This Simple Dave Ramsey Tip Can Help You Spend Less at Home

Is it possible to reduce your spending at home?

Cutting costs doesn't have to be hard. In fact, if you can reduce the spending you do at home, it can make a big difference in how much cash you end up with in your bank account.

Dave Ramsey has a simple suggestion for cutting a key housing cost shared by most renters and homeowners alike. Here's what the finance expert recommends.

Could this Dave Ramsey advice help you reduce your costs?

Ramsey suggested that if you want a simpler way to reduce your spending, you should consider going greener. "Make more energy-efficient life choices," he advised.

Ramsey offered many specific examples of how you can do that, including:

• Purchasing Energy Star-certified light bulbs
• Shutting off lights when leaving a room
• Installing a programmable thermostat so you can more easily adjust your heat and A/C settings
• Opting for cold water cycles instead of hot water cycles when you are washing your clothing

"Some of these are financial investments upfront," Ramsey acknowledged. "But they all pay off in the end. Green changes like these can keep more green in your wallet."

Is Ramsey right?

Ramsey's advice here is a great suggestion both for people who own their own home as well as for people who are renters and who have to cover utility costs.

Electric bills are a big expense for most people. And, unlike your mortgage payment or your monthly rent, they can be easily changed with some basic behavioral modifications. While some of the steps you can take do require you to spend money before you can save it, as Ramsey acknowledged, other steps don't cost you anything and can make a big difference in your monthly outflows.

For example, one way you can go greener is to keep your house a little bit colder in the winter and a little bit warmer in the summer. And, while Ramsey said you can install a programmable thermostat to do that, you don't have to get that fancy (or spend the money upfront). You can just crank it up or down a degree. The benefit of going programmable, though, is that you can adjust the temperature even more when you're sleeping or away at work, so it could pay off for some people.

You can also make more drastic changes, such as installing solar panels or new energy-efficient appliances. These modifications would usually only pay off if you're planning to be in your house for a while (and are only an option for homeowners, not for renters). But, there are often federal and state tax breaks for making energy-efficient modifications to your home, and your utility company may offer rebates or incentives as well. You can check out EnergyStar.gov to find out if there are options to help you.

Ultimately, there's nothing to lose and a lot to gain by going greener. You can feel good about your efforts to help the planet while also getting to keep more money in your pocketbook. Why not give it a try and see what modifications you can make?