Unless you're on an equal payment plan, you don't know exactly how much your energy bill is going to be every month.
The number one expense is heating or cooling your home. The number two expense is heating your water.
According to the Department of Energy, water heating accounts for 18% of your utility bill.
There are four ways to cut your water heating bill: use less hot water (not a surprise), set your thermostat to 120 degrees, insulate your water heater (that's about a $20 fix), and get a more efficient model.
There was an idea for a hot water heater that could cut your energy expenses in half. Sounds good, almost too good. And it was.
"He was telling people huge stories of how this water heater was going to conquer the world, " says Warren Shumway.
Warren believed the idea of an instant hot water supply could revolutionize the home appliance business. "I had gone on the internet to research the company to see what the stock was selling at, see where they were at and everything seemed to be good."
He decided to invest in the product which was still in the planning stages. Warren knew people who worked for the company and they told him they needed his money to finish the product prototype. "I gave them almost everything I had, with the intent that it would be back in 90 days."
More than three months passed and Warren didn't get his money back and no progress was made on launching the water heater. Come to find out, the company wasn't using the money the way they promised.
"One of the defendants actually had a custom home built and his payment was over $10,000 a month just for that home," says Nicholas Klingerman, Asst. Attorney General. There were more than 150 victims.
Whenever someone promises there is no risk and you'll get your money back quickly, that right here is a big warning sign. Again, it's one of those too good to be true business deals.
So what about other business opportunities for products in development? Kickstarter is probably the most well known funding platform for projects. Their website claims 102,000 projects have been successfully funded.
But Kickstarter makes it known that creators can't offer financial returns or equity, or solicit loans, so backers cannot financially profit. That's a big difference from the story you just heard.
So how do backers get rewarded then? They get a copy of what's being made, a limited edition, or a custom experience related to the project. Something to take note of, Kickstarter doesn't evaluate a project's claims, resolve disputes or offer refunds.
You decide what's worth funding and what's not.. So how do you make a good choice? Look at the project page details - the verified name, the comments from other backers and don't miss the risks and challenges section.
I t details how far along the project is and must show a true prototype - not just an artist's rendering.