How to Save On Your Grocery Bill

The one thing that can really eat into the family budget is the grocery bill. Over the years, I have developed a few of my own strategies for saving money on my family’s grocery bill. I currently save from $1,100.00 to $1,600.00 a year on groceries for my family of four. I know this for a fact because I have been keeping an Excel Spreadsheet of all my grocery expenses for the past 5 years. Here are some of my simple strategies:

1. Find the grocery store that offers consistently lower prices. You might have to travel a bit but studies show that you can reduce your grocery costs by 10 – 20 percent without any coupons. Increase your savings by selecting stores brands whenever possible.
2. Keep a running list of items you need or are out of on your fridge. This helps ensure that you only pick up items on the list. It also helps to simplify the process.
3. Cut coupons. Don’t be shy – ask your family and friends for coupons they won’t use. You can also maximize your coupons by joining websites that offer free coupons. Just remember to only cut coupons for products that you normally purchase.
4. Buy meat in bulk. Cutting up your own meat may seem like a big hassle until you do the math. Some stores can charge up to 50% more for smaller pre-packaged meat. Lets face it, you're paying for the convince. Even if you’re single, cutting up your own meat translates into big savings.
5. Know what the store specials are. Check the papers for in-store specials and stock up. When my store has a sale on boneless skinless chicken breast for $1.79 per pound, you can bet I’ll buy 10lbs or more and cut it up myself.
6. Look for reduced items for quick sale. Many stores reduce their perishables for quick sales on certain days such as Mondays. If you can beat those “grey panthers” you just may snag yourself a good deal.
7. Find an outlet store. This bread store has proved to be one of the biggest savings to our budget yet. Our family likes bread – all kinds of bread so I was thrilled when I found an outlet store 12 miles from our home because I can save up to 75% off the cost of bread. And because the cost is so cheap, I can afford to buy all the best brands from brick oven to raisin bread to bagels and english muffins etc. This store alone saved me over $130.00 in 2006!
8. Don’t buy toiletries and cleaning products at the supermarket. Here is where you really save a lot of money. I have found that buying my toiletries, cleaning products and paper goods at a retail giant (and you know who I’m talking about), will actually save you a ton of money. Don’t forget to double dip and use all your coupons too.
9. Invest in a Slow Cooker. Slow Cookers love cheaper cuts of meats so you can save lots of money! I discovered this a few years ago and have been amazed by the results ever since. Not only does it save you time in the kitchen while providing your family a good home cooked meal but does so with the cheapest cuts of meats possible. Buy yourself a good cookbook and find a few recipes that your family will enjoy and you’ll be the hero.

Control your Expenses and Credit Card Use

One thing that helps me out even today is setting limits. This is something we just don’t do enough of. If I really want a big ticket item, then I put a little extra aside every month until I can afford it or make sure I get it with “interest free” monthly payments that I can afford. There is no shame in saying that something is just not in your budget at the moment. If fact, it may just empower you and relieve potential stress and guilt over buying something you just don’t have the money for. Try the following steps:

Create a monthly budget and stick to it. Never purchase more than you can afford to pay off that month! Obviously, we are not talking about emergencies here. Paying the full amount each month saves you a ton of money in the long run because you don’t pay interest and you get to use “their” money for a full 35-50 days! I haven’t paid a penny of interest on any charge card in the last 20 years!

Use one charge card about 90% of the time if you can even though you may have several. By simply using one charge card, you’ll be better able to keep track of the purchases you've made during the month. Once a week, gather all your receipts and write them down on a piece of paper and check your card total on-line. Constantly checking your total is a must and keeps you on track. If you get to close to your limit, consider making the purchase next month.

Apply for a no-fee reward charge card. These cards actually pay you a percentage of your monthly purchases and then make deposits into a saving account in your name while others deposit money into your child’s college 529 saving account which can grow tax free (depending on your state.) I think this is one of the best ways to maximize the benefit of using a charge card in the first place. The key here is to set limits, keep focused and make your charge card work for you.

Get a Grip on Your Finances

One of the first things I did was to simply make a list on ledger paper of all my monthly expenses. For some reason the simple act of physically writing down all of my expenses and debts forced me to focus on them in a way you I might not have in the past. Don’t forget to list all the things you might pay cash for such as fast food stops, haircuts, movies, and pizza night that you might not otherwise have accounted for.

Next I divided up my expenses based on my income; for example; I got paid twice a month so I split my bills by the first and second half of the month. I asked myself, what do I need to pay with this paycheck and what can I afford to pay? Once I did this, I was able to get a better picture of what I was responsible for.

In the old days, I used to have several envelopes for such things as rent, food, phone, train fare etc. because I knew that if I put the money in the envelope, that’s what it was for. If you’re someone who struggles with discipline something like this just might help you.

Now take a hard look at your financial situation. If you are in need of debt consolidation then don’t delay (the longer you take to pay it off; the greater your financial responsibility). Look for no-profit organizations for help as your first step.

If you have a charge card or two that is in trouble, take the time to figure out what you owe and figure out ways to send extra payments to pay down the debt. It could be as simple as deciding that you will bring your lunch to work instead to buying it for the next few months or buying one less outfit.

If you typically spend between $5.00 and $7.00 a day for lunch then bringing your lunch will save you about $100.00 a month!! You could use this cash to pay down your charge cards! The key here is to trade off. The more you think about ways to save, the more ideas you will come up with. This process has many benefits because it will in power you to take charge of your financial freedom. The bottom line is that you will begin to feel good about the choices you have made even if that means a little sacrifice in the beginning. Remember – it’s all about your financial freedom.

Money Conscious from the Start

I’ve always been tight with money. Growing up poor in the Bronx taught me a few things about money or the lack there of.

In 1962, my father died unexpectedly leaving my mom to raise 5 kids on her own. Needless to say, my Dad’s income as a Postal Clerk for Post Office left a big hole in our family income. Yes, my Mom had Social Security benefits but she was so proud, that she would not apply for social service (welfare) benefits. Needless to say; we had no health insurance benefits to speak of. So when we got sick or needed to go to the dentist etc., my Mom had to make some real choices about how the money was spent. I witnessed firsthand the choices a parent makes when income is limited. I watched closely as my Mom struggled to pay for the basic necessities and keep her head above water.

From the time I was a little girl, I knew that there were those with money and those without. I made up my mind early on that I was going to be one of those people who had money and could manage it wisely.

Over the years, I have tried to learn every possible way I could to be “smart” about money. I learned how to bank it, save it and invest it wisely. I watched every program about money and read every article I found in magazines and followed as much of the advice that I could, given my income and financial situation at the time.

Today, at 45, I’m proud to say that my husband and I own our home without a mortgage, we own two cars with no payments, and we have no debt what so ever! We have our retirement accounts set and working for us and we have well established college accounts for our kids. We did this with hard work and discipline and not much else.

As I hear in the news about the millions of people who are drowning in debt and are struggling with finances, it makes me sad to know the stress this causes on families. I also think that “life financial skills” of some sort should be taught to kids at an early age.

With this in mind, I wanted to share what I’ve learned and what has worked for me during my very modest beginnings.

Don’t misunderstand this blog, I’m not going to pretend that you haven’t heard all this information before, I’m just saying that I have actually tried many of the tips, tricks and techniques that have been recommended by financial experts and want you to know that it can work.