Couponing

When I lived in St. Louis, I was obsessive about coupon clipping. Mainly because I subscribed to the Sunday paper. But I quickly realized that while I was using the paper for coupons, I was never actually reading the paper, so it started to feel like a waste. The papers would start to pile up because I spent my Sundays preparing for class the next day, and then throughout the summer, studying for the bar exam.

Well, my student days are thankfully over, but when I moved to Washington, D.C., I didn't bother to subscribe to the Sunday paper. I figured I wouldn't end up reading it, and the environmentalist in me struggled with the idea of having all that extra paper (even though I recycle, of course). It seemed like a cost that I didn't really need.

But I wasn't thinking about the coupons. (I also wasn't thinking about the money I would save by always using the comics to wrap presents.) Given the rising food prices, I think this is an idea I should revisit.

I often struggle with whether or not coupons are really worth it. I've always believed that you should only use a coupon on something you would buy anyway - don't think of it as a "deal" on something new. Unfortunately, it seems like most coupons out there are for new products hitting the shelves. Of course, there's nothing wrong with trying new products, especially if it's a type of food you consume regularly. For example, if you eat a granola bar for lunch every day and the paper has a coupon for a new kind of granola bar, it doesn't hurt to check it out - provided that with the coupon, the new granola bar is cheaper than your old standard.

(This is probably a given, but be sure to watch your base price. How much is in that package? What are you paying per base unit? I'm lucky enough to shop at a store that lists the unit price on the shelf tags so I can determine which item is the best buy, but if you don't, be sure to do the math in your head or carry a calculator. Trust me, it's worth it.)

The other thing is that I'm always trying to eat healthier, and it seems like so often, coupons are for processed foods. I'm not going to find a coupon for apples or other produce. But even though I do try to be healthy, I admit that I'm still stuck on a number of processed foods, and there are coupons on things I use, such as various canned soups and vegetables, and occasionally rice and other grains as well. Besides, I need things like detergent and toothpaste too, and there are often coupons for those products.

You can also print coupons online, though I have sporadic luck with those. Sometimes it's products I use, but most of the time, it's nothing I want. Conveniently, I don't have to print those. The big sites are SmartSource and CoolSavings.

The CouponMom is a highly touted resource for coupon usage. The site has a database of coupons from the Sunday paper (you do still have to buy a paper) to help you figure out what's on sale and when you'll get the best deal combining coupons with a sale.

A number of bloggers have been talking about The Grocery Game. This is a subscription based site ($1 for a 4 week trial, then $5 a month). Every week, you get a list of the lowest priced products at your supermarket matched with coupons and specials. Of course, to do this, you need to stock up on the coupons, as frequently, the coupons in this Sunday's circular will be best used in a few weeks to match up with sales. I haven't tried this yet, but I think that I will sign up after I return from vacation. A summer experiment of sorts.

I also read a lot about the Drugstore Game on various blogs. This is played at CVS or Walgreens, though I admit, I only pay attention to the CVS discussions, as that's what's nearest to me. The theory is that by combining coupons and products with ECBs (Extra Care Bucks - basically coupons for $X off your next purchase, no matter what it is), you can save hundreds of dollars. This oftentimes means buying products you wouldn't normally buy, just to get the ECBs. I see the point - an example would be if I buy this shampoo with this coupon, I spend $2.00, but I get $3.00 in ECBs. So I technically got a dollar for the purchase. It's just hard for me to make that expenditure, especially if it's something I don't normally buy. I'll have to look into it further though, especially since I work within walking distance of a CVS - I could play on my lunch break!

Don't forget coupon codes for online shopping! I've mentioned Ebates here before - it's where I start when I'm shopping online. Not only do you get cash back, but they often have some great coupon codes as well. And of course, before you submit an order, do a quick Google search for StoreName Coupons. Who knows what you might find!

Want more info? Check out these links:
The Zen and Art of Coupon Clipping
Coupon Tips and Tricks That Can Cut Your Grocery Bill By 80% (some great ideas here!)

Some lunchtime math

A co-worker of mine just put an offer on a condo, and commented that he might have to pick up a part-time job to make the payments (and still have spending money, I assume). While my first thought was whether or not he should be making the purchase, I then began to think about ways he could save money.

This particular co-worker buys his lunch every day in our cafeteria. Let's estimate that he spends $35 a week on lunch. He likely spends more, but I'm playing the estimation game. On first glance, that seems an easy way to save $35 a week.

But wait. If you don't buy your lunch, you have to bring your lunch (because giving up meals is not a healthy way to be frugal). Brown bagging it is still not free. Bringing a sandwich or leftovers would be pretty frugal. I've been eating a lot of rice, beans, and cheese with a side of veggies lately. That's not expensive.

Let's be honest though. 75% of the time, I have a microwaveable meal for lunch - usually a Lean Cuisine or a Weight Watchers Smart Ones. Why? I like them, they're filling, and they're easy. And relatively low-cal.

I only buy these when they're on sale (well, most of the time). Lean Cuisines typically get knocked down to $2.50, and Smart Ones to $2.00. We'll use the higher price for this estimate. If I brought a microwaveable meal every day in a week, it would be about $12.50 a week. Ok, that's less than $35.

But wait. I don't only have one thing for lunch. Let's use today's lunch as the standard. I also have a Coke Zero, some baby carrots, an apple, and a granola bar. If I bought the Coke Zero full price (I never do), it would be 50 cents a can. I'm going to estimate the carrots are about 50 cents as well, and the apple cost $1 (I bought five very large, very delicious apples at the market for around $5 this weekend). The granola bar cost around 60 cents.

