Save Money by Saving Energy

How to Save Money by Saving Energy

As I’m sure you know, energy bills in the UK (and worldwide) are rising rapidly at the moment. Add this to tax hikes and surging inflation, and many of us will undoubtedly be feeling the pinch in the months (and years) ahead.

The government has announced various measures to try to mitigate the impact of energy price rises. These include £150 council tax rebates for those in Bands A to D and a (somewhat controversial) £200 rebate on energy bills, repayable at £40 a year over five years. These measures may help a bit, but they are unlikely to cover all the increased costs on their own.

So today I am looking at how you may be able to cut your bills by reducing the amount of gas and electricity you use. I am indebted to my friends at renewable energy specialists Ecoflow for their infographic (below) and research, which I shall be quoting from in this article.

Infographic

The Ecoflow infographic below shows a range of data about household energy consumption, including how much electricity we typically use in a year and which appliances use the most.

Ecoflow energy infographic

The graphic shows that an average UK household consumes 14,900 kWh of energy (gas and electricity) per year.  That represents a daily energy consumption of 40.5 – 48 kWh per household.

The graphic also shows the amount of power used by different appliances in the home. Not surprisingly, the ones using most energy are cookers (19% of our total energy consumption) and so-called wet appliances (21%). Wet appliances include any that use water – washing machines, dishwashers, electric showers, and so on.

Covid has of course led to a huge increase in working from home – a trend which looks set to continue even as we move out of the pandemic. This has inevitably resulted in an increase in household energy consumption. Ecoflow say that the UK’s electricity consumption saw a 10% increase in 2021, reversing the trend in 2020 during which consumption fell by 14% year on year. The sharp increase in 2021 came largely from a return to relative normality following the restrictions and lockdowns of 2020.

When Is Most Energy Used?

EcoFlow have produced a breakdown of how our daily habits affect our energy consumption, which appliances are the most energy-hungry, and how we can change our habits to reduce our energy consumption. I have set out the main findings below, along with some ‘top tips’ for reducing energy consumption in the part of the day concerned.

Morning

survey into Britain’s most popular breakfast choices found that 4/5 of Brits’ favourite breakfast foods are cooked. Despite changing lifestyles and eating habits, a cooked breakfast is clearly still a very popular choice. But how much electricity does it consume? Cooking appliances such as hobs (0.71 kWh per use), ovens (1.56 kWh per use) and microwaves (0.945 kWh per use) account for 19% of average electricity use.

Top Tip – As microwaves are more energy efficient than ovens, try batch cooking at the beginning of the week and reheating leftovers, rather than using the oven for every meal.

Afternoon

Working from home obviously increases electricity consumption, as devices such as laptops (0.4 kWh for 8-hour days), monitors and webcams become essential aspects of our home office. But WFH also allows us to carry out daily chores such as vacuuming and using the dishwasher (3.13 kWh per cycle) throughout the day. As mentioned above, wet appliances account for around 21% of our total electricity use.

Top Tip – Simple things to look out for to reduce electricity consumption include switching your washing machine to ‘eco’ mode and ensuring you only run it when it’s full. This will not only save energy, it will save water as well (and money if you are on a water meter).

Evening

Ecoflow’s research found that electricity consumption increased by 21% during the winter of 2020 compared to the summer. As the days become shorter during the winter months, our electricity consumption goes up and use of lighting increases significantly. Lighting accounts for 14% of the overall electricity usage in a home – per bulb this is 0.84 kWh.

Top Tip – Turning off lights and/or switching to energy-saving LED bulbs is an essential part of moving towards a more energy-efficient way of living.

More Tips for Saving Energy

Here are a few more tips for reducing your energy consumption and cutting bills, starting with one from the infographic.

  • Unplug devices from the wall and turn off standby. Leaving devices such as TVs on standby uses extra electricity. Though only a relatively small amount, if devices are left on 24/7 the cost adds up.
  • With rising energy prices, switching to renewables such as solar panels becomes ever more attractive. Although the government has reduced financial incentives such as feed-in tariffs, the savings alone from generating your own energy are increasingly compelling.
  • Insulating your home to keep warmth in during the winter months can reduce your heating bills. Even simple, inexpensive things like putting draft-excluders at the bottom of doors can make a significant difference over the course of a year.
  • If you have an old, inefficient gas boiler, consider replacing it with a more modern one. The Energy Saving Trust estimates that an average household could save £195 by switching from an old, G-rated boiler to a new, A-rated condensing boiler with a programmer, room thermostat and thermostatic radiator valves. If you live in a detached house, you could save up to £300 a year. Obviously installing a new boiler isn’t cheap, but if you can find the money it should be a very good investment.
  • If you have an old, inefficient boiler and receive pension credit or tax credits, you may be eligible for a FREE boiler replacement under the government’s ECO scheme. For more information about this, check out the in-depth article above from my colleagues at Over 60s Discounts.
  • Keep tumble dryer usage to a minimum as they use large amounts of electricity. According to the Energy Saving Trust, an average tumble dryer uses roughly 4.5 kWh of electricity per cycle. Dry clothes outside if possible or over an airer.
  • Wash clothes at 30 degrees (or cooler) wherever possible. Modern washing machines will still do a good job at these lower temperatures, and again the energy savings add up.

