When living cost become higher and getting higher, we need to do something to manage our personal cost. Not just personal cost, also our daily bill, like grocery bill, electric bill, etc.
“In this world, nothing can be said to be certain, except death and taxes” - Benjamin Franklin.
He was wrong, we all need to eat and the grocery bill is one of the common denominators in the spending habits of all of us. The point is that we all spend a sizeable portion of our incomes on groceries and this is often the most difficult part of our budget to control. And that is the first key to lowering your grocery bill.
1 - Establish a budget
Yes; budget is one of the few six letter dirty words. No-one likes doing them but they are a necessary evil and an important first step on the road to financial salvation. It is very difficult to get where you want to go if you don’t have a map or at least know the directions and the budget is the financial equivalent. The amount will depend on how many people you shop for and how often you are paid, but it is important to set a figure.
2 - The devil is in the detail
After you have arrived at a grocery budget, you need to get into the nitty gritty of details. This means planning your meals and in my mind this is a more difficult job than budgeting. Bear in mind your after work commitments. Fresh food is better than pre-packaged meals and is usually a fair bit cheaper.
Work out a menu that covers all your meals for the pay period and break this down into ingredients. This will result in a shopping list and the hard work is almost done. At its simplest level, you only need to stick to the list.
3 - Shop around
What you are trying to achieve here is to get the lowest price for your basket of goods. Remember that time is money and take into account travelling and parking costs when comparing suppliers. Many retailers now have on-line stores so that you can readily compare prices. If an outlet has a significant special on an item, you can go back and re-jig your meal list to take this into account.
4 - Generics - What’s in a brand?
Generics can offer significant savings. There used to be a noticeable difference in quality so you effectively got what you paid for. Nowadays, the difference is largely in the packaging. If you can manage it within your budget, by all means, cave into those misplaced loyalties. If you can open your mind though, give the generics a go and defer judgement until you do.
5 - It’s all in the timing
Some times of the week are cheaper than others. Different retailers have different purchasing cycles and offer discounts on goods about to go past their expiry dates (also called use by or best before dates).
In terms of other types of timing, there are some days when it is better to shop than others. In Australia, all pensioners are paid on the same day, as are any industry groups. The same way the petrol cycle works, there are days when groceries are cheaper than other days.
6 - Stick to the list
This sounds easy in theory, but it is often the hardest thing to do. Supermarkets are a hotbed of subtle, and not so subtle, marketing to entice you to impulse buy. It’s also a good idea to shop alone and that means without your partner or the kids. Set yourself a bit of a challenge - to get everything on your list, and only the items on your list, in the quickest possible time.
7 - Anyone for coffee?
If you work in an office, perhaps you are part of the morning and afternoon exodus to the nearest cafe. If so, grab the calculator and work out how much per pay that little caffeine hit is costing. Is it really that necessary?
The same goes for eating out. The occasional treat within your budget is okay, but you should try and cook meals using fresh ingredients. It’s healthier and it will save you money.
If you follow the simple guidelines above, you will have a great chance of lowering your grocery prices. Put any money that you don’t spend in a jar and hide it away somewhere at home.
That’s my experience how i manage our grocery bill, just do it when you could do, and you will feel the effect.