yahoo's take on extreme couponing.

[swamp]

finance.yahoo.com/news/Why-Extreme-Couponing-Wont-investopedia-503187681.html?x=0&.v=1

[MN-Investor]

A clarification - Yahoo reprints articles that it thinks are interesting. The original article was posted by a financial columnist at Investopedia. You can find the original article here: financialedge.investopedia.com/financial-edge/0711/Why-Extreme-Couponing-Wont-Work-For-You.aspx

[973beachbum]

I seriously doubt I am extreme about anything but I have used coupons and gotten advice from the people on the WIR grocery game.

Just a few points. I rarely spend more than an hour a week planning anything let alone what coupons to use where. These days there are websites that tell you exactly what is on sale and what coupon to use. It should take me 4 minutes, but I like to play around on the internet so it normally takes longer.

I used to just buy whatever brand X that was on sale because it was on sale. Now after really trying to use the coupons I have found that most of what I buy is name brand products, not some untried strange brand that I might not like. I also since I now have a much better stocked pantry I am also much more picky and can wait till something does go on sale and maybe use a coupon.

One caveat I get very little food with coupons as there aren't as many and a fair chunk are for things I don't buy. Most of the coupons I use are for HBA and bought at CVS. I have used CVS coupons to buy milk or coffee or what not there. That has worked out nice. ;D

[dancinmama]

Once you have cross-referenced your coupons you need to find a binder with slide-in slots and start filing them by item, expiration date and participating store. For the dedicated shoppers this gathering, cutting, printing and cataloging is a part time job taking up hours of each week.

The author obviously is writing from observation rather than experience or extensive research. The anti-coupon articles always depict couponing as taking more time that it actually does.

I have been using multiple coupons and stockpiling for over 24 years. I would NEVER think of spending a SINGLE SECOND of my time on keeping a coupon binder. I NEVER clip/print a coupon(s) until I KNOW that I will be using them. This saves HOURS AND HOURS of time in clipping, filing, and later purging hundreds and hundreds of coupons that were never used.

As far as I am concerned, coupon binders are a complete and total waste of time and money.

[Knee Deep in Water Chloe]

This is a response recently posted on the yahoo article; I've never heard anyone speak like this. Coupons do NOT equate to food stamps.

coupons = food stamps. i my world, coupons are for the unemployed or the poor. It's like taking ketchup packets from a restaurant... VERY CHEAP... OR like using a coupon a date... VERY CLASSY! Hyper-couponing is akin to theft, and companies will halt the practice (oar make 1 cent coupons) because of the abuse hyper-couponing encourages. Ooooh, you got free pampers, you go, girl! Now what, do you have a coupon for a job, or do you just intend to be a parasite on the economy?

[Deleted]

Dancinmama is right that most couponers don't spend hours on the binders. (By the way, those are using baseball card pages.) They write the dates on the inserts and then frequently file them. Multiples may come from family and neighbors, but often couponers just order what they need. I used to have a 2 cent source, but she stopped selling her "service." That is the part that makes me laugh.

Rebating is where the real payback is once you get a decent stockpile . . . or at least it is if you live in a "No Beer/Wine Purchase Necessary" state. Alabama is one as are Utah, NY, and NC, which are where I get most of my forms.

I'm looking at one now that requires I buy $25 worth of Kebab Essentials, which they define as premium meats, fresh produce, marinades, and skewers. They will send me a $15 check (and they really do). So I can pick up steak, chicken, and fresh veggies.

If you wonder, this form defines NBPN states as AL, AR, CT, HI, IN, Ky, ME, MO, NC, NJ, NY, UT, and WV. They even allow multiple receipts, which is nice because the "must buy" period is 7/15 through 9/15.

We go through this every time, but veteran couponers are very enthusiastic about what they do without really deserving the hoarding label.

[Gardening Grandma]

The anti-coupon articles always depict couponing as taking more time that it actually does.

And the coupon divas never depict couponing as "taking only a few minutes" and "saving TONS of money"?

[Deleted]

I save about $5-20 per week spending about 5-10 minutes a week more than normal. Is that "saving TONS of money"? It is a few minutes only, though.

