On Rebates, Deal Sites, and Consumption
Mrs. Picky Pincher, a fellow blogger and regular commenter here, wrote an interesting post recently about why rebate/deal sites make her super uncomfortable.
As I understand it, her main gripes are the fact that they aren't worth the time and that they encourage consumption.
After I read her post, I felt inspired to write my own thoughts about the topic, so, here we are!
I can definitely relate to some of the feelings she has about rebates/deals (we're talking about things like Ebates, Swagbucks, Ibotta, Inbox Dollars, shopping deal sites, etc.).
In fact, my reservations about those types of sites are the reason that I'm a frugal blogger, not a deal blogger. There's a lot of affiliate money to be made by promoting deals and bargains, but like Mrs. Picky Pincher, I don't think those things are the backbone of a financially responsible lifestyle.
Do I like freebies and occasional deals and cashback programs? Yup.
But that's not the foundation my frugal philosophy is built on.
Instead, I'm way more interested in things like contentment, mindful consumption, waste avoidance, DIY, repairing vs. replacing than I am in chasing bargains, which is why that's mostly what I blog about.
On the other hand, I think there are some rebates/deals/points that have their place.
Anyway, here are four somewhat random thoughts on the topic.
1. A deal shouldn't cause a purchase.
Mr. FG and I always use a reward credit card, and I use cashback sites like Upromise, Ebates, and TopCashBack. But we always, always use these systems to buy things we'd buy anyway.
The credit card rewards don't bring about increased levels of consumption for me; they just provide me with rewards for the consumption I was already going to do.
Southwest airline miles for buying my groceries at Aldi? Yes please! Cashback on work clothes I was already going to buy for Mr. FG? I think I will.
The travel rewards from our credit card were a large reason that we were able to send Joshua and Mr. FG on a California trip for just $500 out of pocket (airline tickets, car rental, hotels, food, and all). And we got those rewards just by making everyday purchases and paying the card off every month in full.
But deals and rewards are only truly frugal when they're applied to a budgeted-for purchase that was already going to happen.
2. You don't have to choose between deals and non-consumerism.
At this point in my life, I don't have much time or energy for chasing down a lot of deals, but that's partly because I have more money than time right now.
For a number of years, though, that wasn't true (even when I had four small kids!). While I cooked at home, gratefully accepted hand-me-downs, vacationed off-season and so on, I did also do more deal hunting.
In those days, I did programs like Inbox Dollars, I signed up for free trials that gave rewards, I ordered Christmas presents for my kids when ecommerce started up and companies offered $25/$25 purchase discounts, and so on.
It wasn't that I was becoming an avid consumer...we just didn't have a lot of money to work with, and small discounts and deals made a big difference for us. I used those programs to buy things that were needs, and also to provide us with a few luxuries we couldn't afford otherwise.
(For instance, I remember getting some free cereal with doubled coupons, and the boxes had vouchers for free movie tickets on them. Theaters weren't something we could much afford then, but we were able to go with the free tickets.)
So, even though I do less deal-hunting than I used to, I'm hesitant to be too judge-y about it, given that some of those programs/deals were super helpful for us back in the day.
When you have some income margin, it's easy to be all, "Those $5 surveys aren't worth anyone's time.". But when you're working with a small income, a $5 check is nothing to sneeze at.
3. Sometimes a deal doesn't look like a deal.
A lot of the really frugal choices out there don't come dressed with a "50% off!" label.
For instance, high-quality items frequently cost more up front, but then end up being cheaper in the long run (my Vitamix, for example).
The $75 bike on Craigslist might not come with any cashback or rewards, but it's still going to be cheaper than the brand new $500 bike.
The $50 washing machine repair job is far less expensive than a new washer that's on sale (even with credit card rewards!).
The food at Aldi (which has very few sales or promotions) is almost always cheaper than the sale food at other grocery stores.
And of course, skipping a purchase is always cheaper than buying an item you don't need (even with a deal).
4. Freebie/deal hunting shouldn't come first.
If you want to have the largest impact on your financial situation, focus on the big stuff first. If you're busy deal hunting and but you eat out every night, that's not a winning situation.
Or if you're super into signing up for free samples, but haven't bothered to shop around for car insurance, that's a little backwards.
Take care of the bigger stuff first, and then if you have extra time and energy, feel free to do some deal-hunting. But don't mix up the order.