Closing Thoughts

Obviously I hope rising energy costs will not cause you serious hardship. No-one should ever be forced to choose between ‘heating and eating’. But I hope the information and tips in this article will at least help you reduce your energy consumption in the months ahead and hence lower your bills.

Remember also that if you’re on a low income, there are government schemes such as the Warm Home Discount to help you.

In addition, you may be able to save money by switching energy supplier. Right now there aren’t many good deals around, but if you switch to EDF via my (affiliate) link you can get £50 credited towards your energy account, which should certainly help a little 🙂

Thank you again to my friends at Ecoflow for their infographic and research data. As their R&D Director, Thomas Chan, says: ‘We have to remain mindful of our energy usage and the direct effects it has on the environment and climate change. By becoming energy independent and using renewable sources of energy such as solar, people can avoid high electricity bills during the winter months.’

As always, if you have any comments or questions about this post, please do leave them below.

If you enjoyed this post, please link to it on your own blog or social media:
Hargreaves Lansdown Investment Platform

Spotlight: Hargreaves Lansdown Investment Platform

Today I’m looking at Hargreaves Lansdown, an investment platform I have used on various occasions myself over the last few years.

HL describes itself as ‘the UK’s number 1 investment platform for private investors’ and it’s hard to argue with that. It is officially the largest stockbroker in the UK and listed on the FTSE 100.

At the start of 2022 the company had a staggering £135.5 billion of assets under administration (AUA) – considerably more than their two biggest rivals in the UK, AJ Bell YouInvest and Interactive Investor.

What Does HL Offer?

As you might expect for such a large company, Hargreaves Lansdown offers a wide range of accounts. These include:

Within their investment accounts, clients can select from a huge range of funds and individual company shares. HL have over 500 funds listed, including OEICs and unit trusts. You can also invest in thousands of individual company shares on the UK, US, European and Canadian markets.

What Are The Charges?

HL charges an annual platform fee of 0.45% for shares, ETFs and investment trusts.

For funds, the fee begins at 0.45% for the first £250,000, 0.25% for the next £750,000, and 0.1% for the next £1,000,000. There are no additional charges for any fund holdings over £2,000,000.

There are caps on maximum charges for different account types, e.g. a maximum £45 annual management charge on shares in a Stocks and Shares ISA. For more information about fees and charges, see the HL website.

Share dealing charges start at £11.95 per deal but reduce to as little as £5.95 based on the number of deals you made in the month before. This is set out in the table below.

HL share Dealing charges

Note that there is an added foreign exchange charge for overseas share deals, depending on deal size

Information and Advice

As well as dealing and portfolio management, Hargreaves Lansdown also offer investment information and advice.

For starters they have The Wealth Shortlist, a list of recommended funds researched and chosen by HL for their long-term potential. This can help investors narrow down their choice of funds from the vast number available on the platform.

HL also offer a service called Portfolio+. This is aimed at people who want to invest but prefer to leave the choice and management of investments to HL’s experts. You simply choose one of six ready-made portfolios that invest in a broad mix of assets across a range of countries and regions, giving lots of diversification (something regular readers will know I’m a big fan of).

Portfolio+ offers simplicity, performance potential and a low minimum investment of £1,000. Portfolios can be sold at any time free of charge (though of course they should only be bought as long-term investments). Once invested, portfolios are automatically rebalanced twice a year. No additional charges are levied for managing your portfolio. Not surprisingly, Portfolio+ is a popular choice among HL investors.

Personalized advice from professional financial advisers is also available via the HL platform. There is (of course) a charge for this, but the initial consultation is free. Again, see the HL website for more information.

What Are the Pros and Cons of Hargreaves Lansdown?

Pros

  • Large, well-established platform with huge (over 1.5 million) client base
  • Wide range of accounts to meet all needs
  • Well-designed, user-friendly website
  • Mobile app also available
  • No dealing fees when buying or selling funds
  • Highly rated UK-based customer service team
  • Information, advice and ready-made portfolios available

Cons

  • Share dealing fees of up to £11.95 per deal are above average
  • Management charges for larger (over £50,000) portfolios are less competitive

What Do Users Think?