[Apple]

Jul 10, 2011 15:57:01 GMT -5 Knee Deep in Water Chloe said:

This is a response recently posted on the yahoo article; I've never heard anyone speak like this. Coupons do NOT equate to food stamps.

coupons = food stamps. i my world, coupons are for the unemployed or the poor. It's like taking ketchup packets from a restaurant... VERY CHEAP... OR like using a coupon a date... VERY CLASSY! Hyper-couponing is akin to theft, and companies will halt the practice (oar make 1 cent coupons) because of the abuse hyper-couponing encourages. Ooooh, you got free pampers, you go, girl! Now what, do you have a coupon for a job, or do you just intend to be a parasite on the economy?

My ex-bf had a similar attitude toward coupons. He had to use them when he was younger, after his divorce, when he was "poor" and he refused to use them ever again. He'd get those $10 off $50 purchase at Safeway in the mail (I never get them in the mail, I have to find them in a paper) and would stick it on the refrigerator until it expired. A few times I almost took it from him since my grocery bill had gone up while dating him since I'd cook for him at my place quite a bit. He would get coupons for stuff he used all the time that would make the product free, but still refused. It drove me up the wall.

[Deleted]

I used to be a lot more diligent about coupons but have found that, similar to the writer's point, many of them are for processed and junk foods we just don't eat. Others are for brand names and the coupons don't bring the price down to the cost of the generics. If we can't see a quality difference I buy generic. I don't have a problem with using them to try new products as long as it's something we'd use anyway and the net price is good.

If I save $2-$3 on a weekly trip I'm happy. They're just coupons clipped from the Sunday paper; I'm not ambitious enough to get on Web sites to collect them or "Like" a dozen Facebook pages so they can post inane marketig messages along with their coupons.

Last week, though, I got some Ronzoni pasta that was 99 cents as a store special promotion and used a $1.00 off coupon. I love it when that happens!!

[Gardening Grandma]

I used to be a lot more diligent about coupons but have found that, similar to the writer's point, many of them are for processed and junk foods we just don't eat. Others are for brand names and the coupons don't bring the price down to the cost of the generics.

Indeed.
Yesterday at the store, Mini Wheats (DH's favorite cereal) was on sale - B1G1. I had a coupon for $1.00 if you bought two. At that, the price per ounce was still more than the regular price at Costco....... And no time spent searching or clipping.

[dancinmama]

Here's another article about couponing that some may be interested in:

online.wsj.com/article/SB10001424052748704820904575055392244583592.html

[dancinmama]

A few excerpts (in red):

Clipping coupons hardly sounds like the subject of high finance–or even medium finance.

Save a dollar on cat food, some detergent or a couple of boxes of cereal. Who can be bothered? Who has the time?

A growing number of people, it turns out. And they're shrewder than it may at first appear.

Being shrewd is the name of the game. You look for the sales (and they have them almost EVERY week at the drug chains), where you can combine a coupon with a sale and extra store promotion to get something for free that your family uses regularly - shampoo, deodorant, toothpaste, toothbrushes, Q-tips, paper products, and on and on and on. Trust me, the possibilities are endless.

How long does it actually take to clip and use a coupon? Certainly the more you use, the less overall time you will spend per coupon, because so many of the costs–getting flyers, sorting coupons and so on–are generalized. Let's assume you spend a minute per coupon.

Saving $1.44 for a minute's effort is the equivalent of saving $14.40 for 10 minutes'.

Hourly rate: $86.40.

In spite of the fact that I'm pretty darn good at what I do, I feel this is a bit of an exaggeration. The author fails to add any research time (which IS minimal, but still must be counted) or the time and gas that it takes to shop. Sometimes you will go to CVS or Walgreens specifically for a great deal they are having in a particular week. You might go when you're doing your regular weekly grocery shopping or on your way to or from work, but it still takes a little extra time.

Furthermore, money saved comes with an additional benefit. Unlike the money you earn at work, it is tax free. No payroll taxes. No federal or state income tax.

