GREAT TIPS!!!! 7. Turn down the thermostat on your water heater. It's probably set at 140 degrees F to shorten the wait time for a steamy shower. But 120 or even 110 degrees is plenty hot. Savings: $30 or more per year on gas, oil, electricity, or propane. Bonus: Your kids are less likely to scald themselves if the max water temperature is 120.