Don't Let High Heating Costs Melt Your Budget

It's going to be expensive staying warm this winter.

According to a recent report released by the National Energy Assistance Directors' Association, winter home heating prices are expected to rise for all families, reaching record levels for those who use heating oil, propane and electricity to warm their houses. Those who use heating oil and propane, in particular, will be taking a hit to their wallet with an expected 28% increase in heating oil and 30% increase in propane costs. The average family using heating oil is expected to pay $1,834 this year, up $402 from last year while those using propane will see their average cost rise to $1,732, an increase of $384.

Those that rely on electricity and natural gas won't feel the pain quite as much, with single-digit increases forecasted. Those using electricity will pay $883, an increase of 7%, or $58, while those using natural gas will average $881, up 5%, or $50.

While prices will be increasing, you don't necessarily have to pay those average prices -- there are a number of ways that you can easily reduce the amount you spend on heating this winter:

Shop around: Many people still don't realize that they may be able to shop for the best price on the fuel they use. Before you even begin to look at ways to conserve energy, make sure you're getting the best price for the energy you're purchasing. While not everyone has competing energy suppliers available where they live, more and more people can take advantage of this and save 10% or more. Those who use heating oil and propane usually have the choice between a number of suppliers to fill their tanks, and more and more states are allowing competition between electricity and natural gas suppliers, giving consumers a choice and savings here, too.

Get an energy audit: The first place to begin with energy conservation is to get an energy audit of your home. Many utility companies offer this service at a low cost, or even for free. An energy audit will identify areas where heat is escaping, such as around doors, windows and fireplaces, and offer suggestions on how to solve the problem areas. Fixes can be as simple as using caulk, door sweeps, insulation and weather stripping. Some energy companies will even offer to subsidize these materials to encourage you to make the changes and reduce your heating bill. Simply call your utility company and ask if they offer energy audits.