If your marginal tax rate were, say, 20 percent, you would have to earn $108 before tax to take home $86.40. If your marginal tax rate were 30 percent, you'd have to earn $123.

This is key to me. I can spend $1 that my DH earns to buy something or I can cut a $1 bill (a $1 coupon) out of the Sunday coupon inserts. If I use the coupon, that is a dollar that my DH does not have to earn which means no payroll or federal/state income taxes are paid on it. It also frees up that dollar that DH DID earn for other things (in our case fully funding his 401k and paying off high interest mortgages - think mid 80s to late 90s and rates of 7-12.75 %).

Very few of us ever do this kind of math, because we tend to treat low finance differently from high finance, and small sums differently from big ones.

EXACTLY CORRECT. People poo poo the value of using coupons on a regular basis because they THINK it's not worth the time and effort, because after all, you're only saving a buck or two. Well, that buck or two can REALLY add up.

And the individual amounts of money may seem small, but they prove the old adage about tiny acorns and mighty oaks. Someone who saves $25 a week will save $100 a month, and $1,200 a year. Over a lifetime that can easily grow to $100,000 or more–even after accounting for inflation.

I can attest to this from personal experience. I have been doing this for over 24 years on a fairly regular basis. During that time we have been a single income family (we decreased our income by 50% when I took the pregnancy route to "retirement" in early 1987).

DH has always made good money, but it was not until late in 2005 that his salary hit six figures, at age 48. The savings that I got from using coupons insured that we were able to fully fund DH's 401k and helped to pay off over $200K in mortgage debt over a period of about 16 or 17 years.

We relocated to a HCOLA in 2005 and bought our current home (and a pretty darn nice one, I might add) at the peak of the market. Despite that, DH is poised to be able to retire at age 55 next year.

The next time you "look" at a $1 coupon, SEE a $1 bill. It MIGHT make all the difference in how you view them.

[Deleted]

Jul 10, 2011 18:49:24 GMT -5 Gardening Grandma said:

I used to be a lot more diligent about coupons but have found that, similar to the writer's point, many of them are for processed and junk foods we just don't eat. Others are for brand names and the coupons don't bring the price down to the cost of the generics.

Indeed.
Yesterday at the store, Mini Wheats (DH's favorite cereal) was on sale - B1G1. I had a coupon for $1.00 if you bought two. At that, the price per ounce was still more than the regular price at Costco....... And no time spent searching or clipping.

I just got a $1 off 3 hellmans mayos, given that my DH will not eat anything but and goes through a jar a week, why not buy three and get a $1 off? No skin off my nose.

[illinicheme]

Jul 10, 2011 23:21:24 GMT -5 @gin1984 said:

Jul 10, 2011 18:49:24 GMT -5 Gardening Grandma said:

I used to be a lot more diligent about coupons but have found that, similar to the writer's point, many of them are for processed and junk foods we just don't eat. Others are for brand names and the coupons don't bring the price down to the cost of the generics.

Indeed.
Yesterday at the store, Mini Wheats (DH's favorite cereal) was on sale - B1G1. I had a coupon for $1.00 if you bought two. At that, the price per ounce was still more than the regular price at Costco....... And no time spent searching or clipping.

I just got a $1 off 3 hellmans mayos, given that my DH will not eat anything but and goes through a jar a week, why not buy three and get a $1 off? No skin off my nose.

Good lord!!! A jar of mayo a week?!?!??

[Deleted]

Sadly, often yes.

[skubikky]

Jul 10, 2011 19:31:44 GMT -5 dancinmama said:

A few excerpts (in red):

Clipping coupons hardly sounds like the subject of high finance–or even medium finance.

Save a dollar on cat food, some detergent or a couple of boxes of cereal. Who can be bothered? Who has the time?

A growing number of people, it turns out. And they're shrewder than it may at first appear.

Being shrewd is the name of the game. You look for the sales (and they have them almost EVERY week at the drug chains), where you can combine a coupon with a sale and extra store promotion to get something for free that your family uses regularly - shampoo, deodorant, toothpaste, toothbrushes, Q-tips, paper products, and on and on and on. Trust me, the possibilities are endless.

