In continuing on with our series looking at , here are some of her tips on milking your money with a few of my thoughts thrown in as well:
Go on the Cash System –One consumer trend I have seen revitalized is the idea of shopping with cash. When my husband and I were first married, we had $40,000 worth of consumer debt and sometimes didn’t have enough money for groceries. That’s when we went to the cash system by taking out the budgeted amount for groceries in cash and putting it in an envelope. We had a visual reminder of how much was left for the week, it helped us stay on budget, and we didn’t go further into debt by using our credit cards. –Ellie Kay
I can't even begin to tell you how much money we save by shopping primarily with cash. There's just something about handing over green stuff which makes you more aware of just how much you're spending.
We once did an experiment where we paid almost exclusively with our debit card for a few months all the while attempting to stick to our usual budget. We found, to our surprise, how much easier it was to spend a "little here" and a "little there" without even so much as realizing until it came to the end of the month and all of these little purchases were added up.
If you've never tried going cash only for purchases like groceries, clothing, gifts, eating out, etc., I'd highly encourage you to try it out for at least a few months and see if it makes any difference in how you spend and how you consider whether or not a purchase is necessary. You just might be surprised! Plus, it's a whole lot easier to stick to a written budget if you only have cash from an envelope to spend instead of a card to swipe!
Play the Price Matching Game –I’ve worked 40+ hours a week for years with a house full of kids, so I don’t have time (or energy) to drive all over town to shop various sales. I can benefit from all the sales though, by going to a store that matches the lowest price. I save gas, time and money by going to a store that will match competitor sales. –Ellie Kay
While I've found it's more cost-effective for me to shop at two stores (Dillon's and Aldi) rather than price-matching at Wal-Mart, I definitely think everyone should consider going the price-matching route–especially if you'd prefer to keep it simple and only shop at one store.
As always, I think it is very important that you factor in the time involved in bargain shopping. After all, time is money, too. So be careful to evaluate the return on your investment of time as well as money. If you've been bargain shopping for a few months and you're taking four hours per week to plan your shopping trip, clip your coupons, and shop at various stores and you're only saving $20 or $30 for that time spent, it's likely not worth it. I personally think you should work up to saving at least $30-$40 per hour and buying things you truly need or have a good use for, for it to be worth your while. (Of course, you are free to do whatever floats your boat, I'm just sharing what my rule of thumb is!)
Go Beyond the List –Most families know that creating a list and sticking to it can save you as much as 30% on your grocery bill. But did you know that as many as 50% of the sales or price rollbacks for the week are not advertised in the sales circular? This means that there may be clearance items throughout the store that are not on your list. Give yourself permission to snatch these up if they are a super good value. One week, I found deodorant on sale when the store was remodeling the antiperspirant aisle. There were a variety of brands marked down to $1, including my favorite brand. I matched my “$1 off” coupons with those clearances to get 16 packages of deodorant for free! –Ellie Kay
I disagree with Ellie Kay a little bit here in that I think you shouldn't bust your budget in order to snag a good deal. My philosophy is that if you can't afford something it's not a good deal. However, if your grocery budget allows no wiggle room for stocking up on unadvertised sales, you might need to raise it a tad or learn to be creative in rearranging your plan of attack at the store.
For instance, I plan our $40 menu each week before going to the store based upon what we have on hand and what's on sale at the store. This way, I know we'll have plenty to eat for the week. However, I often will find a great deal on something while I'm at the store which was not on my list–be it an unadvertised deal, marked down meat or produce, or something on clearance. I often know that I have $3-$5 in wiggle room so I can snag the extra deals without needing to cross another item off of my list. But sometimes I don't have as much wiggle room or the items I found are more than the extra room I have to play with.
When this happens, I usually just consider whether I can re-work the menu a bit or see if there are any non-essentials on my grocery list that I can cross off. If not, then I remind myself of my rule of thumb (if it's not in the budget and I can't squeeze it in, it's not a good deal for me) and pass over the deal. There are always plenty of other good deals to be had later on so it's not the end of the world if I have skip over a few. (Of course, like I said above, you are more than free to disagree with my personal philosophy and do what works for your family.)
I'd love to hear your thoughts, if any, on Ellie Kay's tips above. Do you agree or disagree? What works for your family? To see all of Ellie Kay's Smart Shopping Tips, go .