Do you cut coupons? Well there is a practice known as “paying yourself” with the savings. Sometimes this can really pay off. But this practice also has a darker side and can sometimes cause you to spend more. Should you do it? Well, it depends. In this three part series, I’ll talk about what it means, how to do it, and what are the pros and cons.
What is paying yourself in coupon savings? Well, it is the practice of setting aside any money that you save by cutting and using coupons. In general, that money is then used to pay you for the job of cutting, organizing and using those coupons.
For example, let’s say that you cut a coupon for $.75 off a pack of paper towels. You go grocery shopping and use that coupon to make your purchase. You then put that $.75 (or $1.50 in the case of double coupons, or $2.25 in the case of triple coupons) back into your pocket as spending money. Or, you might earmark that coupon money in a special account, until it is grows large enough to spend on something expensive on your wish list.
You can decide to pay yourself with just your coupon savings or with a combination of the coupon savings and the “bonus buys” or sale item discounts.
There are a couple of ways to pay yourself with your coupon savings. One practice is an immediate payoff. When checking out at the grocery store, and before handing over your coupons, you ask the cashier to give you a subtotal. Then have the coupons credited and ask for cash back in the amount of the savings. You can then put that extra money in an envelope to save for a special treat, from a latte to a trip to Disney World.
Another way to to pay yourself with coupon savings is to keep all of your grocery receipts for the month and then total up all of the coupon savings. Then transfer the same amount of money into a separate account that you use for your extras.
In the next article about paying yourself with coupon savings, I’ll explore the reasons you should make this practice a part of your frugal lifestyle.
Mary Ann Romans also writes for the Computing Blog here at Families.com where she shares everything from the latest news on technology to cool downloads and fun websites.
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