How long does it actually take to clip and use a coupon? Certainly the more you use, the less overall time you will spend per coupon, because so many of the costs–getting flyers, sorting coupons and so on–are generalized. Let's assume you spend a minute per coupon.

Saving $1.44 for a minute's effort is the equivalent of saving $14.40 for 10 minutes'.

Hourly rate: $86.40.

In spite of the fact that I'm pretty darn good at what I do, I feel this is a bit of an exaggeration. The author fails to add any research time (which IS minimal, but still must be counted) or the time and gas that it takes to shop. Sometimes you will go to CVS or Walgreens specifically for a great deal they are having in a particular week. You might go when you're doing your regular weekly grocery shopping or on your way to or from work, but it still takes a little extra time.

Furthermore, money saved comes with an additional benefit. Unlike the money you earn at work, it is tax free. No payroll taxes. No federal or state income tax.

If your marginal tax rate were, say, 20 percent, you would have to earn $108 before tax to take home $86.40. If your marginal tax rate were 30 percent, you'd have to earn $123.

This is key to me. I can spend $1 that my DH earns to buy something or I can cut a $1 bill (a $1 coupon) out of the Sunday coupon inserts. If I use the coupon, that is a dollar that my DH does not have to earn which means no payroll or federal/state income taxes are paid on it. It also frees up that dollar that DH DID earn for other things (in our case fully funding his 401k and paying off high interest mortgages - think mid 80s to late 90s and rates of 7-12.75 %).

Very few of us ever do this kind of math, because we tend to treat low finance differently from high finance, and small sums differently from big ones.

EXACTLY CORRECT. People poo poo the value of using coupons on a regular basis because they THINK it's not worth the time and effort, because after all, you're only saving a buck or two. Well, that buck or two can REALLY add up.

And the individual amounts of money may seem small, but they prove the old adage about tiny acorns and mighty oaks. Someone who saves $25 a week will save $100 a month, and $1,200 a year. Over a lifetime that can easily grow to $100,000 or more–even after accounting for inflation.

I can attest to this from personal experience. I have been doing this for over 24 years on a fairly regular basis. During that time we have been a single income family (we decreased our income by 50% when I took the pregnancy route to "retirement" in early 1987).

DH has always made good money, but it was not until late in 2005 that his salary hit six figures, at age 48. The savings that I got from using coupons insured that we were able to fully fund DH's 401k and helped to pay off over $200K in mortgage debt over a period of about 16 or 17 years.

We relocated to a HCOLA in 2005 and bought our current home (and a pretty darn nice one, I might add) at the peak of the market. Despite that, DH is poised to be able to retire at age 55 next year.

The next time you "look" at a $1 coupon, SEE a $1 bill. It MIGHT make all the difference in how you view them.

I love your response and indeed the author of the WSJ article took a more objective view...JMHO.

[skubikky]

Jul 10, 2011 18:35:27 GMT -5 @athena53 said:

I used to be a lot more diligent about coupons but have found that, similar to the writer's point, many of them are for processed and junk foods we just don't eat. Others are for brand names and the coupons don't bring the price down to the cost of the generics. If we can't see a quality difference I buy generic. I don't have a problem with using them to try new products as long as it's something we'd use anyway and the net price is good.

If I save $2-$3 on a weekly trip I'm happy. They're just coupons clipped from the Sunday paper; I'm not ambitious enough to get on Web sites to collect them or "Like" a dozen Facebook pages so they can post inane marketig messages along with their coupons.

Last week, though, I got some Ronzoni pasta that was 99 cents as a store special promotion and used a $1.00 off coupon. I love it when that happens!!

I don't agree that coupons don't bring the cost down to generics, usually I find that the cost is almost always less than the generics.

i.e. I bought Purex laundry detergent(50 oz.) on sale at RiteAid for $1.97 minus a $1 coupon...that was definitely less than any generic brand in the store or at Wegmans. That is typical of what I find when I use coupons. Actually...when combined with store discounts(20% Wellness at RiteAid) and other in-store discounts...I get many items for free(excluding tax).

