Reduce Your Grocery Budget

Back in my university days, I held down several part time jobs. At one point I worked in the deli at Coles, and Bunnings Warehouse at the same time. Moving from one to the other was like transitioning from one galaxy to another.

The customers at Bunnings were polite and happy, excited about their upcoming DIY projects. The customers at Coles were unhappy and frequently impolite, annoyed at having to spend their hard earned cash on groceries. Now I’m a mum I understand why.

In my house, the annual cost of groceries is second in line to our mortgage repayments. According to the 2011 ABS census, in 2009-10, the cost of food and drink for the average Australian family with young children made up 15.1% of the total household expenses.

So, the question is, what can you do to get some control over the cost of your groceries? You need to budget! The first thing you need to do is go through your bank statements and calculate what you are currently spending at the supermarket. Warning – you may be horrified at the results. I frequently come across people who have no idea what they spend at the supermarket because they make multiple trips and lose track.

Once you have calculated what you are currently spending, try implementing the following changes:

Plan your menu:
Check the fridge and freezer for anything you have that needs to be used and incorporate them into your meal plan early in the week.
Check the weather and plan your meals to it.
Create a storage facility for your recipes. I have a folder in my kitchen I look in when I’m stuck for ideas.
Research regularly for new recipe ideas. If you google “budget recipes”, there are lots of ideas online.

Write a list:
Write a detailed list from your menu plan, checking for any ingredients you may already have.
Spend 10 minutes taking an inventory of any other household items you may need like washing powder, soap etc.

Other tips for saving at the till:

Cook in bulk. In my house I cook Monday and Tuesday, and we eat the leftovers Wednesday and Thursday. This not only saves money, but also time!
Be flexible when you are in the shops and be open to substituting different ingredients. For example if you planned to make steamed broccoli but the cauliflower is on sale, use the cauliflower!
If you can, shop around for specials. Personally with 3 kids at home I just don’t have time to do this.
Consider trying cheaper varieties. Being a brand snob will cost you more!
Be open to trying discount supermarkets. I recently wrote an article comparing the cost of Coles home brand products to Aldi products and found the average family of four can save around $1,200 a year by shopping in Aldi.
Shop for the week and do not go back! The more trips to the supermarket you take, the more money you will spend. This can only be achieved with detailed planning so make sure that shopping list is spot on.
When at the supermarket, stick to the list. Resist the urge to make impulse purchases.
Do not take cash out at the register. Use an ATM for cash withdrawals so at the end of the month you can clearly see what you have spent.
I love the online Aldi shopping list tool . It enables you to plan your shop and price it up. (Excluding fruit and vegetables.) It’s terrific because it minimises register shock.

Try this for a month, then go through your bank statements and tally up what you have spent and compare it to what you were spending previously. I found by making these changes I was able to save $250 a month! That’s $3,000 a year!

This exercise isn’t about being as frugal as possible, it’s about finding a level where you are comfortable and your family is happy. By the end of the month, you will see how much you can save by planning your shop, and you will have an idea about what you are willing to compromise on. Then you can set your grocery budget.

Tips on setting your budget:

Your budget needs to tie in with how often you shop. For example, I have a weekly budget and I shop once a week.
Your budget needs to be realistic and achievable. If it’s going to make you miserable you won’t stick to it.

How to monitor your budget:

You need to track your budget. This means going through your bank statements monthly and seeing how you have performed against your budget.
Remember a budget is like a diet. If you overspend, put it behind you and start against the next day fresh. Get back on that horse!

Having a budget isn’t about being tight or boring. It’s about being the boss of your money and making your money work for you! With the additional money I have managed to save by grocery budgeting, I have been able to make extra repayments on my mortgage! What will you do with your extra cash?

Happy budgeting!
Leanne
My name is Leanne and I’m the founder of Budget My Coin. I am a fully qualified CPA and live in Melbourne with my three daughters and husband.Currently I’m a stay at home mum, but in my previous work life I’ve held numerous finance positions in multinational companies both in the UK and Australia. I’ve also had experience working in professional services on small business and personal taxation affairs.