On the popular independent TrustPilot website, HL has an average rating of 4.2 (‘Great’) at the time of writing, with 55% of users awarding them a maximum five stars rating. That is on a par with the other leading UK investment platforms.

Positive comments emphasize the high-quality customer service, the well-designed website, and the range of investment products available. There are fewer negative comments, but some of these concern HL’s above-average charges for some services. There are also a few complaints regarding technical issues with the website.

  • Hargreaves Lansdown has also received various industry awards, including ‘Best Share Dealing Platform 2021’ (UK Investor Magazine) and ‘Best Digital ISA’ (Boring Money 2021 Best Buys).

Closing Thoughts

If you are planning to start investing (or switch from your current platform) Hargreaves Lansdown undoubtedly has a lot going for it. It’s a popular, well-established platform with a wide range of accounts and services on offer. Their charges are generally competitive, and (as I can testify myself) the UK-based customer service is first rate.

Their Portfolio+ service is an attractive option for novice investors – but equally, if you are happy to pick your own shares and funds, HL has all the info and tools you need.

If you are planning to regularly buy and sell individual shares, Hargreaves Lansdown is on the pricey side. In that case a low-cost share-dealing service such as eToro might be better for you. They offer commission-free trading on shares and charge no monthly account fee. That makes them ideal for short-term traders and investors looking to build a portfolio of shares cheaply. Of course, this is a much riskier approach to investing, and not recommended for those new to the field.

As ever, if you have any comments or questions about this blog post, please do leave them below.

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

Note also that this post includes affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered.

If you enjoyed this post, please link to it on your own blog or social media:
Investments Update Feb 2022

My Investments Update – February 2022

Here is my latest monthly update about my investments. You can read my January 2022 Investments Update here if you like

I’ll begin as usual with my Nutmeg Stocks and Shares ISA, as I know many of you like to hear what is happening with this.

As the screenshot below shows, my main portfolio is currently valued at £20,870. Last month it stood at £22,275, so that is a fall of £1,405.

Nutmeg Main Portfolio Feb 2022

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £2,682 compared with £2,837 last month, a net fall of £155. Here is a screen capture showing performance over the last year.

Nutmeg Smart Alpha Feb 2022

There is no denying 2022 has got off to a disappointing start as far as these investments are concerned. Overall, they take the value of my portfolio back to where it was at the end of June 2021.

It is though worth noting that since I started investing with Nutmeg in 2016 I have still enjoyed a total return on my main portfolio of 45.8% (or 64.81% time-weighted). I should also mention that I have selected quite a high risk level for both my Nutmeg accounts (9/10 for the main one and 5/5 for Smart Alpha). This has served me well generally, but I’m sure investors who selected lower risk levels will have seen smaller falls this month.

Of course, it’s not just Nutmeg investors who have had a bad month. Equities generally have taken a tumble in the last few weeks. Commentators have varying opinions about this, but two reasons are typically mentioned: (1) the rising tensions (and threat of war) in Ukraine; and (2) rising inflation rates allied with the removal of monetary stimulus measures as we come out of the pandemic. Obviously nobody knows for sure which way things will go, but this recent post from the Nutmeg blog sets out some grounds for cautious optimism over the year ahead.

Personally I intend to take advantage of the current dip by topping up my Nutmeg investment while asset values are depressed. I plan to add to my Smart Alpha holding, as overall this has been doing slightly better than my main portfolio. I’m also conscious that the end of the 2021/22 tax year will soon be upon us. That means the end of the current year’s ISA allowance, so it really is a case of use it or lose it!

  • The above is just my view, of course, and should not be construed as personal financial advice for anyone else to follow.

You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are still looking for a home for your 2021/22 ISA allowance, based on my experience over the last six years, they are certainly worth considering.

If you haven’t yet seen it, check out also my blog post in which I looked at the performance of Nutmeg fully managed portfolios at every risk level from 1 to 10 (as mentioned, my main port is level 9). I was actually pretty amazed by the difference the risk level you choose makes. If you are investing for the long term (and you almost certainly should be) opting for a hyper-cautious low-risk strategy may not be the smartest thing to do.

As regular readers will know, this year I am using Assetz Exchange for my IFISA. This is a P2P property investment platform that focuses on lower-risk properties (e.g. sheltered housing on long leases). I put an initial £100 into this in mid-February 2021 and another £400 in April. Everything went well, so in June 2021 I added another £500, bringing my total investment on the platform up to £1,000.