I like that you use coupons as it suits you which is great, not everyone wants to spend more than just casual time using them...that's cool.

[Clifford]

Since I am a spreadsheet type of guy, I calculated (over time) how much my wife saved in coupons/hour. Bottom line was that she "makes" about $15/hour clipping coupons - although I should up that into pre-tax dollars as mentioned above.

Earth-shattering? No. Not bad for a little time playing on the internet and using kindergarten skills to cut and sort? Yes.

[GRG a/k/a goldenrulegirl]

I use coupons when I am able to do so, but dietary restrictions limit the number I can use because we also eat very few processed foods.

As for CVS and RA, I've given up. I'm tired of finding empty shelves for the deals I've (and obviously someone else who's quicker on the draw) put together.

[Martivir]

For us it is just a few dollars a week most of the time. But for us that's a few more dollars to spend on the more expensive stuff that we need because of my son's food allergies. Sometimes it's a good week and I save $20 or so. I do use the coupon binder because it works better for me than filing the inserts. Less space since I can't use half the food coupons anyways and easier to hide from my toddler.

And I don't even bother with Walgreens or CVS. My closest ones are a massive pain and not worth the aggravation. But I have a "hidden" Rite Aid that no one ever goes to because it's tiny and three blocks from another one that, again, no one goes to. Not sure why because it's nice, cashiers are very coupon friendly and they almost always have what I need on the shelf.

[soon2bmomof3]

My stockpile is at the point where I've slowed down on couponing. So I've skipped the last couple of weeks of CVS and Walgreens deals. I've found that the store near my work are better stocked than the ones in my neighborhood, so I just wait to go on Mondays or Tuesdays. Not sure what I'm going to do when I go on maternity leave though...I'm not driving in 12 miles just to get free toothpaste

[dancinmama]

Jul 11, 2011 10:02:30 GMT -5 @soon2bmomof3 said:

My stockpile is at the point where I've slowed down on couponing. So I've skipped the last couple of weeks of CVS and Walgreens deals. I've found that the store near my work are better stocked than the ones in my neighborhood, so I just wait to go on Mondays or Tuesdays. Not sure what I'm going to do when I go on maternity leave though...I'm not driving in 12 miles just to get free toothpaste

soon2b: I think everyone who uses coupons has slowed down because, quite frankly, the drug chains deals have not been anything to write home about lately. Many of us are not effected because our stockpiles of freebie drug chain stuff are pretty good as a result of what we have done over the last couple of years. I am just going with the flow. ;D

[dancinmama]

Jul 11, 2011 8:46:11 GMT -5 GRG a/k/a goldenrulegirl said:

I use coupons when I am able to do so, but dietary restrictions limit the number I can use because we also eat very few processed foods.

As for CVS and RA, I've given up. I'm tired of finding empty shelves for the deals I've (and obviously someone else who's quicker on the draw) put together.

goldenrulegirl: Remember, at CVS you can ALWAYS get a rain check and they will force print the EBs when you redeem the rain check, so you're NEVER out of luck when it comes to the CVS deals.

Too many people have the knee jerk reaction that coupons are not worth the time and trouble because they are all for junk food. The truth of the matter is that MOST of the coupons that I have redeemed over the past 3-4 years (probably at least 80% of them) have been for non-food, non-perishable items that will yield a profit in drug chain rewards. I then turn around and spend those free, for-profit rewards on food items that we do use that are carried in drug stores: coffee, condiments, soda, oatmeal, eggs, etc. I rarely use any of the coupons that are for frozen, convenience foods.

Example: CVS will have Blink Tears for $7.99 and giving a $7.99 EB, making them free. But many times there will be a $4 coupon right on the package. Now that $7.99 item is only going to cost me $3.99 AND I'm still going to get the $7.99 EB so I am making a $4 profit in CVS money. Every week I scan the CVS ads for a sale on food items that we use and I use my for-profit CVS money to purchase them. It's a backdoor way to get food items for free, but IT WORKS!! ;D