What to Do with Your Coupon Savings

If you begin to capitalize on the secrets of Coupon Queens, you will soon begin to save a good amount of cash! I have been couponing for less than three years now and I have saved about $15,000 in that time. Wow! That’s a lot of money! The first few months of my couponing I didn’t really have a plan for the money I saved. In fact, I blew most of it, which is what usually happens when you don’t have a plan.

You can leverage your coupon savings to drastically improve your family’s finances, IF you have a good plan for that money. There are several good things to do that found money. First, you should have an emergency savings fund for your household of at least $1,000. Why? This is your safety net that catches you when life happens (which it always does) – the car battery dies, the furnace goes out, you need to take your child to the emergency room for a skate boarding accident and have a $150 co-pay. Having that $1,000 emergency fund will give you peace of mind that you don’t have to charge your emergency to a credit card. Your ultimate goal should be three to six months of living expenses in your savings account. In this economy where layoffs are a real possibility, that’s a smart thing to do.

Did you know that you can make 18% on your money? How? By NOT paying 18% to the credit card companies! Once you have your emergency fund of $1,000 in place, it’s time to attack your credit card debt with your coupon savings. Many credit cards are charging exorbitant interest rates, which eat away at your income every month. So start with your smallest balance card and “attack” the little one first. This will give you a quick success and keep your momentum going. My husband and I are now debt-free, except the house – no credit cards, no car payments! Our next goal is paying off the mortgage, which should be accomplished in a year or two.

Now does this mean that you can’t have any fun with your coupon savings? Of course not! Allocate 10 – 20% of your coupon savings for something FUN for yourself – a treat from Starbucks, a manicure, a new bottle of perfume. This will be your reward for coupon clipping and bargain hunting! If you are already out of debt and have a three to six month emergency fund, save the other 80 - 90% for a bigger splurge! If you’re like me, you might have your eye on new Coach purse, a fabulous pair of shoes, or a tropical vacation! Put your coupon savings toward something that matters to you and your family.