Since I opened my account, my Assetz Exchange portfolio has generated £37.18 in revenue from rental and £91.19 in capital growth, for a total return of £128.37. That’s an increase of £35.99 on last month alone, and does I guess illustrate the potential value of P2P property investment for diversifying your portfolio when equity markets are volatile.

I won’t bother publishing a statement on this occasion as it’s not massively different from last time. The bottom line is that I (still) have investments in 21 different projects with them and all are performing as expected, generating income and – in every case now – showing a profit on capital. So I am very happy with how this investment has been doing.

  • To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.

As mentioned, my investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate].

Another property platform I have investments with is Kuflink. They have been doing well recently, with new projects launching almost every day. I currently have just over £2,000 invested with them, quite a large proportion of which comes from reinvested profits. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.

Several of my Kuflink investments reached maturity in the last few weeks and I reinvested the capital released. Here is one of the new projects I invested in, a loan to convert a disused medical centre in Five Ways, Birmingham into residential accommodation. It looked a solid investment, and I also liked the fact that it was redeveloping a derelict building in Birmingham, a city where I lived for around twenty years.

My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. As mentioned above, these days I invest no more than around £150 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now!

  • Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question

You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can now build your own IFISA, with most loans on the platform (including the one shown above) being IFISA-eligible.

I’d also particularly draw your attention to Kuflink’s revised and more generous cashback offer for new investors [affiliate link]. They are now paying cashback on new investments from as little as £500 (it used to be £1,000). And if you are looking to invest larger amounts, you can earn up to a maximum of £4,000 in cashback. That is one of the best cashback offers I have seen anywhere (though admittedly you will need to invest £100,000 or more to receive that!).

  • I also recently published a blog post about another P2P property investment platform called BLEND. Like Kuflink, they offer the opportunity to invest in secured loans to experienced property developers. They offer (on average) somewhat higher rates of return than Kuflink, though arguably with a little more risk. As well as my blog post about BLEND, you can also check out what they have to offer on their website [affiliate link].

Next up, I wanted to give another plug for an excellent low-key sideline-earning opportunity I have mentioned previously on Pounds and Sense. This opportunity is based on matched betting, a sideline I have pursued for several years myself. Several PAS readers (including my sister Annie!) have signed up for this and are now enjoying a tax-free, hassle-free sideline income from it 🙂

I have been asked not to divulge too many details about this publicly, for good reasons I will explain privately to anyone who may be interested (and no, it’s not illegal!). It doesn’t require any financial outlay and is risk-free and entirely hands-off (once you have set up your account). No knowledge of betting is required and you don’t have to place any bets yourself (this is all done by the company’s clever software). You just have to set up a separate bank account for bets to go through, but running the account is entirely financed by the company.

The company has changed its terms somewhat for new members. You now get a larger £100 initial reward payment once your account is up and running, and then £25 every month you remain a member. I think this is a good move personally, as setting up the account does involve a little work on your part (though it’s certainly not like going down the mines). So the £100 in effect compensates you for your time, and once it’s done you continue to get £25 a month for no effort at all.

The company is constantly developing its offering, partly in response to feedback from PAS readers. They recently launched a new mobile-friendly website to make it even easier for new members to sign up (once you’re up and running you shouldn’t need to use the website at all). They also recently incorporated an Open Banking app so that members don’t have to provide their online banking info to the company, as some people were concerned about this.

Please note that this opportunity is only open to honest, trustworthy people who haven’t done matched betting before and have no more than two accounts already with online bookmakers. For more information (and to receive a no-obligation invitation) drop me a line including your email address via my Contact Me page. And yes, I will receive a reward for introducing you, but this will not affect the service or the rewards you receive.

  • In the interests of full transparency, I should say that if you do matched betting yourself, you may be able to make more money than that being offered by the company. However, you will have to research the techniques in detail, place all bets yourself, and probably subscribe to a matched betting advisory service such as Profit Accumulator [affiliate link]. This opportunity is really for those who want an easy way to make some extra money without the hassle (or expense) of learning/applying matched-betting methods themselves.

Moving on, I have another article on the always-excellent Mouthy Money website. Coincidentally, this is about my experiences with P2P property investment over the last few years, both good and not-so-good. Do check it out! 🙂

I was also quoted by Jackie Annett of the Express newspaper in this article about working after retirement. It’s a short but interesting read, especially if you’re coming up to retirement (or already there) yourself.

That’s more than enough for now, so I’ll sign off till next time. I hope you are keeping safe and well, and (if you live in England especially) are enjoying the more relaxed Covid restrictions that now apply. Here’s hoping that normal life across the whole of the UK will be able to resume very soon!

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

Note also that this post includes affiliate links (disclosed). If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered.

If you enjoyed this post, please link to it on your own blog or social media: