Coupons are often touted as great money savers and the greatest way to save on groceries, household supplies, even clothing and home construction. Need some eyeglasses? There is certain to be a coupon for it. Whatever your needs, you can find a coupon for some supplier.

The way that coupons are touted by some finance and budget advisors, you would spend half of your Saturday scouring the internet and newspapers looking for the best deals and clipping coupons. This is a waste of your time! How much will you really save if you clip all of the coupons that you find for items you like or need?

Firstly, look at what the deals are that each coupon shows. Now ask yourself if you really need the items on the coupon. If the answer is “no” then you aren’t saving anything, since you are either wasting money on something you don’t need (so you are throwing money away), or you have just wasted your time with the coupon. Don’t clip it or give it a second glance. Coupons are really just advertisements that are used in order to get new sales or promote customer returns and loyalty. And they are effective advertising!

The key with coupons is to know ahead of time what you need and stick with that, only. Most people will use coupons for groceries, as these are the most common coupons that we see. And they are the easiest to find. They lure you from grocery store or brand to another. And sometimes they include special offers that entice a person to buy more than what would normally be needed or used. For example, the grocery store that I shop at often has a special marked down price on items if they are bought in certain quantities, such as $1.00 each if bought in groups of 3; $1.28 for a single item. If you don’t need 3 of the items, why would you buy 3? You’ve just spent $1.72 on something that you didn’t need, and are likely to throw at least one of those three away. This means that you would have spent $1.50 each for the two that you did use. So where are the savings? Of course if you were going to buy the 3 items in the first place, then you will save.

This same grocery store has a large bulletin board posted directly inside the entrance of the building filled with coupons that you can tear off and use for the trip you are going on that day. This is very clever of them, as all of these items are then advertised and the coupons often entice people to buy items that they wouldn’t otherwise. But you won’t fall for that, will you?

The point is to not use coupons except for items that you would already buy!

In order to do that you have to have certain strategies whenever you go shopping or even looking for coupons. The first thing is to make a list of what you need. Complete the list before you look for coupons. Then when you look for coupons seek only those items that are on your list! It doesn’t matter if you see a great deal on something that isn’t on your list that you might like. It isn’t on the list, so you don’t need it. Don’t buy it! Don’t even think about buying it.

Advertisers love coupons and special offers, because these things really do get people to buy things that they don’t need. Take a look around your house and the homes of your friends. Guaranteed that you will see many things there that are never used – probably aren’t even thought of – and serve no purpose. But they looked cool at the time, maybe they were a fad, the advertising for them was good, and they weren’t expensive. And that’s why they were bought. And how much money over the months and years is wasted on buying things that aren’t needed? Do you really want to keep following that pattern?

Coupons and special offers are useful. They allow you to try new brands that you wouldn’t normally buy. [We all already know about brand names being overpriced.] This really won’t make a difference to your pallet, but it can make a difference to your budget, if the special offer or coupon makes the brand name cheaper than what you normally buy. And that is always a good thing!

Remember, there are three steps that must be followed:

1. Make a list
2. Find any coupons that are on that list only.
3. Cut your cost by using the coupons on items you would already buy.

Saving money is more than just buying the item that has a lower sticker price. There are other costs involved that people don’t always examine.  How much does it cost to go to a certain store, versus going to the one closer? What about your time – what’s that worth? These things, and more, need to be taken into account when you’re comparing items. Here are a few examples…

Electric versus Disposable Razors
Yes, disposable razors are a lot cheaper. This saves instantly on cash flow, which may be worth it for that alone. But consider the long term advantages, too. Shaving with an electric razor costs very little in power, so little that it is likely more expensive on water alone to shave with a disposable. But we’ll ignore that, since we can’t measure it. A good electric razor will cost about $160. Some say they only last three years, but I’ve never had one last less than 5 years. So, 160/5=32. That’s about $32 per year for a really good electric razor. I spent about $25 a year on disposables ( I buy bulk packs that last months). Okay, so I save about $7.00 right there. But I also have to spend more time using the disposable. I don’t use soap or shaving cream/foam, only hot water, so that is no expense. And it takes more time to keep buying the disposable razors.  But I have a fairly thin beard, so the disposable razors last longer with me.  If someone had a thick beard, it would likely be about the same cost per year for either type of shaver. In that sense, it is best to get what saves the most time and is easier on the skin. Therefore for most men the electric is probably the best bet, based on that. And even then, it’s so close that it really doesn’t matter.
Conclusion: pick what you like most.

Making Bulk Foods to Save Money
Some people love the idea of making enough meals in an evening to eat all week. And others hate the idea of eating the same thing five, six or seven days in a row. If you end up going crazy, is it really worth saving a few dollars? Instead, try cooking up a variety of meals in the same evening, with perhaps a similar theme. This will give the variety that is craved, but still save the time (at least a little) and the money (for sure) on buying lunches and so-forth that the bulk cooking session requires.

One thing I do for this is cook up a big pot of pasta and about three different types of meats and vegetables to go along. Then I can make a couple of different casseroles, one or two more easy sauces, and have a few different vegetables on the side. And I have enough meals to get me through the work week, without having to eat the same thing every day. And it really only takes about five or ten minutes extra to add the variety in meals. And my costs are still low, because I use frozen vegetables or have fresh veggies on the side each day. Frozen is cheaper than fresh, but sometimes the fresh are just so good they’re worth it!

Conclusion: making one huge bulk dish isn’t worth it. Mixing it up in one session saves the same $$ and keeps you sane with only a little more time spent.

These are just a couple of examples. I’m sure that there are lots more that people can think of. The idea is to critically examine the tips that people give you and see if those tips work for your lifestyle and are really going to save you money. They may not work for everyone!

What it is, is the person doing the budget each month is working on a cash only budget (no credit cards), and is not permitted to use the debit card from the bank. This is done purely to learn budgeting and is an exercise that may or may not be followed long term. At the beginning of each period, which is usually a pay period (when pay cheques are given), all the income is taken and put into different envelopes. Each envelope is labeled according to what the money is for, such as rent, groceries, cable, transportation, etc. Due dates of bills are also written on the envelopes.

The person managing the budget must be aware of how much is in each envelope and track the contents properly. Each envelope is then used only for what it is labeled to be used for. Of course, using these in conjunction with a calendar is a good idea, that way bills aren’t missed. And most bills are then paid either at the counter of the billing company or in person at the bank. It’s kind of a basic system for those who have never managed to understand budgeting or used for people who need a system that has restraint built right into it.

Keep in mind that this system does not allow you to use any credit cards whatsoever! You are restricted to the cash in each envelope. I kind of thing this is a good idea for those learning, and I will definitely use it for my kids when they are old enough to understand. What do you think?