The guest post I have lined up for you today is going to hit most of us in our gut. It's all about how much we're spending on food in our budget. I know in my budget, our family has always had a hard time with this, but we're slowly getting it more and more under control! Today, Kyle from Dollar Diligence is back to share some tips on how to save money on your groceries. Last time he was here, he told us his story of how he paid off $33,000 of student loans on a teacher's salary. Take it away Kyle!
“What’s for dinner?” This could possibly be the most used phrase in every American household today. Seems like a simple enough question, but it opens up a whole can of worms!
How much do you spend on food per month? I’m not talking about groceries only. I’m talking about food.
Take a minute and add up all of your food purchases in the last month or so. Fast food, restaurants, gas station snacks/coffee AND groceries. Got it? Now-what percentage of your income is this?
According to LifeHacker American’s spend between 9-12% of our income on food. For example, my take home income is around $3400/month. This means that if I were average, I would be spending around $340/month on food.
Does that number sound high? It does to me. I’ve used about the same budget for the past year of so.
I personally allocate $150/month on groceries, and $50/month for dining out (I live with my fiancee-she does the same). Yes, that’s it. I spend 5.8% of my income on food-and I’d still like to get it lower, but I have to concede a few things since I live with someone (I’m more than happy to do this! Hi babe;)).
To me personally, I can not think of a bigger money waster than food in our country. I enjoy a nice meal as much as anybody. Restaurants are awesome, food tastes good, I totally get it.
However, I don’t live to eat, I eat to live. I haven’t always been this way. I used to spend upwards of $400-$500/monthly on food. How do people do this? I’d be willing to bet that the average American household has no clue what they spend on food in a month.
Old Habits Die Hard
Prior to my epiphany with money (read about it here), this is what an average grocery trip looked like: Grab cart-go through every aisle-pick out food that looks tasty, swipe debit card.
I had absolutely no plan other than what really looked good at the time. I went through times in my life where I could care less about health and ate anything, to times when I really focused on health-grocery trips were different then.
I’m sure we all know that eating healthy can be expensive, but it doesn’t have to be if you plan. Looking back, I would estimate that I spent around $300-$350/monthly on groceries.
Restaurants and fast food
There likely wasn’t a week in my adulthood that I went without fast food or restaurant meals until about 3 years ago. In college, it was the McDonald’s dollar menu (I still love it!). As I got older, it was restaurants, where $20-$30 one person meals were common. Every pizza is a personal pizza if you try hard enough!
I estimate that I spent anywhere from $100-150/monthly on restaurants.
It was easy to rack up $500 food bills in a month. That’s insane. I spent $500 a freaking month on food that tasted good-but other than that, it really did nothing for me other than lower my bank account and make me feel like crap.
How was this happening? Very simply-I did not have a plan. I was not budgeting. I was not being intentional and diligent with my dollars.
Things have changed more in this area than any other with my money habits, and I’m very grateful that they did!
Monthly Food Today:
Today, and for the past couple years, my eating structure has been completely different. It took a lot of getting used to, but my fiancee and I now have a very simple, and effective system in place to keep our food spending low.
Between the two of us-we spend on average $350 or less every month on food. This is groceries, restaurants, gas stations, etc.
This is not an extremely low budget for food in my opinion. We eat well, we have some really cheap meals-we have some pricey meals-but we could get lower if we had to!
That’s less than I spent when I lived on my own. So, what happened and how do we do this?
5 Tips to stop eating your paycheck:
This is likely a tip that isn’t shocking to anyone, but do you do it? If you do, do you plan your grocery trip after you meal plan? I would suggest planning your meals after the local advertisements come out, then plan your meals, then go grocery shopping.
We do this weekly, but I know people that shop in two week cycles. It really makes no difference.
If you are planning you’re more likely to actually eat at home instead of going out. If you don’t know “what’s for dinner,” it’s a lot easier to order a pizza.
Meal planning also cuts down on waste. According to this article by CNBC, in the United States, we throw away 31% of our food supply.
Just take that money and throw it away, light it on fire, flush it down the toilet, you get it. If you plan-you’re likely to come in well below that 31%.
Buy meat in bulk:
I recently looked at our local ads and saw ground beef on sale for $1.88/lb. This is an extreme sale these days with beef prices at near record highs in recent years. Next to the sale was a *this sale applies to 10 pound rolls only-smaller quantities will be $2.59/lb.
So, of course-we’re buying the 10 pound roll, taking it home, splitting it into smaller quantities and saving a few bucks. Seems simple, but nearly everyone at the grocery store buys the smaller packages.
The other option here is to buy a quarter/half a beef from a butcher. Easy if you live in Nebraska like I do, not so easy everywhere else-especially if you’re limited on freezer space.
Keep Breakfast and Lunch Simple
Truth be told. I have eaten the same breakfasts and lunches on and off for Three. Straight. Years. 3 years. Yeah.
When I was really scrounging, I made my own oatmeal packets. You know the ones that come all fancy in a box of 10 for about $4 a box? I made my own out of bulk oatmeal, brown sugar, raisins, and other cheap add ins.
When it came down to it, I figured I spent about $0.20/daily on breakfast. Now that I’m debt free, I splurge and buy bagels for $1.50/package that last me a week. So, with peanut butter and bananas to go with it, I’m spending about $0.50/daily on my breakfasts.
Lunch-Peanut Butter and Jelly-Yogurt-Apple. Every. Damn. Day.
Don’t give me the, “I can’t do that.” If you want to get out of debt or save money. You CAN do anything. What WILL you do?
I also don’t want to hear how “unhealthy” this diet is. I’ve run several half marathons, completed fitness programs like P90X, and I’ve never felt or looked better than I do today. The human body is an amazing thing. I figure my lunches cost me about $1/day.
I’m not suggesting you do this, in fact, I wouldn’t recommend it. People will make fun of you. My students laugh at me. I don’t care. I’m cheap, frugal, and debt free!
What I am suggesting is that you keep it simple. Calculate the cost per meal, and you can really save some dough!
Have a Routine & Repeat Meals
If you meal plan, you will get into the habit of cooking the same meals over and over. This can get monotonous, and maybe even boring. Guess what? Routine=success. As long as that routine involves a cheap meal. You’re on your way to saving money. We eat a lot of deer at my house (I’m a hunter.) We eat deer tacos, sloppy joes, burgers, brats, etc. These meals are routinely on our plan. They’re cheap, healthy, and tasty!
Stock up at the end of each month
This has been a final recipe to our success. When you get to the end of the month and you have money remaining, which should be your goal, use that extra money to stock up on things you need or use on a regular basis. We stock up on sale items, toiletries, dishwasher soap, etc. This is a way to hide these costs at the end of the month so you don’t blow your whole budget on them throughout the month. It also sets you up for success in the month ahead.
That’s it. Do those five simple things and I would bet that you will see a difference in your budget! Stop eating your paycheck! Be intentional with your money-be diligent with your dollars.
Now excuse me, I have to go buy some peanut butter 🙂
careful and persistent work or effort.
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Just fill out the form below and I'll send you the link to get the same exact budgeting spreadsheets that I use each month!
Included in the workbook:
- Monthly budget form
- Breakdown of savings form (for your sinking funds)
- Overview of your financial plan
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Latest posts by Kyle Steinkuhler (see all)
- 5 Tips to Stop Eating Your Paycheck; How to Save Money On Food - February 6, 2017
- I Paid Off $33,000 Of Student Loans In 18 Months On A Teacher’s Salary - January 2, 2017