Cutting Costs and Clipping Coupons
Days unemployed (8). Jobs applied for (44). Company/Job search websites joined (7) Responses(3). Interviews scheduled (1) Networking opportunities created (3).
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One key task upon sudden unemployment is to cut costs wherever possible. The wife and I certainly have had our heated arguments about spending priorities and needs. This last budget talk was no exception.
If I were single, I’d strip to a loin cloth and live off the crickets that seem to be infesting my kitchen, just so I could write a book about it later. Being married, I have to be a little more realistic about what my family can (or will) go without.
Today I contacted my debtors and was able to postpone payments on a personal loan for two months and on my student loans for 12 months. Upon providing proof that I am eligible for unemployment, the government will also pay the tax on the subsidized portion of my loan (approximately 2/3). My credit card companies weren’t able to do anything temporary for me, and given the low minimum payments I didn’t see the need to close them out and enter into a consolidated payment plan. It is, of course, asinine to only pay the minimum on credit cards, but if it comes down to it, I can get by for a couple of months. (I did, however, learn that one was somehow now over the limit and would accrue penalties at an alarming rate if I didn’t correct it soon) I was able to identify a few unnecessary features on my cell phone bill that I could cut. I found a better rate on my auto insurance. So much better in fact that I’m kicking myself in the pants for not shopping around sooner. I’m getting more coverage AND now I’m getting renter’s insurance: both for less than HALF what I was paying before for auto insurance alone. My new company doesn’t have to spend as much on cleaver advertising gimmicks… they just provide a great rate instead.
That adds up to a 20% savings of my previous monthly expenses. Considering unemployment is less than half my previous income (which just barely covered my monthly expenses before), I’m still far from in the clear, but I say that’s a successful day’s work.
That leaves food and rent as the other remaining major expenses. The house we’re renting has more space than we need, but we’re actually paying less for more than for our previous place. Either way, the immediate expense of moving far offsets any longer term savings. Unless I remain unemployed far longer than a couple of months, we won’t actually be saving anything by moving. We are, however, considering using the extra space to take in a friend who’s looking for a temporary residence. We have plenty of room. That would bring us to just over a 25% cost reduction if it worked out.
A word on clipping coupons: Imagine the scenario where a wife stumbles in the door, loaded with packages. “Look how much I saved,” she beams, showing the receipts to prove everything she bought was on sale. “I couldn’t give a damn what you saved,” says her husband, glowering. “How much did you friggen spend?”
Just because you use a coupon, doesn’t mean you’re actually saving anything. A good majority of the time, they’re just ways to promote a particular product which probably isn’t selling because it’s so grossly over priced that even the coupon promotion doesn’t make it cost effective. Coupons are great, if they’re for something you were already planning on buying. Otherwise, be wary. Same with the club card savings. Just because you can buy one get on free for a particular brand or package, doesn’t mean its the best bang for your buck, either. Is buy one get one free at $2 for a 3 ounce package better than $1.50 for a 5 ounce package? I don’t know. I must have slept through math, otherwise I might have saved a little more when I had a job and wouldn’t have to be clipping coupons right now.
Most supermarkets I shop at these days put the price per ounce or pound or serving or whatever unit is most common to that product on the shelf price signs. The lower the price per unit is, the better the deal regardless of the package size. If you can couple one of those deals with a coupon, even better, so it’s still a good idea to clip them and bring them into the store. For example, I recently noticed an in-store ad for 5 packages of snack crackers for $5. Well, this included the bite-sized version which had 1.2 ounces more per package than the regular sized. Six ounces means six more servings for the same price. When you’re counting your pennies, six servings is a big score.
You also need to be careful when looking at other deals in those weekly grocery circulars. Often there is a minimum purchase required to get the advertised sale price. It’s also a good idea to bring the flyer in for reference.
Coupon clipping and shopping around takes time and savvy to make sure you’re actually getting a deal, but this week I knocked 25% on my bill.
Another minor cost-saving idea: I haven’t had cable for years. Instead, Netflix for $9.99/month gives us all-you-can-stream access (particularly helpful for the three-year old; educational programming, no commercials!), plus one movie at a time, and there is so much current tv content online that it’s not an issue.
PS – Kick butt on the interview
You’re preaching to the choir! Unfortunately, this is one of those cricket-eating things for the rest of my family…
I just want to let you know that right now, I am eating a Noah’s Bagels everything bagel deli sandwich with a pickle and potato salad, for almost $8.
I am completely aware that this is what I consider a luxury because I have a job right now.
Oh, and I wasn’t convinced by Netflix until I got it. Do the free trial and maybe you can win over everybody.