Food Cost- Analysis of the past 6 months

In order to be successful at saving money and creating wealth you have to plan, analyze and revise. Things change, nothing remains constant and therefore it is important to always be aware of your current decisions and any future decisions.

I started my budget in January 2009 and I have really noticed a difference both in my spending habits and my ability to save money. One area that everyone can relate to is: Food. Everyone needs food, 99% of people buy food. In January when I created my budget, I allocated $60 per week for food, for 3 people. I am happy to say that there have been maybe 3 or 4 times that I have gone over budget. You may think that $60 per week for 3 people is a lot of money just for food. Add that up, and it is $3120 per year. Generally, I try to buy healthy foods, non-packaged foods, sometimes organic, and a lot of fresh fruit and veggies—sadly these are all the more expensive items it seems. One thing that has really cut my food expense is the fact that 2 out of the 3 people do not eat meat (I do not eat meat).

So, I created my budget, planned for my expenses and now I am ready to analyze a good 6 month period ( Jan to June) to notice any trends or revise my budget. I have created a graph to show what I spent on food each month. Like I said before, I do spend a weekly amount, therefore I added the weeks in the month to get the monthly total. I had a rough month of March, but ever since then I am on the decline.

I am proud of myself for the fact that before the budget, I would buy a lot of pre-packaged foods and could easily spend $40 a few times per week. Now, that I am on track with my budget, I am able to increase my savings and have stronger goals.

Tip: really look at your food expenses. If they are not watched closely, it is so easy to spend too much money. Grocery chains know that we have to buy food, so they can almost get away with very expensive items. For more helpful information, refer to my previous entry about Grocery Shopping Tips.

 

Grocery Shopping

How many people really enjoy grocery shopping? For my fiance and I, it’s like a special outing to go grocery shopping! It really can be enjoyable. During this difficult time period, many companies have raised their prices to fend off their decreasing profits. This places a greater problem on many consumers since it is becoming more and more complicated to live off their current income, let alone putting money away for savings.

Below are helpful tips that I recommend to consumers while grocery shopping.

Create a Budget
First and foremost; you should create a structured budget for grocery expenditures that ensures enough quantity of food is purchased to last for the budget period. For example; if you shop on a weekly basis, ensure your budget is substantial enough to last for the entire week or if you shop bi-weekly, ensure you purchase enough groceries to last that time frame. Without a budget, there is no guidance or structure and as consumers it is too easy to over spend when we are faced with not knowing what is a need compared to a want.

I generally have an idea of how much money I spend per week in each food category. This guideline is only kept in my head however having the general outline allows me to stay within our weekly grocery limit of $60.00.

Item	Amount
Dairy (milk, yogurt, cheese)	$11.00
Meat Products	$6.00
Grains (bread, buns)	$6.00
Fruits	$16.00
Vegetables	$16.00
Everything else	$5.00

Read your local Flyers
A fast, simple and logical method to see what local vendor is offering their products at a more reasonable price.

Collect Coupons
Coupons are a great way to save an extra 1$ per item here and there. It might seem like a waste of time or that is really won’t make a difference, but common sense really shows that it does pay off. Take for example a coupon that is valid for 1 dollar off a loaf of bread. Over one year, if purchased weekly with the coupon, this amounts to a savings of 52 dollars. Coupons can be found on many online websites, as well being delivered through the mail. Keep your eye open for these savings.

Make a List
This is probably the most cost saving tactic one can use. Many consumers feel that they know exactly what they need and want when they are grocery shopping, however this is not the case. Marketing departments have become so intelligent and so advanced that they know exactly how to catch your attention, and make you buy! Think of all the items that are located right by the cashier, that is meant to be last minute items that you think will come in use. Personally, I can not go grocery shopping (or any kind of shopping) without a list made. It provides that sense of structure that allows me to purchase exactly what I will need for the entire week.

Brand name Products?
Brand name products are clearly more expensive than private label items. Why? Well there are many causes of this, firstly advertisers assume that people will fall into their trap believing that their product really is that much better than their generic competitor. Also, brand name products have to build an extensive marketing and advertising campaign that will attract and retain their loyal customers. In all seriousness, there are some no name products that don’t measure up with their brand name competitors, but overall I don’t feel there is a need to spend more money on a specific brand. In times like this, I feel it is more important to buy the right food at the right price.

Price Match
Did you know that some companies offer what is known as price matching? This simply means that they will match the price of a product if they sell it for a greater amount than their competitors. Usually all you have to do is bring in the flyer to illustrate the lower price and that price will be granted. This can be go a long way when purchasing staple items, and it allows you to complete all your shopping at one main store.