He Doesn't Look Like A Coupon Guy

On a beautiful summer evening a dozen years ago, I was doing some grocery shopping after work. As a bachelor in my mid-20's, the cart was brimming with essentials - Diet Mountain Dew and frozen pizzas. Preparing to pay for my cornucopia of nutrition, the cashier asked if I had any coupons. Before I could answer, the gentlemen behind me said, "He doesn't look like a coupon guy." I didn't know how to take that. Was it a compliment? I was dressed to impress in my finest khakis (no-iron... as a single man, I didn't iron!). Was it an insult? He could have been rich-shaming me because I went with stuffed-crust pizza. Regardless, that comment has always stuck with me. The irony is, I actually am a coupon guy! I think the internet has plenty of content on maximizing coupons, and I hope my readers can leverage Google well enough to find "the best deals", so I'm not going to go down that rabbit hole. Instead, I want to talk through the mentality of coupons, discounts, and sales and how to make them part of your personal finance journey.

Play the Game

Coupons, discounts, and sales can be a very valuable financial tool, if used properly. I use them at restaurants/stores/websites fairly regularly, and think everyone should take advantage of any savings they can get. It's not being "cheap" or "greedy" - if the business is offering it, why not use it? But remember, it's a two-sided coin. Businesses provide those incentives to drive sales, and they're darn good at it. With artificial intelligence and machine learning, retailers track shopper's behavior to determine how to get you to spend your money on their product or service. You'll get a coupon out of the blue with a large discount at a store you haven't patronized in a while. Or if you leave something in your "cart" on a website for a few days, you'll suddenly get emailed a coupon for that item. To make informed purchasing decisions, be aware of these practices and use them to your advantage! Wait to make large purchases until a store's annual sale occurs. The classic "early bird" specials at restaurants aren't just for your grandparents! Be savvy about when you buy, as it could lead to substantial savings.

Did You Really Need That?

The temptation to buy something just because it's on sale is strong. But ask yourself: do you really need that? If it's something you'd buy regularly at full price, go for it! But don't let it drive you into irrational spending habits. Big-box membership stores are famous for their insane quantities of goods at a "discount". There's nothing wrong with buying in bulk, especially if it truly saves money, but think before your purchase! Does this product have an expiration (food, medicine, etc.), and can you use it before that expiration? Can you practically utilize whatever you're buying, or will it just take up space in your home? If it's a non-essential, how does this purchase align with your budget?

The Business Case for Thrift

Reducing your overall spending is a lifestyle. Making conscientious decisions, taking into account what I've covered above, will pay off in the long run. Oh, you don't believe me? My dear friends at the Bureau of Labor Statistics reported the average American household spent $61,224 in 2018. I know all of my readers are far above average, but for this exercise, you come in right at the mean. Let's assume, through your smart spending, you could save just 1% on all your purchases. That's $612 in savings per year! If that doesn't get you excited, look at it as paying for a nice, long weekend road trip. Or, if you're really trying to show off your financial savvy, roll that fresh dough into an emergency savings or retirement account. The way I look at it, with a little effort and awareness, you can utilize coupons, discounts, and sales to bolster your financial goals. Hey, maybe you can be a coupon guy (or gal), too!