(Related: sometimes upping income is also more important than freebie/deal hunting. But I know upping income is not always possible.)
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I'd love to hear your thoughts about this topic. How do you feel about freebies/deals? What role do you think they should play in frugal living?
This is a lovely post, Kristen! I'm a big believer in your #1 ... if it wasn't something I was already planning to buy or use, I don't clip the coupon to begin with!
You speak to my heart, Kristen! Haha. This is why I love reading your blog (and have been for years!) Any specific advice for a 27 year old working mom who is planning to quit working after her next pregnancy? I could use some tips on getting myself prepared/finding some supplemental work from home income. Thanks!
Devour "The Complete Tightwad Gazette". It's a dated classic now, but the parts on being a SAHP still resonate. Buy it used if you can; look for the edition with the light blue cover. Its a compliation of the first three books, plus bonus material. Check your library first, but it's definitely one you want to own.
Thanks! I'll look for
....it.
MoneysavingMom.com has lots of work-from-home ideas. HTH!
I completely agree with what you wrote! I also try to consider the amount of time it takes for me to hunt down deals/coupons/freebies. If it's going to take hours and hours of my time, that time would be better spent pursuing other things (such as increasing income, professional development, or a hobby I enjoy).
I regularly clip coupons and use them, and for the longest time, the coupon use basically paid for the Sunday paper they came in. Then, I started noticing that the same coupons that came in the Sunday paper were coming to my mailbox on Wednesdays...wait a minute. No one here is reading the paper. Bubbie reads the funnies, I clip the coupons, Hubby will ask me to save it, then never get around to reading it. What were we buying it for? I cancelled the subscription and still get the dang coupons on Wednesdays! And my coupon use is almost always for stuff I would buy anyway - tp, soap, shampoo, cereal...But, if I notice something is cheaper without a coupon, for about the same quality, the cheaper thing gets purchased. A lot of times I think it's the psychology of it, not the actual savings. Consumerism should be driven by need and practicality. At least, for my budget!
This morning I received an email from a sports store giving me a code for a $10 reward that I had somehow earned. I went to their website and found 2 pair of socks and 2 headbands that totaled $10.97. I thought to myself, alrighty, pay a little tax and shipping and I'll be good to go. The shipping was $13.97!
So even if I got $10 off - I still have to pay $13.97 + tax. NO THANK YOU. I'll keep all of my money and you can have your $10 reward.
Thanks for the plug, FG! 🙂
I hope my blog didn't come off as judgmental! I get a little too "excited" at times, as Mr. Picky Pincher says. I tried so many methods to save money and I realized that deal sites weren't all that I was hoping they would be.
But there are two sample site that I do use pretty regularly: http://www.pickypinchers.com/sample-sites-that-i-actually-use/
And I 100% agree with your thoughts on this. 🙂 Deal sites/coupons definitely have their place, but I think other methods, like cutting expenses, are more effective for saving more money and living frugally.
And I thank you for what you do blog about. It is the chief reason I read you faithfully, when so many others have been "unsubscribed"
I actually had to stop my usually very frugal DH the other day from ordering something on line just because he had a coupon. I pointed out to him that since I am on that company's radar (or email list as the case may be), I see coupons ALL THE TIME. When he needed something from this site, let me know and I will watch for a coupon.
Hee, my personal belief is that only a small percentage of the people who threaten to Unsubscribe actually do it. To criticize a blogger who does it for love, not money is beyond the pale. Don't like something? Quietly stop reading or even actually unsubscribe, but don't shout it from the rooftops. In my experience, other people tend not to be sympathetic toward the shouter; they just want the shouting to stop.
Ahhh, I love how peaceful things are around here. It's very nice, actually.
We often forget that our time has value, too. I'm not engaging in any "deal" shopping activity that requires me to spend all kinds of time filling out forms, shopping online, and so on. I do use Amazon Prime Pantry - and even then I compare the price of their pantry items to what I'd pay at Walmart or my local grocery just to be sure I'm getting a deal. Doing that for ONE service can take me almost an hour per order. I'm sure not going off in search of more "deals" that eat up that much of my time to acquire.
the other thing to remember is that many of these "deal" sites want your information so that they can bombard you with marketing. I also don't have time for my inboxes and mailbox to be cluttered up with advertisements that push things on me that I don't even want!
