Dear Mary: Does one save more electricity by turning an appliance off and starting it up again when needed versus simply leaving it running? I am thinking about my computer, the long-life light bulbs in our light fixtures, and the TV. Thanks. -- John B., e-mail

Dear John: Funny you should ask. I've been doing a lot of research on this topic and will be writing more in depth in the near future. The simple rule of thumb is to turn it off -- the computer, the peripherals, lights and all other appliances and devices that draw electricity -- when you're not using them. That applies to all lights if you will not be returning to the room in five minutes. It's pretty much a fallacy that it requires more energy to turn the lights on than to allow them to stay on, even when not in use.

Dear Mary: I'm 28 years old, and my husband and I have an annual income of $48,000 after taxes. I am currently in college and taking out student loans. I am in the process of paying down some other debt and will be done with all debt except student loans and the mortgage before I finish school. Should I start paying off my student loans now, even though I still am taking them out? Should I wait until my other debt is gone (in about a year) and then start making bigger payments on them? Or should I start saving money now to pay for school in cash next year, even though I have student loans this year? -- Elizabeth B., e-mail

Dear Elizabeth: You need to be doing both. The loans you have taken already but on which you are not required to begin paying are accruing interest each month. Because you are not paying that interest (and are not required to), it is tacked onto the loan amount, causing your loan to grow month after month. Think: compounding interest. I recommend strongly that you begin paying the interest on all of the loans you have. It shouldn't be much, but this will keep your principal balances at no more than the amount you borrowed.

You also need to be saving cash, as you suggested, so you can start paying as you go. You don't want to come out on the other end with a degree and so much debt that you're worse off for having received your degree. I hear from many for whom that has become the situation, and it is downright heartbreaking! I'm happy to know you are thinking about these things now while you still have options. Good luck!

Do you have a question for Mary? E-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
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