A great way to save money on your water heating costs is to buy an energy efficient water heater, but what if you can't afford it right now?

They're not cheap - a 40 gallon Energy Star rated water heater, about the smallest and least expensive you can find, starts at around $500 and that doesn't include the installation cost.

Here some ways to make sure your hard-earned dollars don't go down the drain.

According to the Department of Energy, your water heater accounts for as much as 25-percent of your home's energy costs.

"One of the easiest ways to reduce water usage is to check for leaks. A lot of times we leave these unattended. Not only do you have the cost of the water, but also any potential damage that might be caused if the leak goes undetected,” says Angie Hicks, consumer expert.

You could also dial down the heat on your washing machine.

"One of the best ways to save energy when it comes to the washing machine is to wash your clothes on cold. Most clothes can be washed on cold and they are going to come out perfectly clean. Also, on both the washing machine and the dishwasher, it's important to use them when they are full, but not overly full. When they are overly full, they are going to be less efficient as well,” says Angie.

Here's another tip: lower your water heater base temperature to 120 degrees. Your shower will still be plenty hot. You can also install low-flow faucets and shower heads.

"Low-flow fixtures can make a big difference. They can cut anywhere from 25 to 50 percent of the cost of your water bill. But if your house was built before 1992, you likely don't have them. And the rule of thumb to check whether you have them is to see if they produce more than 2 ½ gallons of water per minute. So place your bucket underneath your faucet and see how much is coming out,” says Angie.

The EPA says the average household wastes 11,000 gallons of water a year because of running toilets, dripping faucets and other types of leaks.

There is such a thing as "good water loss". Drain a quart of water from your water heater tank every three months to remove sediment at the bottom of the tank. That sediment slows down heat transfer and lowers the efficiency of your water heater.