May 24

Are Coupons Worth the Time? 5 Reasons They Are!

catfood

Sometimes I meet coupon non-believers. You know, the types that think that coupons are a waste of time. Usually the non-believers tell me that they don’t clip coupon for several reasons. The conversation sounds something like this…

  1. “Coupons are only for processed food and we don’t eat processed food”
    My Response: You don’t eat any processed food? Not even Chef Boyardee or Cheez its? Just kidding. Many people don’t know that there are coupons for a lot of non-processed food including organics, meat, dairy and even vegetables. We eat a lot of tomatoes and make a lot of pasta sauce, so we’re always thrilled when the Muir Glen $0.75 coupons come out on coupons.com. The cans of tomatoes retail for about $1.50-$2.00 so free or $0.50 after a doubled coupon at the grocery store.
  2. “Coupons aren’t worth the time”
    I don’t think I’ve ever come across a person who wants to spend more money instead of less. But if you’re that person, then maybe coupons aren’t worth your time. I’m a pretty frugal person, so I can save myself even $5.00 at the grocery store using coupons, I will. Taking a quick look at the deal sites and blogs and matching my grocery list with coupons take as few as 20 minutes. If you’re not an extreme couponer and don’t aspire to save 99% each trip, then a simple clipping of your weekly coupon inserts will take very little time. Just clip the coupons for the products you use and toss the rest.
  3. “You can’t eat shampoo and paper towels”
    Nope, but the money I don’t spend buying shampoo and paper towels,can be spent on food that I do eat and enjoy. Or better yet, I can save the money I would have spent buying shampoo and put it into my emergency fund.
  4. “We just buy generic, it’s cheaper than name brand”
    If you don’t coupon, that might be true. But if you do coupon, you can almost always get name brands for cheaper than the store brand. There are some products that we buy generic because we like them better, but for the products we enjoy that are name brand, we can almost always pair a sale and coupon and get a much cheaper price. You remember the Johnson & Johnson baby products I got for $0.50 a bottle? Even if I bought generic brand lotions and powders, I couldn’t have gotten them for that cheap.
  5. “But why would you buy products you don’t use?”Because they are free, and people in America are hungry. I might not personally eat tuna fish, but if I can buy 10 cans for free I will. I give them to friends and family or I donate them to our local pantries. Lets just say, the boxes of cereal, razors and coffee that I’ve dropped off at our local shelter have made me a very “popular” visitor.

While I don’t recommend going “crazy” with coupons or getting “extreme” and stockpiling 15 years of toilet paper, I do strongly encourage people to learn about couponing and to buy products they use with coupons.

Curious about the cat food and treats? I bought them this past weekend at Pet Smart. I was lucky enough to match a sale with a coupon. When I got to Pet Smart there was a coupon that gave me a free bag of treats when I bought a bag of food (what luck!). Here’s what the transaction looked like:

Item Regular Price Sale Price Minus Coupon Total Spent
4 Pound bag of dry cat food $7.99 $5.99 $5.00 $0.99
4 Pound bag of dry cat food $7.99 $5.99 $5.00 $0.99
4 Pound bag of dry cat food $7.99 $5.99 $5.00 $0.99
4 Pound bag of dry cat food $7.99 $5.99 $5.00 $0.99
Cat Treats $2.39 n/a $2.39 $0.00
Cat Treats $2.39 n/a $2.39 $0.00
Cat Treats $2.39 n/a $2.39 $0.00
Cat Treats $2.39 n/a $2.39 $0.00
$41.52 $23.96 $29.56 $3.96

Yup, you read that right, $3.96 for 16 pounds of cat food and 4 bags of treats. Our cats are big eaters and will finish a bag in a little under a month. The expiration date on the food is next year, so you can bet I’ll be back at Pet Smart buying a few more bags to stock up. Why pay $8.00 a bag when I can get them for $0.99? Once I buy enough for our kitties, I’ll be buying some for our local shelter.

May 22

How Do I Consolidate My Student Loans & What Does That Mean?

loan
Shortly after I finished undergrad, I started getting letters in the mail from loan companies asking me if I wanted to consolidate my student loans. As sad as this sounds to the 30-year-old me (cringe), the 22-year-old me, was like, “Huh? what does that mean? What’s the benefit of consolidating my loans? Will that save me money?”

