If you’re anything like me, budgeting for groceries can sometimes be challenging. It seems like each month, I’m buying more and more food. The pantry is stocked, the cupboards are full to the brim, and the refrigerator bursting at the seams. Then within days, the food disappears! It’s like my small family of four is preparing for hibernation or something. Winter must have that effect on us. Maybe you can relate?
Either way, no matter what the season, the cost of groceries can really add up. It seems like this is one of those areas of budgeting we can really overdo it, because well, we like food.
So, what’s a realistic amount to spend on groceries each month anyway? As a general rule of thumb, 10-15% of your total monthly income can be used for food. For example, if your household take home pay is $4,000, about $400 – $600 should be set aside each month for groceries. This can certainly vary depending on the size of your family, so if you’re new to this budgeting thing, use this range as a baseline. As each month passes, you’ll get a better feel for what your grocery needs are and how much to budget.
By the way, this list I’m about to break down is one that I actually live by, and it actually works. That is, if we stick to it. Like any good plan, it isn’t effective unless we do it.
- Create a line item in the budget. First things first. Before the month begins, the budget needs to balance. Figure out the allotment your family needs specifically for groceries. If you’re not sure where to start, use the percentages above or tally up past receipts to get an idea of the total cost.
- Only use cash. This may sound like a broken record, but using cash is the foolproof way to not overspend. Think about it. You take physical money to the store and only buy what you can afford with that money. Bust out the calculator on your phone if you have to, but I’m telling you, this really does work. Let’s say your monthly number is $600. Now decide how often you like to visit the store throughout the month, and divvy up the money accordingly. Weekly shoppers would take along $150 and twice a month shoppers would take $300. This concept falls in line with the envelope system. If you haven’t heard of it, read my post here.
- Make a list. Preparing a list in advance is one of the money-saving tips I love to use. Not only do I make a grocery list of individual items I need, but I make a weekly meal list based off of those items. It takes maybe ten minutes of my time, but saves me money at the store since I’m not buying extra things that would just end up getting thrown out.
- Skim ads and shop sales. Comparing store ads really opened my eyes to seeing which stores have the lowest prices on the same items. For example, I would never buy bananas at the big box store, because the price per pound is just too high. But by comparing prices between stores and shopping mostly sale items, I know I really am getting the best value (and saving money), which is exciting.
- Go generic. This truly is one of the easiest ways to save on the grocery bill. It’s amazing how the same product, from the same factory, is packaged underneath several different brands. If you’ve ever worked at a factory like me, you know this truth firsthand. Don’t waste your money on the expensive brand name. In most cases, the taste and quality is nearly identical. The only exception here is organic since the quality standards are higher.
- Don’t shop hungry. We’ve all heard that heading to the store on an empty stomach is a bad idea. We lead with our gut and not with our head. It’s extremely easy to deviate from the list and buy more items than intended because well, we’re hungry. The solution is simple, eat before you shop.
- Use cash-back apps. By far my favorite way to save on groceries is to use free apps like ibotta and Fetch Rewards, but there are so many others. Apps like Checkout51 and Shopkick also earn money back on groceries. Most of these apps require a quick snapshot of your receipt, which earns points and can be easily redeemed for cash or gift cards. I have legitimately earned both cash and gift cards through these types of apps, just by buying regular groceries I love.
- Clip coupons. For those that haven’t realized, coupons are free money. Not only are online sources like www.coupons.com great for a printable version, but e-coupons are also incredibly easy to use. For example, the Pick N’ Save app offers e-coupons that can be “clipped” online and applied once you swipe the Fresh Perks rewards card at checkout. They even mail coupons right to your door if you are a regular customer. Also, there are many stores that offer double coupon days, which doubles the face value of the coupon (usually up to $1.00). I have personally called around to see which stores do this, and it has paid off.
- Buy in bulk. Stocking up is a smart way to save money on food. Bulk items give you the most value for you money (usually). If you’re not sure, look at the price per ounce. When I worked for my family’s grocery business, I would always pay attention to the price per ounce when stocking shelves, since it revealed the most affordable option among the varying sizes of products. It’s something that has still saved me money to this day.
- Garden and can. Not everyone has the means and resources to implement this one, but it truly can be very cost-effective. By growing your own food, you not only reap the delicious benefits of fresh, home-grown produce, but can savor it all year long by canning the extras. Yes, there is more of an upfront cost with soil and seeds, but once that’s established, the harvest usually pays for itself in the long-term.
Overall, by preparing and planning ahead, these simple tips will help trim the grocery budget with minimal effort. It doesn’t take a lot of time to implement even a few of these, and I think you’ll be amazed at how much of an impact it’ll really have.
Happy shopping!