Keep an eye on warm water usage. Who doesn't love a long, hot shower in the depths of winter? But the more water a shower head disperses, the more heat is needed to warm it. Installing a low-flow shower head saves money in two ways: It cuts down on energy usage as well as on water usage. Insulating the water tank yields even more savings.
Look at the clock. Energy is cheaper during off-peak hours; that is, before about 7 a.m. and after about 10 p.m., depending on the local utility. Set the thermostat to heat the house shortly before and after off-peak hours end and begin, and to turn off when the desired temperature is reached. A well-sealed home will retain the heat until everyone leaves for the day or retires for the night. Also, running appliances at off-peak times shaves dollars off monthly energy bills.
Heat a smaller space. Why heat the rest of the house when you're using only one room? Buy a space heater for about $30 and set it up in the most heavily used area of the home. By concentrating the heat in one spot, it's possible to lower the thermostat. Although running the portable heater certainly has a cost, it may be less than keeping the entire house at a toasty temperature.
Block the chimney. Make sure the damper in the chimney is shut tight. This simple step will prevent heated air from escaping the home out the chimney. The financial benefits are apparent without making any additional investment.
Insulate the attic and basement. Out of sight and out of mind, perhaps, but the cool air in uninsulated parts of the house contributes to the overall cost of heating. According to the Energy Star program, insulating an attic, crawl space, basement walls and the floor above an unfinished basement can reduce heating costs by an average of 15 percent. Although the price of insulating an attic can exceed $1,000, the investment should pay off in a few seasons.
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