**Disclaimer-I’m by no means a student loan expert, I’m just a fool who got myself into $30k of student debt, then paid it off. Use your best judgement and do your own due diligence** With that being said, here are a few of the things I learned about student loan consolidation…

What Does Loan Consolidation Mean?

Well pretty much it is what it sounds like. You consolidate multiple debts from multiple companies into one loan. To grossly oversimplify student loan consolidation: the lender that you chose to work with pays off the balances of all of your outstanding student loans. This leaves you with one student loan, one interest rate, and one check to write each month. Companies who service student loans usually require that the borrower (you) have at least $7,500 of outstanding student loans to consolidate. If you have less then $7,500 worth of loans it’s not generally worth their time to process your application.

What Loans Can I Consolidate?

You can consolidate most federal loans, including subsidized Stafford, unsubsidized Stafford, and Perkins loans (the three types of loans that I had). Loans obtained from your state and/or private loans obtained through banks are not eligible for student loan consolidation. If you have private loans you may be able to consolidate them with a private servicing company or bank. Thankfully, I was able to complete college without taking out any private student loans.

Researching Lenders.

Reaching lenders is not really as difficult as it sounds. Most companies have a website with basic comparison charts detailing the benefits they offer in comparison to their “competition”.  I also set up a time to meet with a financial aid assistant at my college. During the appointment we talked about how much debt I had, lender consolidation requirements, interest rates and the benefits and drawbacks of consolidating my loans.

Choosing a Lender.

Three things were important to me when I was choosing a lender:
  1. e-payment. Ability to pay online. I’m sure all companies offer this option now, but “back in the day” when I consolidated, not all companies offered this option. Additionally the company I consolidated with offered a $0.25% interest rate deduction for signing up for auto deduction from my checking account).
  2. Incentives for paying on time. Yes it’s true! Loan companies actually lower your interest rates for paying your bill on time for an extended period of time-36 months in my case.
  3. Lowest interest rate. Self-explanatory.

Would I Consolidate again?

Yes. Consolidating my loans was quick, easy and relatively painless. It decreased the number of bills I had to pay each month, thus reducing the chances I might forget to pay one. It also saved me from the hassle of communicating with 3 different loan companies (have you ever tried to talk to loan officers on the phone?, ugg! that’s all I’m saying). Overall I had a pretty good experience working with folks servicing my student loans. Well as good of an experience as you can have when you owe someone $17.5k!

“Non”-Advice.

  • Do research first! Weigh the costs and benefits of consolidating your student loans. Take into consideration the length of time you’ll be paying them back and the interest rates. If you plan to pay off your loans aggressively (which I’d recommend-I am the student debt survivor after all!) then it might not be worth it to consolidate.
  • If you’re going to pay off the loans over the next 10 years and you’re someone who tends to forget to pay bills, or has a lot of bills and might miss one, consolidating is probably a smart decision.
  • Last, but most important, never pay your bill late! Late payments will kill your credit and damage your ability to borrow money in the future (think mortgage!).

Did You Consolidate Your Student Loans? Would You Consolidate Again if You Had to Do it Over?

May 20

Sometimes I Don’t Play Nice: Killing My Debt

boxing gloves

I’m a nice girl (most of the time) and my mother taught me to play nice with others and hold my tongue when I have nothing nice to say. But it’s hard to talk when you’re holding your tongue and sometimes my inner mean girl is just dying to bust out.

This often gets me in trouble. Other times it’s incredibly helpful. I’ll save you the details of the former, but I can tell you that the later helped me pay off $30,000 in student loan debt.

Because I paid off my loans and lived to tell the story, when I hear people saying that they’re in over their heads and debt and want to give up, I want to scream at them. Not in a nasty way, in a “I’m going to shake up your world a little bit and make you think about what you’re saying, because you’re too smart to let that interest eat up your future savings (that was a mouthful).” kind of way.

My Student Loan Mess

I guess I get frustrated seeing other people feeling so bad, because I used to be in their shoes. I used to feel the same way… like debt was unavoidable, so I may as well just pay the minimum payments and learn to live with it. Fortunately I didn’t just “learn to live with debt.”

I got mad really freaking pissed at my student loan debt and I decided I wasn’t going to let it take a free ride on my back for the next 10 years of my life. Paying back the debt one small payment at a time just wasn’t something I was willing to do…

ax

No, I wanted to kill my debt. Get out the ax, chop it into little bits and bury in my backyard (I don’t have a backyard and I don’t have an ax for anyone who was just assessing my stability).

