How to protect yourself against rising energy prices
Smart long-term thinking on personal finance demands that you put energy efficiency high up on your list of must-haves in buying cars and houses.
A recent report by the Bank of Nova Scotia suggests that household energy and utility prices have risen by 5 per cent in 2014. According to the report, more than double what the rate of inflation is. There is a strong economic incentive for Canadians to start reducing their energy consumption in multiple ways, which will help slow the rise of energy prices.
The common risks to your household budget has largely been focused on obtaining a lower interest rate. While the pressure to keep rates low continue, the cost of oil, gasoline and natural gas has continued to rise. This has prompted Ontario gas utilities to sharply increase their monthly charges to customers.
Energy costs should figure into your household budget in a few ways:
- What the monthly heating bills are
- How new the furnace is
- Whether to buy a home in the city or suburbs and how close public transportation is
- What level of insulation there is in the attic