Tag Archives: Part

Save Money on Electricity Part I

If you have ever asked yourself, “how can I save money on electricity costs,” you are not alone. We are all dependent on electricity for not only our basic needs (cooking, cleaning, lights, heat) but also for those things that add to our standard of lining (TV, computers, video games, microwave, etc.) As sources for oil and natural gas dry up (and they will…we just don’t know when), electricity will play an even larger part of our lives. We will likely find ourselves driving electric cars, which will require recharging at home.

Saving money on electrical costs is not just a case of using it less often. Sure, you could let your hair dry by itself rather than use the hair dryer, but if you really want to use the hair dryer this is more of a sacrifice than savings. To really save money, you need to figure out how to do the same stuff, but for less money! To start with, it makes sense to stop paying for power that isn’t being used for any purpose at all! Here are a few basic ideas, with the idea of eliminating waste:

Don’t leave things turned on when you aren’t using them. This includes lights, of course, so simply turning them off when you leave the room makes sense (yes, even fluorescent lights — they don’t draw that much current when being turned on, so don’t fall for that myth that you’ll save money by keeping them on). You can install light switches that activate only when there is someone in the room, which will make a huge difference. Bathrooms and hallways are perfect for this.
Lights aren’t the only thing that can be turned off. Coffee pot warmers don’t need to stay on! You can nuke your coffee in the microwave for a few seconds, rather than leave the burner on for hours at a time. You’ll use less electricity and have better tasting coffee. Televisions, radios, ceiling fans all get left on for hours at a time even when no one is there. Some devices have built-in timers that automatically turn themselves off after a certain amount of time. Use them and save money!
Beware vampires! There are many devices that continue to draw electricity even when they are turned off. In some cases this is to allow the device to be ready to use more quickly. For instance, televisions keep the tube “warm” so it can display a picture more quickly after being turned on. How valuable is that extra few seconds? Is it worth paying for hours of wasted electricity? At the very least these devices should be unplugged when you go away for any length of time. If you aren’t sure which devices draw power even when turned off, ask yourself what gets affected by power outages. Anything that needs reprogramming, or has a longer than normal delay after being turned on is almost certainly drawing power even when turned off.
Computers and all their peripherals are a major drain on electricity. True, turning off your computer requires a lengthy boot-up time when you turn it back on, but if you are going out for several hours, or going to bed for the night, it makes no sense at all to have the computer left on. For shorter away-time, at least turn off the monitor or use the power-saving features that come with most computers. Also, printers and other devices should be turned on only when you need to use them — unless printing a page within seconds is a life and death situation. Lastly, routers and other networking devices don’t need to stay on all the time. If the computers are all turned off, then these devices should be turned off as well. Since most of them don’t have power switches, they should be plugged into a power bar that can turn them all off at once.

Most of these money-saving ideas are pretty obvious, and you have almost certainly heard them all before. But ask yourself: are you actually doing all of them? Probably not, but you should be and here’s why: it is the easiest method of saving money on electricity. If you aren’t willing to do these simple things, then you aren’t likely to take advantage of any of the others that I will be presenting in my upcoming articles either. And that just means you’ll continue to pay through the nose for electricity that you aren’t even using.

You can look for my other articles on this topic by clicking on my author profile. Also, links will be provided on my blog on homemade energy. Check it out for even more tips.

Erik Christensen

Time is Money – Part 1

Stock options have been on the investment scene for many years now but still, few people understand them. I remember as far back as 30 years ago, I used to watch The Stock Market Observer on Channel 26 in Chicago. In this show, many sophisticated stock brokers would come on to give their market outlook, stock recommendations and answer client questions. Whenever someone would question the expert about options, the answer would almost always be the same…

“STOCK OPTIONS ARE TOO RISKY. STAY AWAY!”

The truth is, it was something new to them and outside of their comfort zone. Rather than learn something new or admit that they had limited knowledge about the subject, they tried to scare people away. But 30 years later, options are still an important part of today’s marketplace. If you want to make money consistently in the investment world, then you need to understand options!

The Basics

The first thing you need to know is that options are a RIGHT. The buyer of an option has the right, and not the obligation, to buy or sell an underlying investment such as a stock, a future, even a house!, sometime in the future. The seller of the option has an OBLIGATION to deliver the underlying investment. For this obligation, the option seller is paid a sum of money that we will call PREMIUM.

There are two basic types of options. One is a CALL OPTION. The call option gives the buyer the RIGHT to buy a stock (or other underlying instrument) for a certain price at a certain time in the future. The other is a PUT OPTION. This gives the buyer the right to sell a stock at a set price by a certain time in the future. If you believe the price of a stock is going to go up, you would buy a CALL OPTION. If you believe the price of a stock is going to go down, you would buy a PUT OPTION.

Strike Price

The strike price is a critical part of the option. It is the price that the future transaction will take place at. For example, if you, as a call buyer, purchase a $ 50 option, you will have the right to buy the stock at $ 50 per share. It doesn’t matter what the current price of the stock is, you have the right to buy the stock at $ 50. If the stock is now at $ 75 a share, you can exercise the option to buy at $ 50 and immediately sell the stock in the open market at $ 75 and receive $ 25 back. If the stock however is at $ 40, there would be no point to buy the stock at $ 50. You would be better off to go to the open market to buy at $ 40. You can see that the $ 50 option probably would not have much value.

If you were a Put buyer though and purchased the $ 50 put, if the stock were at $ 40, you could exercise the put, sell the stock at $ 50 and buy it back in the open market for $ 40, receiving $ 10. If the stock price were at $ 75, there would be little value for the option.

Volatility Can Increase the Option Price

What if the stock price has been known to go up and down more than $ 10 in a week? Well, even if the stock were at $ 40 and you were the call buyer of a $ 50 call, you can see that there is a possibility that should the stock move by 10 points two weeks in a row, you could make money! The same goes for the put buyer. If you bought the $ 50 put and the stock is now at 40, it could drop to 30 or perhaps go up to 50. The more volatile the stock is, the more expensive the option price will be. Hopefully, you can see why.

TIME IS MONEY

Besides the strike price, and it’s relation to the current stock price, and volatility, a key factor in option pricing is TIME. All options expire at a certain date in the future. For stock options, that day is usually the third Friday of the option month. If you watch stocks regularly, you might see extra action around a stock price as the date approaches the third Friday of the month. Buyers and sellers might be unusually active at this time. You might see the price of the stock be moving towards a strike price number, such as $ 50, and vacillating around that number. Option expiration activities are often the driving force.

If you want to learn how to make money every month, you need to understand options.

If you want to learn how to make easy money, subscribe to Time Is Money so that you don’t miss any posts. You will certainly learn how to make money every month by learning my techniques. Be sure to also read my daily blog at my Asset Design Center.com. I post several times a day and discuss what is happening in the markets. If you want to know what I am doing and when I am doing it, be sure to sign up for my market newsletter at the Asset Design Center blog. Only subscribers know what I do, when I do it.