Wednesday, May 16, 2012

Saving On One of Life's Biggest Expenses...FOOD!

I'm very excited to share with you this amazing post from our friend over at Canadian Budget Binder!

We all have to eat, but we also need to make sure we have a roof over our heads.  When deciding how much money you have to go grocery shopping most people pay "fixed" expenses first. Once they are paid, you should have somewhat of an idea how much you can spend on groceries. 

Is a budget important? Absolutely, without it we wouldn't continue to have the ability to save as much as we do.

Why is a budget important, you ask? Well, even before we started to budget, we thought we were budgeting in our heads. We thought because we were using coupons, shopping sales, and not spending on "crap", that we were budgeting. Boy were we mistaken! It wasn't until we designed our own budget that we found we were in fact overspending on groceries every month. Not by a little either, try a couple hundred dollars each month!  

When we started documenting our shopping we were able to see our habits over 3-4 months. We were better able to understand that although we were price matching, using coupons, and scouring the cheap racks, we were in fact still spending far too much. We have since realized that the $500-$600  a month we were spending was unnecessary.

We were stockpiling, but at what expense? You have to ask yourself if you are stockpiling, "is it worth it if you are using credit card?". If so, how much are you really saving after paying credit card interest if it's not paid off in full at the end of the month?  Although we never held a balance on our credit card, we had to take a step back and talk about "when enough is enough". Some people don't know when to stop spending, even with a coupon in hand. 

We decided that it had to be free or near free, and only if it will get used within the month, for it to make it into our stockpile. So although coupons are amazing to use, you have to keep the end goal in mind and that's your budget. Don't get side tracked in the SUPER Centre type stores either, stick to the list stay away from sections you shouldn't be in!

We started The Grocery Game Challenge weekly along with weekly matchups from Save Big Live Better to challenge our fans to:
  • Post Their grocery budget ie: $100 per week
  • Post What they bought?
  • Post Where they purchased the items?
  • Post How much they saved using coupons/deals?
  • Post What was your total out-of-pocket?
  • Post Were you over or under budget?
  • Post Why were you over budget?
  • Post How will you improve for next shop?
Once we started the game we also decided on a "no-shop week" once per month. This has helped cut down our expenses tremendously as we simply ignore any shopping that week. I know it may be difficult for some, and it's not for everyone, but it does help us. The hard part is staying out of the stores for an entire week! The more stores you go in, the more enticed you may be to spend $$.

The first couple of months we went over our $190 budget but have since found our groove. With SBLB providing coupon match-ups to Canadian Budget Binder it has helped cut down time spent scouring the flyers each week. We also have more and more players which really makes us think while shopping. It's important to answer your own questions and understand your motivation for shopping. Be Mindful!
  • Do we really need this?
  • Will it put us over budget?
You are playing against yourself but at the same time are motivated to be better than the next person. We all want to see what deals we were all able to get and how much we all saved!

It's fun!  Come check it out.. come play... we also draw a winner each month to win a prize. Each week you post your shop you earn 1 ballot in the draw. Stick to the budget and you will come out ahead! 

Ways To Stick To The Grocery Budget
  • Use Coupons and get organized
  • Coupon Match-Ups- match your coupons to store flyer deals
  • Cheap/Discount Rack/% off stickers
  • Buy in Bulk when it's cheaper to do so
  • Share/Split with friends or family
  • Grow your own Vegetables,Fruits  and Herbs
  • Menu Plan this will help set your budget and list
  • Keep a Freezer Inventory List so you don't buy more than you need
  • Stick to an eating schedule and don't over eat
  • Shop when your are full
  • Shop when you have time, don't rush you will pay more $$
  • Shop later in the evening or early in the morning
  • Ask for discounts don't be shy, learn to negotiate
  • Price Match
  • Shop at local markets in the summer for cheaper produce and veg or pick yourself
Canadian Budget Binder is run by Mr.CBB. We're your average married Canadian couple in our 30's budgeting to live a comfortable life. We don't aspire to be Multi- Millionaires just to save money the smart way:)

Thanks so much for all the great tips Mr. CBB! 

HAPPY SAVING:)