Huh. I read Mrs. Picky Pincher's post and found myself not agreeing with her conclusions at all, even though I agree with her three facts.
Part of my disagreement was tone: the way she wrote this particular post was uncompromising, leaving no room for those who see it differently or who may value their time/money tradeoff differently..
Another part is her definition of frugal. "Frugality is about being happy with what you have," she says. That is one definition, and nothing wrong with it. However it's not the only definition. Another possible definition is not spending a lot of money. Brad, for example, did that quite successfully.
Separately, I'm cool with gaming the system. These companies are the ones who create the rules and dictate our participation. If they created arbitrage possibilities, that’s on them. (I’d feel differently if, say, a small charity left an arbitrage opportunity, or a group of school kids.)
I also had issues with the frugal definitition, more importantly the idea that frugality equals simplicity. I disagree with that times twenty or so. Some frugal folks are also into simplicity. I am not one of those. I am a stuff person who is also frugal.
Personally I do buy stuff. So give me the ten dollars of ten dollars or even 25 dollar deals at kohls, let me make a run and get free earrings, scarf and socks. Worth it to me? You bet.
Recently I received a $10 off $25 purchase coupon from a department store that I shop at fairly regularly. However, I didn't really need anything at the time, so I saved myself $15 by NOT using the $10 off coupon. I was pretty pleased with myself. 🙂
It is important to recognise that you are not getting anything free. For the cashback/ebate sites and often for coupons you are selling your personal information in exchange for a voucher. They can identify things about you even you didn't know! One retailer sent vouchers for nappies who didn't know she was pregnant. They knew because she had unconsciously changed her shopping habits.
Make sure you read the privacy notice first and understand what they are doing with your information.
I loved this post and the original article. Personally I can easily find myself "influenced" by these marketing gimmicks. Although I am trying to be frugal, I can sometimes get excited and buy more than I would have originally because it's such a "great deal!". I admire how diligent you and Mr. FG are in your frugality and that is the key but maybe also the exception. Marketers know how to get us to spend our money and for me, I'm just not diciplined enough (yet) and I don't want to fall into old traps so I just stay away from the game..
I really enjoyed this article. Very nicely written. As an Aldi and Fresh Thyme shopper you do not need coupons to shop. They both have the lowest prices. I shop Fresh Thyme for their amazing produce every Wed. It is much fresher than Aldi's. I myself do not have time for deal shopping etc. I have found at this point in my life my time is worth more than going from store to store picking up deals. If I have to spend a little more I am all about that so I can get done and get on with my day.
I think that if it's something you would normally buy then it makes sense to buy it when there is a great deal on it. We unfortunately don't have Aldi here where I live so I watch the sales and when I see something that I know we will use, and it won't expire soon, I will get it. I keep a very small stockpile of things like that. I do sign up for some free samples because I am not one to pay full price for the newest versions of shampoos, lotions, etc and this is the only way for me to try them out plus my kids love them. I like to get small sample bottles of products to take camping or put in my kids over night bags also. I do frequently fill out surveys for Kroger to get gas points or $5 off coupons but I am sitting in front of a computer all day so I might as well try to save money at the same time. For Christmas and birthdays my kids don't ask for anything specific and just want surprises so this makes it easy for me to get them things I think they will love as I see good "deals" on them. So for me, I guess some deals do cause a purchase because I watch all year long for the best deal on good gifts.
I don't purchase something because it is a good deal however I do use Ibotta, Swagbucks & Mperks for rewards.
When I didn't have a Costco membership (where I currently buy my dog food) I would purchase thru Swagbucks at Petsmart which was at 6-8% so that gave me a pretty good discount. At Petsmart you can order online and pick up in store it is really quite convenient plus. I certainly look for the deal on purchases I have to make anyway.
Now my youngest makes purchases if it is a good deal and even if he isn't going to use it. I am working on that with him! 🙂 He bought several shirts from the Oakley store because "they were a good deal" he has not wore them and he bought them several months ago...
I am eternally thankful to a friend who helped me realise that discounts, vouchers etc were a marketing tool to gain my dollar. I am becoming wary of surveys because as another reader has said it puts me on the radar. I did one on the weekend and have been having annoying calls every day since!
