Are you Spending too much on Groceries?

So you need to eat – we can all agree on that – but what should you really be spending each month on groceries? My girlfriend and I went to the grocery store last night and by the time we were done the total was $180 for one week of groceries! For two people this seems quite expensive, especially for Trader Joe’s. The good news is that I’ve cut my spending in so many places over the years that I can accommodate this kind of expense. My weekly budget for groceries is $70 and since we split the bill this was $20 over budget. When I mark this on my budget I put $70 in the groceries category and $20 in the Additional Expenses category to remind me that I went over budget on this item.

Many people would spend the extra $20 shrug their shoulders and say, oh well – it’s only $20. Not me, I’m a money-saver so I need to analyze anything that has exceeded my budget to figure-out what we can do to stay within budget in the future. As a money-saver you should always be doing this – analyze your expenses and see where you money is going.

We reviewed the receipt from our grocery trip when we got home and determined what the extra overages had been. We are now buying our lunches at the grocery store rather than from a restaurant/store during the day. I normally spend $45/week on lunch – buying at the grocery store decreased this to $25/week. When I bring my weekly lunch budget from $45 to $0 I now find myself with $5 extra every month or $5 saved in my monthly budget! So while I spent more on groceries I save money on lunches – and where does that $5 go? Into my emergency fund which I contribute $100 to each month (now $105) – every dollar counts and by keeping close track of your money you’ll be able to maximize your savings!

Now ask yourself – when was the last time you analyzed your grocery bill? Next time you go shopping spend five minutes reviewing the bill – you might just find some incredible ways to save money each month!