Purchase a water heater blanket
According to the Iowa Energy Center, an insulating blanket will cut energy loss 25% - 45%. Assuming you spend $25 per month heating your water, it is safe to say you could save $5 - $10 per month just by installing one.
Not everyone needs a water heater blanket. New models of water heaters are already insulated. How to tell? Simple... just place your hand on the outside of the water heater. If it's warm, then it needs to be insulated.
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