Good timing, because I just received today a 15% off coupon from an online retailer that I will buy from at times. I looked on the site to see what I could use it for, thinking of gifts for Christmas. I found one thing, but even with the coupon, unless I added some other things I didn't need, I'd have to pay for shipping, which would offset the gain created by the coupon. So I just let it go. Christmas is a few months away, and I'm sure I'll see more offers by then.
A deal isn't a deal if you don't need it. I'm reminded of my late father-in-law, dryly asking my "But it was on sale!" mother-in-law, as she walked in carrying full shopping bags from numerous clothing and décor stores, "Well, how much did you save me today?"
I wrote a response to that article too! I really think it depends on the person. IF you know you're the type who likes spending money, deal sites and apps may entice you to spend more and justify it. If you're like me, though (and you, from what I understand!), these can be a good tool since for you spending money is somewhat difficult and painful and you're likely to buy only what you truly need, deal or no deal.
As I was reading your excellent post, I was thinking about how often people focus on the bottom of the grocery receipt that congratulates the shopper for "saving" 35% off today's shopping trip. It is easy to get focused on the "savings" and not on the bottom line of what was spent - especially when the store is patting the shopper on the back!
I too enjoy rewards from my credit card, swagbucks, and ebates - but only for items that I was going to purchase anyway. If I'm not brand loyal for something, I do let the rebate % influence where I shop....but I do shop around and look for the "hidden" fees like the above posters comment about the high shipping charge.
Right...it doesn't matter how much you "saved", it matters how much you spent!
When I first started reading deal blogs for couponer's I was extremely naïve. I didn't realize that these same bloggers were pushing deals that made them money when they were clearly not a deal. My favorite were the sites that wanted you to join a program that gave you small giftcards. The catch was, you had to give them your log in information to your checking account so they had full access to your account. I was infuriated that bloggers would even suggest such dangerous options that was for the sole purpose of bringing them in money. When I originally couponed I was a maniac. When the construction economy crashed, we lived off that stockpile for 5 years. Now 8 years later we are in a different place. There are everyday items I must buy each month. My goal is to purchase each item for the best price possible. Aldi's and Goodwill get a great deal of my business. I shop by creative financing. My 10.00 Sams card I just received bought a 12 pack of gel pens for my son. ( Free shipping ). I used a 44.00 Staples rebate on a visa gift card for copy paper to buy my sons school shoes. Those were two items we needed but I only paid for one. I had a 10.00 off a 10.00 purchase at Staples that bought son two new school binders. I just used a 20.00 free credit to buy a journal for my daughters Christmas present. ( free shipping also ) I don't have much right now. By utilizing these freebies, I can accumulate everything we need. I try to utilize every trip into town so we don't waste gas. Todays doctor visit took me by Goodwill. I bought two heavy long sleeve button up shirts for my son. This is a new request for him. Half priced at 2.00 for Abercrombie worked for me. I am only buying what we really need. I am leaning towards being a minimalist. Meanwhile the blogger who claims she can feed her family of 10 for less than a pound of meat should be ashamed of hawking 90.00 a pound organic beef. I pay my bills on my credit card and pay it off each month. Those rewards will be used during the year for emergencies and holidays. In fact, I will be receiving a check soon for my crashed car. I will be buying my new car on my credit card and immediately paying it off. Those rewards will add up and I am still thinking how to utilize them to the best way. Just because it seems like a deal does not make it one. Shame on those bloggers who lie and mislead the readers who trust them.
I simply don't have the time for deals and such.
When I've gone to fill out surveys and the like, I always quit before I finish. They always ask for more information than I am willing to give. Luckily, I don't have to watch every penny and I can afford to ignore them.
However, I am thrilled that I can use my Southwest Visa at Aldi's now. I'm already dreaming about my next trip.
I only use coupons, deals, whatever if I'm going to get something out of it. I tried Ibotta, but there is never anything that I would ever buy to actually reach the 20.00 in a timely manner to benefit me. I prefer not to buy these items at the time and just save my money. Kohls always sends coupons.....I RARELY use them. Only if we NEED something will I go in there to use it. Same thing with Amazon and the free shipping. I will not invent something that I "need" just to spend the 4.17 that I need to get free shipping. I will just wait on these items. There is no point in spending money to save money unless the purchases were planned in the first place and they just happen to be the amount you need to save.
I don't know if they are all like that but TopCashBack really turned me off when I got slammed with so much junk emails and spam that it literally crashed my computer! NEVER again.