear Investment Academy Reader,

I must confess, I’ve been a rather big grump over the past few weeks. Why? Because every morning when I wake up, it’s a little bit darker and a little colder. Yup, try as I might to avoid the horrid truth, winter’s on its way!

This means the average electricity bill is likely to increase at least 12.5% (and that’s a conservative estimate). With Eskom’s price tariff hike looming menacingly over our heads, even a 12.5% rise in your bill is likely to set you back an extra couple of hundred rands every month. It’s never been more crucial to find ways to stay warm without breaking the bank, and that’s what this week’s issue is all about.

Tip #1: Use heating sparingly
According to eskom.co.za, staying warm in winter isn’t that tricky. “Heaters are popular when temperatures drop. Unfortunately, while providing warmth, they also burn energy at a steady rate. To reduce your winter electricity bills, there are several things to bear in mind about heating.” Here are a few of the site’s suggestions when it comes to heaters:

• Electric heaters that are controlled by thermostats are more efficient than those without.
• Oil filled heaters are the safest option.
• Electric blankets are the cheapest way of staying warm in the bedroom.

Tip #2: Stay toasty and still be able to use your hands
Now here’s a great invention. I love to read, but there’s nothing worse than turning the pages of your latest must-read and having your hands and fingers freeze in the process. Now you don’t have to and here’s why: It’s called the Snugget and, according to retailer Glomail, it’s the perfect item for anyone who wants “a blanket that keeps you warm and cosy, while you comfortably perform other activities”.

This super soft, light weight fleece blanket has sleeves and includes a foot pocket that keeps your feet warm and snug. It’s a great way to save on heating costs retailing at a once-off cost of just R299. (The Snugget is available in all Glomail stores, as well as Game stores nationwide.)

Tip #3: Uncover the secret of European indoor warmth
There’s nothing as toasty as a European house in the middle of winter. Their secret: Weather stripping. Basically, all weather stripping consists of is pressure-sensitive adhesive-backed foam. And, lucky for us, it’s quite inexpensive.

Here’s how if works: When compressed by a door or window, the foam seals out the air. As an added advantage, these strips also provide a cushioning effect that silences slamming. Though not permanent, it lasts between one and three years. Costing between R84.99/m and R89.99/m, weather stripping is available at Builders Warehouse outlets countrywide.

But if buying weather stripping sounds like too much effort and money, consider this: Felt is an old standby for keeping out that chilly wind and it’s economical too. It comes in a variety of widths, thicknesses, qualities and colours (brown, gray and black) and is available at all craft and material shops. All you need to do is nail these felt strips in place.

Tip #4: Don’t let any heat escape
More than 25% of heating escapes through the roof. So, you’re probably wasting a whole lot of energy heating your home if it’s not insulated. By insulating your home, you can cut between 40% and 50% off your electricity account. But, what few of us realise is that roof insulation (commonly made from glass wool) only lasts around 15 years before you need to replace it.

So don’t forget to check when last your house was insulated to ensure the warm air doesn’t escape during (and after) heating.

Tip #5: Know when to close and when to open
If you’re trying to keep your heating bill down, don’t forget to use the power of the sun. This means keeping your curtains or blinds open during the day to let as much sunlight in as possible. And shutting them a half an hour before the sun goes down to preserve as much of the heat generated during the sun in day (and your heater at night).

Till next week, here's to your financial freedom (and keep warm)…

Karin Iten
For the Investment Academy

* This article was adapted from a MoneyWeek feature.

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