What is the perfect temperature for a water heater?  How do I stop my faucets from pouring out money?

Turn on the hot water in your shower. Turn the hot water as high as it will go with no cold water at all. Give it some time so that the water reaches maximum heat.  Carefully test the water with your hand.  Too hot to do that, then your water heater is set too high and chances are, you're wasting money.

The Department of Energy recommends having your tank-based water heater set to 120 degrees Fahrenheit for most people, but if you’ve never adjusted the temperature on your water heater, it’s probably set to 140 degrees, which is the default setting from most manufacturers.

While there is a very slight risk of promoting legionellae bacteria when water heaters are set at 120 degrees, if you do not have a compromised immune system, you'll be fine.

[Via:  The Simple Dollar]