Fortunately, my other “homicidal debt plan” involved working harder, budgeting more and picking up extra side gigs. Much less violent, but just as effective.

The Turning Point

I believe that each of us has a turning point when we make the decision that we no longer want to live with debt. You know, that moment when you’re so “sick and tired” of being “sick and tired” that you take control of you debt and get on the path to debt freedom.

For me, that moment came when I learned that I’d be in debt for 10 years and would pay back over $11,000 in interest over the life of my loan. I knew that I wanted to reach certain goals including buying a home, having a family and starting my own business and I knew that those goals would turn into more complicated decisions if I had $30k hanging over my head.

So I got aggressive with my debt. I started pushing it around a little bit and told it not to get comfortable living at my guest room. I told vacations, clothing and fine dining to stop courting me and I focused solely on paying off my debt for a couple years.

When I wasn’t kickboxing my debt into a corner I was working extra jobs, planning my meals and clipping coupons. I made a budget and I stuck to it. And in the end the “pay off” was enormous. Emotionally, spiritually and financially I finally felt free. A feeling that was priceless and well worth the temporary sacrifice.

Are You Fighting Debt? What Made You Mad Enough to Fight?

Images: Markhillary and Naval History & Heritage Command

May 17

Oh Baby Baby-Baby Shower Gifts on the Cheap

OLYMPUS DIGITAL CAMERA

Gift for My Cousin’s Baby-Cost $7.00

It’s probably just my age (the big 3-0) but everyone I know seems to be knocked up. Friends, family, co-workers… Apparently I roll with a  fertile crowd. With so many people pregnant, the cost of baby shower gifts was really adding up. A shower here, a shower there and I’m broke. Ok I’m exaggerating. But with all the baby showers, wedding showers and bachelorette parties I’ve been invited to (love you guys, don’t stop the invites) I’m feeling a little cash strapped.

Sure I budget for gifts, but nobody could anticipate so many gifts “coming due” at the same time.Throw in the regular birthdays and holidays and my budget has taken a beating.

Instead of skimping on gifts or sending impersonal gift cards or cash, I’ve decided to get a little strategic about my gift gifting. Thanks to coupons and a crafty ex-roommate who taught me to knit, I’m revolutionizing the way I think about baby gifts. Here’s how:

  • Make My Own. 1 Skein of yarn ($4.00 or less when I use a 50% off coupon at AC Moore or Michaels) and about 6 hours yields an adorable little baby sweater. I have several big boxes of yarn that I bought when I was obsessed with knitting in college, so I’m still working through that yarn. I typically knit on the bus and while watching TV at night. When you figure in the time…could I buy something cheaper, yes. But it wouldn’t be a handmade original made with love by me. I also make baby clothes and booties, and sew burp cloths and baby quilts-see below (when I have time).
Jack quilt

Quilt Made for My Nephew

  • Buy On Sale. Whenever I see baby stuff (or any type of toys or games) on deep clearance I buy them. I stock up on baby items and stick them in my closet for upcoming showers. I recently picked up a bunch of cute Easter onesies for $1.00 a piece (none of them said Easter, they were just pastel colors) to keep for future gifts.
  • Use Coupons. Sales combined with coupons are my favorite way to get free and really cheap baby stuff. Johnson and Johnson baby products often go on sale and combined with a coupon you can get them for free. I recently found a sale on baby lotion, body wash, and powder. All of the items were $2.00 a piece. Combined with a $0.75 coupon that doubled at the grocery store I got them for $0.50 a piece. They typically retail for $4-6.00 each!
cat coupon

Even the Cat Knows Coupons Are Serious Business

  • Give Coupons. Sounds a little strange, but diapers, formula and food can get really expensive. A few years back a friend of mine was feeding a pretty expensive formula. She was always asking me for the formula coupons from my paper. She had her shower after the baby was born, so to surprise her, I gathered a bunch of papers from my friends and clipped a whole stack of the $5.00 coupons for the formula she used. She told me it was the best “gift” anyone gave her.

Once I buy and make all the gifts, I put it them in a basket and tie it up with a big ribbon. Easy Peasy and really fun. I’ve received really good feedback from friends and family who have loved their baby gifts.

How Do You Save Money on Gifts? Do You Make Gifts?

 

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