If I told you that you could make a 462% annualized return by investing in a water saving shower head, you might tell me to take a hike. With the stock market in the tank, you might be tired of hearing about another investment where you can make huge returns with little or no risk. No way, right?
The truth is, with water getting more and more expensive every day, especially for those located in the southwestern United States, investing in water saving devices, such as low flow shower head and faucet aerator, is a good choice.
For example, let’s say you live in a 2-bedroom house with 1 other person. Let’s also assume you and your fellow housemate use 300 gallons of water each day (150 gallons is a commonly used metric for daily water use). Multiplying that daily water use by 30 days gives us our monthly water usage of 9,000 gallons. Finally, let’s assume that the shower head in your bathroom flows at a rate of 2.5 gallons per minute, a very common rate for a modern shower head.
|150||gallons of water typically used by one person in one day|
|2.5||gallons of water that flows through a standard showerhead in one minute|
|40%||average savings of a low flow shower head over a standard one|
|$55||average amount of money saved in one year by switching to a low flow shower head|
After being convinced by my pitch, you go out and purchase a new high-efficiency shower head for $50. This new water saving shower head flows at a rate of only 1.5 gallons per minute, a 40% improvement in water efficiency! Multiplying your total monthly water use by the percentage of water used by shower heads (around 20%), gives us the number of total gallons used by our shower head, or 1,980 gallons in this example. Since your new shower head is 40% more water efficient, it will save us 792 gallons each month!
Now, we need to quantify those saved gallons, in order to calculate how much money that is saving us. Out here in California, water costs about $0.006 per gallon, or a sixth of a penny. The new shower head saves you 792 gallons per month, multiply that by $0.006 and net savings is $4.69 per month or $56.22 per year. If the expected life of this new shower head is 5 years, it will cost you $10 per year, yet you are saving $56.22 per year. A 462% return on your money!
In addition, the less water that flows from the shower head, the less water that needs to be heated, which saves you heating cost on your electricity or gas bill depending on your setup.
Andy is a 30-something New Yorker who turned his financial life around. He took charge of his finances, got out of debt, and is now working his way toward financial success. He is the owner and publisher of WorkSaveLive.com.