According to the American Council for an Energy-Efficient Economy, the average household spends more on water heating than any other energy cost besides heating and cooling. That water heater tank hidden in your closet or down in your basement is working non-stop to keep the water warm and to heat up the cold water that refills it after each use. You don’t need to switch to cold showers to save money—you can reduce your costs greatly by taking a handful of simple steps.

Upgrading your attic insulation can dramatically reduce your heating and air conditioning costs, improve the value of your home, and add to your day-to-day comfort. While this project may cost you $200 or more, once it’s in place it will allow you to save money on your energy bills for the life of your home. And more good news is that your insulation material may qualify you for a federal tax credit.

The average household dedicates about 5% of its energy budget to lighting every year, with much of the cost owing to the few lights that are on the most. So switching those frequently used bulbs to light-emitting diodes (LEDs) is the place to start. Find the 10 lights you use most, and the lights you use at least one hour per day, and make the change.