Adding that all up, that's $5.10 for the day, or $25.50 a week. That means my friend would save less than $10 if he ate like me. And like his purchased meal, this requires very little prep time (other than putting the carrots into a baggie and putting it all into my bag for lunch).

Of course, this estimate could be horribly skewed. First off, aside from the "main dish," that calculation assumes that everything was bought full price. Secondly, my "lunch" gets consumed throughout the day and covers both the meal itself and a morning and afternoon snack. If my friend is buying or bringing snacks, that's an added cost.

Still, that's a savings of at least $40 a month. Enough so that he wouldn't have to take a part-time job? Probably not. But I wonder if there are other little easy ways he could save a few bucks. Dollars add up!

Save Money, Make Money

On March 3, iVillage is beginning a 30 day Save Money, Make Money Community Challenge. Click the image above and sign up to receive money-saving ideas by e-mail. It's geared towards women, but I think that we could all benefit from some financial ideas. Even if you are already an incredibly savvy saver, it never hurts to be reminded of the things we ought to do and know.

Finances and Food

I live alone, and when I get home from work, the last thing I want to do is take the time to cook a meal for myself, especially knowing that I'll have to clean up from all of the cooking. I solve this in one of three ways:

• Eat a quick fix meal, such as pasta, a sandwich, or when I'm really lazy, a bowl of cereal
• Eat a frozen meal, such as a Lean Cuisine
• Cook on the weekends and then freeze and reheat the leftovers.

In recent months, I've been doing the first and the second significantly more than the third. I've decided to do my best to change that. Every weekend, I want to try to cook something and then store the leftovers in the freezer, to be eaten later. The hope is that after a few weeks, I'll end up with a decent selection so I'm not eating the same thing day after day.

One of my sticking points lately has been that I'm trying to reduce my food costs, and when I'm planning to make a big meal, I always feel like I spend so much money. I'm still stocking my kitchen after moving a few months ago, so I always have to buy so many food items that a number of people have already stocked in their pantries.

So today, I decided to experiment. I wanted to make a chicken and veggie stew that I love, and I knew that I didn't have any of the ingredients at all. So off to the store I went. I spent approximately $25 on ingredients. The stew makes 5 generous servings (and healthy too - it's a Weight Watchers recipe). So that's $5 per meal. $5? I can get a Lean Cuisine for cheaper than that, especially when they're on sale for 4 for $10.

But wait. I didn't actually use everything I bought. I bought pre-packaged chicken breasts and maybe used a third of the package. I had to buy spices (I still can't find a good local place to buy them in bulk) and I've got a lot of those left. I used two tablespoons of the container of corn meal. Tons of that left. And I've got garlic left too. So doing some rough estimating, I probably paid less than $2.50 per meal. Just less than what I pay for a Lean Cuisine, and only then if I manage to buy it on sale. And it's a recipe that I absolutely love. Plus, if I want to make the recipe again, because I do have so many of the ingredients left over, I would have to spend around $4.

Clearly, the end result of this experiment is that it is absolutely worth it to cook more often. It's cheaper, it's healthier, and I have to admit, I have some pretty delicious recipes that freeze incredibly well. And if I can't bring myself to cook during the week, I'll just have to set aside time on the weekends or my days off. I'm tempted to cook something else tomorrow so that I have both lunches AND dinners for the week!

The Today Show: Give Yourself a Year End Bonus

I just caught a segment on The Today Show about personal finance. This was called "Give Yourself an End of the Year Bonus."

The segment started out talking about how the majority of people didn't get a year-end bonus this year (I didn't, but my co-workers did - I haven't worked there long enough). And while you may not have gotten a bonus, there are ways you can give yourself a bonus by saving money in the coming year. They gave three suggested ways to give yourself a bonus.

1. Pay attention to spending

• save 15% of your income
• pay attention to what you're buying

I don't think any of this is news to people who pay attention to their finances, but it is always a good idea to remember these two elements. I know how much money I save in a month, but I'm really not sure what percentage of my income I am saving. That's something I plan to look at when I get home from my Christmas vacation. As for paying attention to what you're buying, I think that's something we all can take another look at. Some days, when I go to the grocery store, I am very exacting about what I buy. Other times, I just buy at random and may not be making the best choices, either nutritionally or financially.

2. Change the allowance on your W-4
This was probably the most eye-opening part of this segment. While I inevitably end up breaking even or owing money to the government due to investment income, apparently, the average tax-refund is $2200! That is $2200 that you're loaning to the government for free! You could very easily save that money in a high-yield interest rate yourself and have even more money when it's tax time.

I do know people who like the fact that the government holds the money for them because it keeps them from spending it. If your spending is that uncontrolled, then perhaps letting the government hold your money is the best plan, but I have to believe there are other ways you can keep from spending your money.

3. Cut your taxes

• Put money into your 401k
• Take advantage of Flexible Spending Account

These are two great ways to reduce your taxable income, and great ways to save. The recommendation was to put the full allowable amount into your 401k, but at least put in up to the match. I agree with the match part, but from everything I've read, you should put the rest of your income into another investment account, because you will make significantly better returns.

A lot of people don't like to use FSAs because if you don't use the money by the end of the year, you lose it. It is worth it, however, to sit down and figure out just how much money you will use on these types of expenses. At the very least, figure out what you pay for any medications you use year-round and for your annual physical. Those are guaranteed expenses. It might not be a huge reduction, but I figure any reduction in your taxes is a good thing.

Overall, these ideas made me think, but didn't tell me anything I didn't know. But I'm sure a number of people have benefited from these savings tactics.