How Can Your Budget Survive a Recession?
Coupons. Yes, coupons are extraordinarily effective in helping you to manage a budget during economic downturns.
I grew up in a middle class household in the 1970s. Times were tough for everyone with an oil crisis and extreme inflation. My parents were very thrifty with their money, and one of their strategies was couponing. Even as times improved in the 80s, my parents continued their habits. To this day, my father brags about what he can buy this week because he saved that amount with coupons.
When the impacts of the Great Recession spread over a decade ago, I found myself divorced and single parenting two children on my single income. I had no choice but to create a strict budget and seek out innovative strategies for making my dollars stretch further.
I turned to couponing.
Does couponing really work? How much can you really save when a coupon is worth only 30 cents or a dollar? If you strategize and plan long-term, you can save hundreds or even thousands of dollars.
The key is not to use single coupons that have small values. Rather, the idea is to use multiple coupons when items are on sale to compound the value of the coupon. For example, your grocery store may sell shampoo for $5, but this week the store is marking the price down to $4 for a sale. If you have the store’s “frequent buyer” card, you save that dollar.
What if, however, you also have a coupon for $1 off that particular brand of shampoo? You can then receive another $1 markdown and buy the shampoo for $3 instead of the regular $5. You have saved $2.
Understand? Now, let’s multiply those savings. What if you have 5 coupons for $1 off? And, you buy 5 bottles on sale for $4, but you also use your coupons? Instead of paying the regular $25 you usually pay, you spend only $15 on those 5 bottles.
What if I told you, that some stores even DOUBLE their coupons up to a certain amount? Usually that amount is $1, but some stores choose $2. So those 5 bottles for $15 could cost you only $10 if your store doubled the coupon. You have to choose your stores wisely.
Do you spend the money upfront? Yes, but you can save a significant amount of money by planning this way and buying for the future. If you buy 5 bottles of shampoo, you likely won’t need to shop for it again until another sale hits the store.
Apply the same concept to other items such as frozen foods, canned beans, pasta, cereals (always great deals and coupons for these!), bagged snacks, and other bath items.
If you are saving on on multiple items, not just shampoo, you are increasing your savings exponentially.
What are the steps?
- Do your research
When I began couponing, I often watched the show “Extreme Couponing” for fun. I marveled at the huge grocery hauls these addicted shoppers purchased for one dollar or fifty cents. While I knew I was not going to spend the hours they spent planning a grocery trip, I thought I could learn from them.
I researched coupon websites, like CouponMom, and read about how to organize coupons and plan a shopping trip. The site lists national store sale items and matches the coupons for you. This makes starting out easy.
If you shop at a regular store, subscribe to the “frequent buyer” program. Learn what day of the week their sales begin and scour through the sales flyer to see what items will be on sale before you make a shopping trip. Also, review the store’s coupon policy. After the show, “Extreme Couponing” came out, some stores limited how many coupons you could use at one time.
2. Plan Ahead
Gather coupons. Each week, you can access coupons from your grocery store app, newspapers, or online websites. Choose only coupons for items you will actually use or donate.
Match your coupons with your chosen store’s sales flyer. What items are on sale that you also have a coupon to use? Purchase ONLY items when you have both to save the most money.
Check your coupon expiration dates. These days, coupons usually expire in 2–3 weeks. You need to find sales for those items within that timeframe to save the most money.
3. Plan Your Shopping Trips
Sometimes, this is the challenging part. Shopping on the weekend can be exhausting for anyone in the workforce due to crowds. When you are focused on exact amounts of items and prices, it can become chaotic. Choose a day when your store is not very crowded and when you can take your time.
Organize your coupons (some people have entire binders with them!). I usually use paper clips to separate my coupons into categories. Make a list of the items you will purchase and whether or not you have a coupon for them.
Read coupons carefully. Sometimes coupons are only good if you purchase a certain number of items or a new version of the product.
4. Maintain a Stockpile
Find space in your home to keep your stockpile. If items are organized, you will know exactly when you need to gather more coupons and shop for replacements.
Does this actually work? Couponing was key for my financial survival. On my best single shopping trip, I saved 80% of the regular price on my entire cart.
Are you doubtful? Try it for yourself and see what you can accomplish.