Think couponing is a waste of time? Think again. Taking a moment to clip a coupon or ask for a deal can go a long way toward getting out of debt.
The Federal Reserveâs most recent Survey of Consumer Finances shows that 77% of Americans have some form of debt, with credit card debt being the most common. And, according to financial attorney Leslie H. Tayne, founder of Tayne Law Group P.C., there is no downward trend in sight. With the cost of goods on the rise, and income levels not keeping pace, the Melville, N.Y., lawyer says that people become trapped in the paycheck to paycheck cycle. Their debt severely limits their opportunities â both financially and in life.
Lauren Greutman, Syracuse, N.Y.-based consumer savings expert and founder of That Lady Media, once knew that struggle. With $40,000 in debt and an underwater mortgage, she turned to couponing to slash her grocery bill from $2,000 to $200 per month, allocating those savings to her debt. She coupled her couponing strategies with some side hustles and eliminated that burden in three years.
âBy couponing, you can give yourself a $5,000-a-year raise that you can use to pay down debt or put towards your other financial goals,â Greutman said.
Hereâs how to get your start.
Greutman said that itâs important for you to first learn when to use a coupon and when not to. For example, she pointed out, buying a generic good may still be cheaper than buying a name brand good with a coupon. She adds that you should hold on to coupons until the items are on sale to increase your savings. Consumer.gov takes it a step further and advises you to avoid buying things just because you have a coupon. Itâs not a good deal if you donât want or need the item.
Next, Greutman encourages you to learn the couponing policies of your favorite stores. Do they let you double up on coupons? At one point, she was getting $500 worth of groceries for $40 by taking advantage of triple coupon sales that her preferred grocer ran once per month.
Greutmanâs go-to strategy to get coupons? She emails her favorite manufacturers directly, who, nine times out of 10, send her free products or a high-value coupon. Tayne concurs and often asks companies what deals they have running. If itâs quick and simple, she âloves the idea of trying to pay less.â Consumer.gov says that coupons can also be found in newspapers, magazines, on manufacturerâs websites, or on websites specifically dedicated to coupons.
Greutman offers the following pro couponing tips:
Tayne also likes the planning aspect of couponing. She said that the process helps you stick to a budget because youâre thinking about your purchases before you get to the store. This can prevent overspending and taking on additional debt. The Consumer Financial Protection Bureau (CFPB) encourages you to make frugal shopping a family endeavor and teach your children about the value of using coupons early on.
On her website, Greutman urges you to realize that couponing is a skill that takes time to hone. She encourages you to not give up just because youâre not scoring the mega deals right out of the gate. With patience, couponing, and meal planning, the whole frugal shopping experience can eventually become automatic to you.
On couponing, Greutman said that âshort term sacrifice will give you long term gain.â However, both she and Tayne agree that extreme couponing may not be cost effective due to the time commitment. If the process is quick and simple, it absolutely makes sense to try and pay less, Tayne said. But, she cautioned, âdonât let [couponing] take over your life and impact your ability to earn money, which may be more valuable than couponing.â
Once Greutman mastered couponing, she started her business to help other women get out of debt using the tools that she learned. By doing this, she increased her householdâs income, further hastening the process of becoming debt free. The moral? Your best way to get out of debt appears to be a two-pronged approach of saving money (through coupons or other means) and earning more of it.