Josh Elledge - Chief Executive Angel
If you're an established couponerwho uses both newspaper and digital coupons, vouchers for other discounts, and generally takes advantage of every deal possible in order to save money – that's amazing. You've got a solid strategy that is positively impacting your financial picture. You've probably spent a lot of time organizing and fine tuning your approach to couponing, but it's just as important to do the same with all the savings you bring in. If you don't, some of the benefits of couponing could be wasted. In order to ensure you get the most for your efforts, check out these seven effective strategies for utilizing your coupon savings.
1. Track Your Savings on a Spreadsheet
For yourgrocery coupon savings, use your receipts to come up with a total amount saved on food for each trip, then set up an Excel spreadsheet to track your efforts. If you saved $20 on a purchase from Staples by using a coupon, put that in. If you saved $50 from a mail-in rebate from Office Depot, include a line for that, as well. Remember that if you don't know how much you're actually saving, it may be a challenge to fully take advantage of your couponing efforts.
2. Set-Up an Additional Savings Account
Set up a dedicated bank account specifically for these savings. Simply open an additional account at your bank of choice, or consider an online bank account such as Ally, where the fees are often cheaper.
3. Start an Emergency Fund
Consider using your savings for unexpected expenses. You never know when your child may fall ill, or your car or computer could break down unexpectedly. A healthy and robustemergency fundmakes dealing with life's curveballs much easier.
4. Devote Them to Credit Card Debt
Putting your coupon savings toward credit card debt is also an excellent strategy. Whether you're currently carrying a balance of $1,000 or $10,000, your goal should be zero. Saving money with coupons is great, but you've also got to address other areas in your life where money is being wasted – credit card interest is certainly one of them.
5. Put Them Toward Retirement Savings
Another great place to direct your savings is toward retirement investing. According to data from theEmployee Benefit Research Institute, over one-quarter of American workers have less than $1,000 saved and over half have less than $25,000. If you're in either one of those groups, change that by putting your savings to good use. Boost your 401k plan contributions or open a Roth IRA – both are great places to stash funds for the future.
6. Start Investing Money for Your Kids Higher Education
If you have children, you could also use your money to start a 529 college savings program. You can open one with a nominal deposit (sometimes as little as $25), then maintain it by setting up automatic deposits. In 34 states plus the District of Columbia, tax breaks are offered on your contributions.
7. Use Them for a Vacation Fund
If you like to get away often, use your money for a vacation fund. Nothing's worse than returning home from a getaway knowing you have hefty credit card debt to deal with. On the other hand, nothing is better than jetting out of town when you know you're doing so with your hard-earned savings.
Using coupons to save money is great, and effectively utilizing those savings is even better. Just be careful that you really need everything you purchase with a coupon. For example, $100 off a laptop is only a good deal if you really need a new computer, otherwise it's just wasting money. Instead of catching coupon fever and spending too much, make sure you exercise restraint – even if it seems like a deal you can't pass up.
What do you use your coupon savings for?
Paul Stephens is a frugal couponer who shares tips for family budgeting, savvy spending habits, and healthy living.
