Heating Bills Are Expected to Jump This Winter. Here’s How to Save Money

Don’t let your heating bill burn a hole in your bank account.

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Important points

• This winter is expected to be colder than usual in much of the country.
• The cost of fuel to heat homes may increase as supply is expected to decrease.
• Actions like adjusting your thermostat and budgeting for higher costs can help keep your heating bills manageable.

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As a native Californian now living in the Midwest, you could say I am very aware of the cold weather months approaching. As beautiful as fall can be, no amount of leaf-peeling photos in my camera roll can soften the blow when temperatures drop and suddenly my face hurts when I step outside. And that’s unfortunately not the only thing that can hurt about winter.

Many people, especially those living in colder climates, see their utility bills soar in the winter as they turn up the heat in response to outside temperatures. And this year’s bills could be even higher than usual thanks to a combination of factors.

Why heating costs can rise

Experts are predicting a relatively colder winter for much of the United States this year. That will result in many homes using more fuel – whether natural gas, electricity or some other source – to keep their homes comfortable throughout the season.

At the same time, the cost of these fuels, particularly natural gas, is expected to increase. That’s partly because of Russia’s invasion of Ukraine, which disrupted a key source of world natural gas production. Another reason is that OPEC (Organization of Petroleum Exporting Countries) recently released its forecasts for oil demand for the fourth quarter of the year. It forecast slowing demand due to slowing economic growth and announced an expectation to reduce production. And according to basic economic theory, less supply of something generally leads to higher prices.

This combination of higher fuel prices and a colder winter points to an expected increase in heating bills of up to 28% for many Americans. And that can be a real blow at a time when inflation is already wreaking havoc on many people’s finances. While there may not be a way to avoid this surge entirely, there are a few factors you can control to lessen some of the sting.

Tips against higher heating costs

I used to have a roommate who wore shorts and a tank top in the apartment and turned the heat up to 80 degrees because she was “cold.” Don’t be like her. While we all probably prefer the most comfortable temperature when we’re at home, try lowering your thermostat a few degrees. You can even start by gradually lowering it each week so you can get used to the change. If you normally want a home temperature of 73 degrees, try working your way down to 68 degrees. Experts say that for every degree you lower your thermostat, you can save about 1% on your heating bill, a 5% reduction in your heating bill.

Layers are your friend in winter, so snuggle up in a sweater and fluffy socks when you’re cold rather than cranking up the heat. And throw in some jumping jacks or up-downs while you’re at it. Getting your blood pumping is a quick way to go from cool to comfortable with little effort and no expense.

Back to your thermostat. If you have a programmable one, try setting a schedule where the temperature is lower while you’re out and sleeping. Reducing the hours that you keep your home at its peak temperature should make a noticeable impact on your heating bills. Or if you work from home, do what I do: turn the thermostat down during the day and use a space heater for the room you spend most of your time in. I don’t find it necessary to heat the whole house for 8 hours I work if I spend 90% of it in my office. I could turn on the space heater for a few minutes every hour, and it stays warm enough with the door closed.

Any of these tips will help, but it’s unlikely you’ll avoid higher heating bills entirely this winter. It is therefore all the more important to plan for the increased costs in good time. Make sure you have enough emergency savings to cover higher-than-usual bills and see if there are places to save over the next few months. Maybe you can invite friends over for a potluck meal instead of going out to restaurants as often. Or you might pause your online shopping habits for a while when you don’t need to buy any important items. You could even go big and try a spending-free week to see how much you can save.

Don’t let winter bills lead to winter blues

Winter can be a beautiful time of year with lots of outdoor fun and indoor cosiness, but it can also be expensive. Take action now to prepare for a potentially more expensive-than-normal winter, so your bank account will be in as good shape as your snowmen when the temperatures drop.