Warren Buffett describes his first rules of investing as: “Rule #1: Never lose money. Rule #2: Don’t forget rule #1”.
But losing money doesn’t just happen in a stock portfolio – it’s also a common occurrence in other facets of life. That’s why Warren Buffett leads such a frugal lifestyle. He knows that every extra dollar spent on something he doesn’t need is wasted capital.
In practically every house in America, capital is being wasted on energy consumption. That’s because the average electricity spend per year is $1,368.36 per year, and 35% of the power used is actually wasted.
In August, Mohnish Pabrai took part in Brown University's Value Investing Speaker Series, answering a series of questions from students. Q3 2021 hedge fund letters, conferences and more One of the topics he covered was the issue of finding cheap equities, a process the value investor has plenty of experience with. Cheap Stocks In the Read More
This is neither good for your bank account or the environment.
What Uses the Most Energy in Your Home?
Today’s infographic from Connect4Climate shows the breakdown in the energy use of a typical home.
It highlights the average cost per year of different appliances, while also showing what uses the most energy over the course of the year.
Modern comfort comes at a price, and keeping all those air conditioners, refrigerators, chargers, and water heaters going makes household energy the third-largest use of energy in the United States.
Here’s what uses the most energy in your home:
- Cooling and heating: 47% of energy use
- Water heater: 14% of energy use
- Washer and dryer: 13% of energy use
- Lighting: 12% of energy use
- Refrigerator: 4% of energy use
- Electric oven: 3-4% of energy use
- TV, DVD, cable box: 3% of energy use
- Dishwasher: 2% of energy use
- Computer: 1% of energy use
One of the easiest ways to reduce wasted energy and money? Shut off “vampire electronics”, or devices that suck power even when they are turned off. These include digital cable or satellite DVRs, laptop computers, printers, DVD players, central heating furnaces, routers and modems, phones, gaming consoles, televisions, and microwaves.
Warren Buffett would probably agree that a penny saved is a penny earned – and being more efficient with your energy use is good for your pocketbook and the environment.
By Jeff Desjardins, Visual Capitalist