The present work aims to reduce the cost of energy for a residential building using a computer based analytical software. For analysis purpose many steps has been taken and investigated to reduce the energy consumption in the house hold, especially the segments that consume more energy. Detailed numerical analysis has been done for estimating the amount of savings in power demand and resulting paybacks period of these significant power saving steps. Following segments or power saving steps are investigated in the present study for a residential house situated in Jaipur, Rajasthan. Illumination: Replacing conventional incandescent bulbs by Light Emitting Diode (LED) lights, Electronic appliances: Replacing some old appliances such as refrigerators by high star rated appliances, Heating Ventilation and Air conditioning (HVAC): Effect of installing thermal insulation on power consumption by HVAC System, Hot water uses: Effect of replacing electric geysers by solar water heaters in the house. It has been concluded that about 59 % of reduction in electricity bill has been achieved by implementing affordable energy saving steps. This study is useful for every family in India. It has been found that from total amount of reduction in electricity bill about 35 % has been achieved by thermal insulation only.