Winter is not cheap and there are no two ways about it. Energy bills skyrocket and we spend far more on food. Keeping ourselves entertained in the dark and dreary months that stretch from the end of September to the end of April costs more because we have to spend most of our time indoors and travelling from A to B is dearer because we tend to rely more on high-cost options, or at least ones that cost more than using feet, bikes and buses.
If you want your home to be illuminated in the winter – and let’s face it, you do – it will cost you about 80 cent a day compared with virtually nothing in summer. That means the simple act of lighting your surroundings will add close to €150 to your annual bills.
You can’t dry your clothes outdoors in winter and using a tumble dryer just a couple of times a week over the winter will add another €150 to your expenses in the months ahead.
If you keep the heat on for six hours daily it will cost you another €1,500 compared with nothing, in an ideal world, over the summer months.
Then you have the higher cost of eating – we are genetically programmed to overeat in the winter. Dressing is dearer too. Those coats and heavy clothes don’t come cheap.
Pricewatch has totted up the numbers in the past and reckons if we divide the year in two, the long months of winter cost at least 10 grand more than the shorter months of summer.
But there are things we can do to take the financial sting out of winter and the best time to start is before darkness falls.
1. We have said it before and we will say it again, the easiest way to save money this year is to shop around for the cheapest electricity and gas provider and to do it before the high bills of winter start coming through our letterboxes, at least in a virtual sense.
Despite the clear financial advantages in shopping around every year, the vast majority of Irish consumers are happy to stick with their current provider year in, year out. According to data from the Commission for the Regulation of Utilities, as much as 70 per cent of people are reluctant to change their energy provider.
But are there really savings to be made in an era of geopolitical uncertainty and climbing energy prices on global markets?
The short answer is yes.
The way companies operate is pretty simple. They value new customers over existing ones and offer discounted tariffs to those who sign up. But those discounts typically end after 12 months, after which people are put on to higher, standard rates.
That means if you have not changed your gas or electricity provider in the last 12 months, you are paying more than you need to.
How much more? Well, it obviously depends on your circumstances but we had a quick look last week and reckon someone moving from a standard rate with any of the leading companies to a discounted rate offered by their rivals can handily save themselves more than €500 over the next 12 months.
And unlike switching health insurance, broadband or cornflakes, it is very simple and there is absolutely no difference between the quality of the end product.
Using one of the price comparison and switching platforms such as bonkers.ie or switcher.ie means it can all be done in less than 30 minutes and you won’t have to spend any time listening to whatever terrible hold music the companies have chosen this week.
2. We are reluctant to mention the C word in the middle of August but we all know it is coming and we all know it is going to be expensive.
But here’s the thing. If you start planning for Christmas now, you will be able to take much of the financial heartache out of the season to be jolly.
Start setting aside money now – it doesn’t have to be much – and you will feel the benefit come December. There are 20 weeks to go before Christmas and if you were able to squirrel away 20 quid each week between now and then you’d have a decent chunk of your spending taken care of when the big day arrives.
And, as ridiculous as it may sound – and we do know it sounds ridiculous – now is the time to start your present buying.
We’re not suggesting you start your Christmas shopping in earnest but keep half an eye out for things that might make for a handy gift in the weeks ahead, paying close attention to the discounts on offer. When you see something that represents good value for money, buy it, stash it somewhere safe and enjoy a feeling of unparalleled smugness when everyone else is out panic-buying in the middle of December and you have everything sorted.
3. Do an energy audit on your house to see if there is anything that can be done to improve the efficiency of your home. Make sure your immersion is lagged properly and if you haven’t insulated your attic in decades you might consider getting it re-done. There are substantial grants on the table for upgrades and the technology has improved dramatically since the 1990s, so your wallet and the planet might benefit from an upgrade.
4. By being more conscious of how you use energy in your home, you can save hundreds of euro. Turn off the heat half an hour before you head out and don’t turn it on until you return or set a timer so that it comes on half an hour before you come back. If you lower your thermostat by one degree, your energy bill will fall by between 3 and 10 per cent. Only run your washing machine or dishwasher when full, and always run on eco-settings or at 30 degrees. Spend just a minute less in the shower every morning. Now all of these things on their own might not make an enormous difference to your finances but the impact is cumulative and by being your best energy-saving self you could save as much as €500 this winter.
5. Get your boiler serviced sooner rather than later. It is essential to have your heating system checked every year but, understandably, most of us leave it until winter is upon us. That means that the engineers are slammed and can charge a premium and we have little or no choice but to cough up. But if you resolve to get that most essential of tasks done before the end of August you will have the luxury of being able to shop around – at least to some degree – which might save you a few bob.
6. In the weeks ahead, when you find you have a spare couple of hours, do an audit on yourself. If you spot fees for any subscription services that you are not using or only using rarely, cancel them.
7. Join your local library. It obviously costs more to keep yourself – and the little people in your house, if there are any – entertained during the winter than it does in the summer. But libraries are one of the greatest and almost completely weatherproof resources we have. If you have not darkened a library door since you were a child, you might not appreciate just how far they have come in recent years: as well as all the books you can think of, libraries offer all manner of talks and tech and can be great and free places to spend some dark winter hours.
8. Despite all the price hikes in our supermarkets in recent years there are still savings to be made, not least because Irish households throw away as much as €700 each year simply because they overbuy. Make sure you know exactly what is in your cupboards, your fridge and your freezer and then make and list on that basis. And do your best to stick to the lists.
Close to 50 per cent of the typical Irish shopping trolley is now made up of own-brand products, which routinely cost about 30 per cent less than branded products. If you can find a few more own-brand products that you like, you will save a few euro more.
Eat more pulses and grains. Chickpeas, beans and lentils are incredibly cheap, particularly if you go the own-brand route, and a couple of tins added to some garlic, onions, a tin of tomatoes and some rice and you can feed a family of four a decent and hearty stew in the dead of winter for no more than a fiver.
You can contact us at OnTheMoney@irishtimes.com with personal finance questions you would like to see us address. If you missed last week’s newsletter by Olive Keogh on travel insurance for older people, you can read it here
