Saving money on groceries doesn't need to be difficult and it doesn't always mean cutting back. ·Credit.com
Abby Hayes
If you're like many Americans, a large chunk of your budget is spent on food — maybe 10% or more. Percentagewise, we spend less on food than we did in the '60s, but 10% is not an insignificant portion of your income.That's why so many money-saving articles focus on groceries as a great place to cut back on spending.
And the truth is that grocery spending is so variable. You could spend $200 per month to feed your family of four, or you could easily spend more than $1,000. With all that variability, it can be easy to blow your budget for groceries. If you find that you're consistently spending more than you've budgeted for groceries, following these tips can help with saving money:
1. Figure out If Your Budget Is Even Reasonable
One issue might be that you have an unreasonably small grocery budget. Maybe your budget is inspired by a few articles from Pinterest about feeding a family of seven for a mere $250 per month. Let's get real, though. Those families (often the moms!) spend hours meal planning, cooking from scratch, clipping coupons and driving to various grocery stores to snag the best deal.
Their results are amazing but that amount of effort isn't feasible for everyone. As a working mom in a two-income family, there's no way I can spend that much time saving money on food.
So if you've budgeted $150 per month to spend on groceries, maybe that's not enough. Here's how to find out:
a. Break Down Your Spending by Category
First, dig out your grocery store receipts from the past several weeks. If you don't usually keep receipts, make a point to save them from your next few shopping trips. Shop as you normally would for those trips.
Then, break down your grocery spending by category. For instance, you might divide it into meat, dairy, breads and grains, premade items, veggies and fruits, etc. If you purchase items like cleaning products, cosmetics or toilet paper during your grocery shopping trips, divide those into a separate category as well. Remove everything that's not actually grocery store spending from this category. Fast food and restaurant spending should be dealt with separately.
Once you've got your categories, add up what you spent in each category over the course of a month. This may not be a true average, but it's a starting place.
b. Set a Reasonable Budget
Finally, you can see what you actually spend on food groceries. Now it's time to see if that budget is reasonable. A good place to start is with the USDA Food Plans, which average the cost of cooking at home each month. In May 2017, the USDA thrifty plan for a family of four was $561 per month. The liberal plan for a family of four was $1,097 per month.
If your food spending is close to the thrifty end of things, maybe you're actually not spending too much on food. Maybe you're just setting your budget too low. But if you're coming out on the high end of food spending — or if you want to outdo the USDA — use the following steps to trim your spending.
2. Look for Savings in Your Highest Spending Categories
Since you've got your spending categorized, you can easily find out where you spent the most money. For instance, if you're consistently spending half your food budget on meat, it's time to start cutting back there — perhaps by eating meatless meals a few times a week. Or maybe you're spending a bunch of money on prepared meals that you could make much more cheaply at home.
Once you know where you spend the most, you can target that category for reducing spending. Some options include clipping coupons for items in that category, shopping manager's specials, or simply cutting back on eating those types of foods.
3. Look Into Different Local Grocery Stores
There's a reason Whole Foods is nicknamed "Whole Paycheck." It's a great place to find certain specialty items. But if you're doing all your grocery shopping at high-end stores like these, you will spend more.
Our family saves a fortune just by shopping at Aldi, a discount grocery store that's becoming more common across the nation. We used to do most of our shopping at a local chain but realized we saved a couple hundred bucks a month just by buying what we can at Aldi.
Chances are you've got some cheaper grocery options local to you. For instance, ethnic stores can be a fabulous place to pick up exotic spices and basics like rice and pasta on the cheap. Or you may find that a wholesale store membership saves your family a ton on food staples. Plus, you can use reward credit cards while shopping to earn even more deals. (Before applying, remember that most reward cards require a decent credit score — you can check two of yours for free with Credit.com.)
4. Create a Bank of Easy-Fix Meals
If your family is anything like mine, quick to prepare weeknight meals are a necessity. Without them, you fall back on going out to eat. Pinterest is a great place to find recipes for quick and easy meals that rely on whole, healthy ingredients.
Start trying out these types of meals. If you find a hit, keep the recipe close by. Try to find at least a few of these recipes that use ingredients you tend to keep around.
5. Do Some Freezer Cooking
When you find a great sale on expensive ingredients, pick up extra. Then, double up on your recipe, and put half in the freezer. This is a win-win. You get to save on groceries, and you have a meal ready to go for a busy evening!
For instance, if you find a great deal on ground beef, buy enough to make two lasagnas. Make them both at the same time, and pop one in the freezer. If you get into this habit, you could suddenly find yourself spending less on expensive ingredients, and you'll have a freezer full of delicious meals to choose from.
6. Cut Back on Waste
How much of your grocery budget goes down the drain the form of wasted food? If you're like most Americans, it's a lot!
Start keeping a tally of the foods you throw away after they go bad. Keeping track for a month or two could reveal some interesting information. Maybe you're over-ambitious when you buy fruits and veggies. You think your family will eat them, but you never get through them all. Or maybe you consistently throw away leftovers. It's time to freeze those leftovers, pack them for lunch or make smaller servings of your recipes.
Cutting back on waste is an amazing way to save on groceries. Make a point to wait to grocery shop until the fridge is nearly empty. You'll get more specific with your grocery shopping and more creative with your meal plans.
Even if you're already saving on groceries, there's usually room to save more. These tips will help you do just that.
