Friday, April 23, 2010

Investing Money thru Stockpiling

Having a stockpile can be a good way to invest your money according to an investment advisor, and as I shared earlier in the week, CVS can be a great place to shop to build a stockpile.  I can't provide you with a name or an article to read, but I will share what I read years ago.

There was a one page article on money management in The Parade Magazine written by a financial guru with ten ways to get the highest return on your money.  The article began with a list of common investing strategies such as when to invest in stocks or bonds, IRA info, paying down your mortgage to save interest, and others that were mainly focused on those with money to invest.  But he ended it in the grocery store.

He advised buying non-perishable items on sale as an "investment strategy."  He gave the example of a can of tuna.  He suggested that
when you see tuna on sale 25% off the regular price buy three to six months worth.  In simple math he said you just made 25% on the dollar and there is no other place you can invest a dollar for 3 months and earn 25%.

So say you purchased one can per week for three months at full price of say $1 each.  You would have paid $12 of your grocery budget.  If you purchased them all in one week on sale at $.75 each you would have paid $9 of your grocery budget, saving 25%.  This is essentially what is happening at CVS--but usually in higher percentages.

A new CVS shopper just beginning to use coupons and extra bucks usually saves at least 25% and probably more like 50% over retail.  As they continue to shop at CVS this percentage increases.  Currently I have averaged saving 100%, paying tax only (with gift cards I earn online), for a long time.  There are times I actually "make money" by increasing my spending power at CVS (here are a few examples).

To be successful at stockpiling you need to not be concerned at first with your stock being unbalanced.  You may have a month where all the deals are for toothpaste, shampoo and tissues.  The next month the deals are on pain killer, body wash and cleaning supplies.  You may find you have 6 months of toothpaste, 3 of shampoo and 2 weeks of something else. Over time you will have stock of almost all items you need which ensures you will never pay full price again.

Another point is that at first a new CVSer will be excited to buy toothpaste at $.99.  After a few weeks, when they have a couple of tubes on hand, they will then only buy it at $.50 and so forth until eventually they will only buy it if it is a money maker because they have so much stock.
Anyways, I found it interesting that an investment consultant would advise people to invest in stockpiles. Now if I could only learn to day trade stock.

Happy CVSing!

Disclosure: Links in this post may be Simply CVS affiliate partners or personal referrals.


JRFrugalMom and Family said...

I agree, it is a fantastic way to save in the long run. I have a huge stock of shampoo, lotion, conditioners, shavers, toothpaste and more. I never pay full price, and even 50 percent off is expensive to me.

It's the same thing with diapers. The regular prize for a jumbo pack is $10.99. I don't pay anything more than $5 between coupons and mail-in rebates.

a busy mom getting through life said...

are you going to post ways to put some deals together?
For ex. I have a $5/$40 and am curious to how to get a low OOP from it.

You have me bet,put I just started again trying cvs- I get so upset at times bc the stores are out of things.
I am still paying for the list of items you mentioned above but I hope that changes soon.
I think the more money I save the more $ I can put to paying off or on a debt.

Cheryl @ Simply Shoeboxes said...

Exactly, it would be sooo cool to transfer the money you save to pay off a debt. I don't have time now, but I will try to look it over later today and see what would be best. Do you have any free coupons or any of the Schick disposable razor qs for $2 or $3/any? I save up all these things that will net me no out of pocket to get up to the $5/40. If you are just starting again a $5/40 may be very hard to do. Take it easy at first and you will ultimately save more money.

I suggest you look over the extra buck coupon match-up list found in current deals and see what coupons you have or can print and which items look good for you.

Another hint for the future: email or call companies for the items you want to be stockpiling and ask for coupons or just give a compliment, this is a great way to build a supply of qs, often frees, that you can then use with these $/$$.

Oh, and as to stock, get those rain checks!! NO problem really, great to have a supply of rain checks for the $/$$s, too. I also ask for things to be ordered.

a busy mom getting through life said...

I finally got brave and tried the post on here and about the cvs photo magnet - $6.99.I posted that I did that and it was free!
My first time trying that one and it showed when I signed in that I could get 30 pic photo for free so I may use them next week since my son is going to the prom.
I did use the pick up at the store.

Anonymous said...

The other thing I like to do with my stockpile is donate to those who need them (and who may not have the OOP to start building their own stockpile). Our local food bank takes donations of toothpaste, body wash, shampoo, etc. - all things that I get free from CVS and have an excess supply of. That's why I often take advantage of deals even when I have too much stockpiled. Check with your local food bank or homeless shelter or battered women's shelter to see if they take donations - I'll bet they do!

Cheryl @ Simply Shoeboxes said...

Yes, I do the same. I mention it in this post about stockpiling:

It is so fun to have the stock when someone is collecting something for a special project, too. When my in-laws visited recently I was able to give them a lot to take home with them to use in the projects they do for the needy.

Thanks for the reminder, I didn't include that in this post.