Medicated Money

Wednesday, March 15, 2006

Cutting Those Bills - Grocery Bill

The grocery store is the great equalizer where mankind comes to grips with the facts of life...like toilet tissue!' -Joseph Goldberg

In our last post, we discussed reducing each of our bills by 20%. The first step in this series of posts will discuss about our monthly grocery bill. We currently spend about 25% of our monthly expenses on the grocery bill.

The Disease: Paying too much on groceries for two people!

A little background on this subject is that we normally go to the store at least once-a-week and spend about $175. This covers the basics for the week including food for dinners and weekday lunches. We normally go to the store 2-3 times a week after work to pick up additional ingredients or something quick for dinner. These visits normally cost us about $25-30 per visit. All in all, we spend about $850 on groceries/month.

The Prescription: Spend $600 or less on the monthly grocery bill

Plan: We think that the majority of our high grocery bill is due to poor planning. We suspect that with creating a weekly dinner plan and shopping based on this plan, we can eliminate the weekday visits that drive the expense higher. Secondly, we have joined Costco's this past weekend. Even though a membership card is $45/year, our goal is buy many items that are high priced at the local grocery store and items we use often in bulk. Our goal is to spend $200/month buying bulk items at Costco, and buy $75 to $100/week at the local grocery store! This would reduce our monthly bill by 30-40%; easily falling into our goal.

3 Comments:

  • Meal planning is the way to go! P.S. I saw your post a pfblogs.org, I love that site!

    Andy

    By Anonymous Anonymous, at 9:45 AM, March 15, 2006  

  • Is the $850/month for 2 people and does it include eating out? Wow, thats almost a rent payment for us. Our monthly grocery budget is $200 for 2 people. We go every 2 weeks and go to either a grocery outlet store or the local Cash & Carry which is like a small Costco, it has bulk food and sells some kitchen ware, but no membership fee. I've found that limiting how often we shop and avoiding the mainstream grocery stores has really helped keep the grocery bill low. Eating out comes from the discretionary fund.

    By Blogger kassy, at 1:06 PM, March 16, 2006  

  • No, $850/month is for 2 people and does not include eating out! I agree that this is expensive, hence our goal to cut it down.

    Kassy, how do you spend just $50/week ($200/month)? Do you eat out a lot. Our bill includes the fact that we buy many items for both dinners and lunches, as well as breakfast! I have hard time seeing only $200/month without eating out often or ramen noodles for every meal! If you eat most meals within this budget, that's close to $2.25 per meal. That seems very low!

    We would love to hear some of your suggestions to help us reach our goal!

    By Blogger Medicated Money, at 1:31 PM, March 16, 2006  

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