How To Save Money on Groceries Pt. 1
Congratulations on embarking upon this journey! If you trust the process and stick with it, you'll see changes quicker than you thought possible.
So, how do we get started? It's a two-part process.
Step 1: Figure out what you're spending now.
Step 2: Figure out where you're over-spending and cut it.
If that sounds simple, it's because it is.
Figure Out What You're Spending
Use an app to track every single time you swipe your credit or debit card for an entire month. Only use cards for now. We'll be switching to cash eventually, and I'll explain why later.
This is usually a sobering process because we find places that we unknowingly overspent (pretty consistently too). It's OK. That's why we're here. We care now and we're just gathering information.
I recommend using the EveryDollar app. Dave Ramsey's company created it and it's the best app I've found (after my favorite free one disappeared). It's a good value considering that it costs us only $6.67/month and it saves the average user around $395/month. So, for the price of a quick breakfast run to Chick-fil-A or Starbucks, this app helps us identify almost $400 of fat in our monthly budget. That pays for almost 5 years of our subscription, so I call it a wise investment. I need things to be visually laid out for me, so their charts and graphs really 'make it real' for my brain as I try to process all of this new information.
Once you track your spending for a solid month, you'll have a starting point.
Cut Where You've Overspent
That sounds daunting. Where do I even start?
Learn your prices!
I was shocked at how many high prices were actually advertised in the stores' weekly ads. I was even more shocked at how many of them I didn't even realize were high until I began paying attention to them.
So, start tracking those prices. What are your most frequently bought items? We tend to have a list of a handful of breakfasts and lunches on repeat. We're also semi-predictable about our dinners. As you create your grocery lists, make a note of the prices.
I use an old Microsoft Excel spreadsheet, but you can use anything you're comfortable with. A notebook and pen, your Notes app, whatever. Just understand that it's essential to have it written down somewhere. It'll take several weeks of doing this before we can track an adequate pattern. It'll take even more weeks after that to memorize the Buy Price for each of our frequently purchased items. Just be patient and trust the process.
What's a Buy Price?That's the item's lowest price. When it hits this price, you'll know to buy 2.
Huh? Aren't we supposed to be saving money? Why the heck would I buy double?
To avoid paying full price.
Our goal = To only buy grocery items when they're at their Buy Price...buy 2 of them...save the backup item for the next time you need it so you don't have to pay full price then.
'Future' you will thank 'present' you when they reach for an item that you paid $1 for instead of today's price of $3. And you will have bought TWO of them AND still saved a dollar! THIS is winning.
Expert Level: Track the sale prices so you'll only buy these things at their Buy Price.
Granted, produce, meat and dairy rarely fluctuate, so it's extra important to focus on the items that do. These are mostly the packaged foods and ingredients, but the savings add up to be mind-blowing. It's still a good idea to track the prices of those healthy staples because they vary wildly by store. Once you start paying attention, you might discover that you need to change where you shop for meat, dairy, and produce.
I love using the flipp app. It compiles my local grocery weekly ads in one spot. I can quickly compare stores and know whether or not I should stop in while I'm in another part of town. I don't waste gas by driving across town, but if I'm in the area, I've been known to tack on a grocery stop to take advantage of a good sale.
In conclusion, this puts you in more control of your spending. You still eat what you want to, but you only pay bare bones pricing and you can often afford to stick an extra on your shelf for later. This is just one layer of our process, but it's the perfect place to start! You've got this!
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