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Have you ever checked out at the grocery store and thought “Holy smokes! How did I spend that much money?!” If so – you’re not alone!
Grocery spending accounts for roughly 5% of disposable income and is typically the highest expenditure after housing. It can be difficult to keep your grocery spending in check with so much variety to choose from. In fact, the average number of items offered in a store is over 28,000!
Although spending money on food can be high, there are ways you can save money each month. Here are 15 smart ways to save money on groceries:
1) Make a grocery budget
If you haven’t already created a budget that includes a line for groceries, start there. First, take your net income (after taxes and deductions) and subtract out your fixed expenses.
This would include housing and any student or car loan payments. The amount left can then be split up into different categories, one of them for groceries. Be sure to allocate the largest amount of money to this category.
And you’re unsure of what to realistically budget for groceries, start by tracking your spending first. After 1 month of tracking, you’ll have a good idea of how much you spend.
After 3 months you’ll start to see a trend. Then you can determine if you need to cut your spending to make it fit into your overall budget.
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2) Create a grocery list
One of the common ways to not save money on groceries is to go to the grocery store without a list is a big no-no. You’re more likely to buy items just because they are on sale and not because you really need them. When you buy ingredients for meals you think you’ll make but don’t, you’re wasting food and money.
Make sure you take a list to the store, either on paper or on your phone, every time. If you prefer to have an app help you keep track of your list, here are a few options:
- AnyList – ability to share with your partner
- OurGroceries – can sort into different stores
- Avocadolist – can add in price estimates
- Bring! – connects to Google Assistant
Whatever method you choose make sure you don’t leave home without it!
3) Check your pantry for stuff you already have
When you get home from the store and realize you already have one (or even two!) of the same item you just bought. Ugh…
To prevent this problem, take inventory of your pantry before you head out to shop. Many times we head to the store and think we need something, only to realize we already had that item at home.
Look at your dried and canned foods as well as condiments and other commonly used ingredients. If you see something that you’re not out of yet, consider adding it to your list to stock up before you run out. Or add to your list and see if the item is on sale before you buy. You can also make a separate list of items you aren’t purchasing now but will need by the next trip.
If you really want to save money, challenge yourself to use up most everything in your pantry before you head out to the grocery store. You’ll save money and waste less food in the long run.
4) Download cash back apps
If you want to save money on groceries without a lot of extra effort, consider downloading a cash back app. These apps reward you after you spend by giving you cash back to use in stores or online. To earn cash back you typically scan your receipts after shopping or scan barcodes while shopping.
There are lots of great cash back apps you can use including:
- Rakuten – best for online shopping
- Ibotta – includes Target, Walmart, Publix, Sam’s Club, Kroger, CVS
- Fetch Rewards – can use any receipt from any grocery store within 14 days
- GetUpside – links to grocery stores, restaurants, and gas stations
- CheckOut51 – can use the coupons (ex. $1 off eggs) at a number of stores
- ShopKick – can use your location to find nearby stores with extra sales
- Coupons.com – can link store card or submit the receipt
While these options may overwhelm you, don’t be. Just choose one or two cash back apps to start and see how you like them. From there you can decide to drop one or add a different one and compare.
FREE Daily Expense Tracker!
>> Your FREE 365-Day Tracker that can help you track daily expenses!
>> 12 monthly sheets for ease of tracking expenses
>> Customized for every year and no updates required
5) Use coupons
While apps give you cash to use after you’re done shopping, coupons help you save money on groceries before you go. Before you head to the store, browse through your local coupon mailers to find coupons for items you know you’ll be purchasing.
But beware!
Don’t clip coupons for things just because they are a good deal. If you wouldn’t buy the item without a coupon, don’t buy them with one. If you save money because it’s on sale but don’t use it, it’s not worth it. Unless it’s something you don’t purchase because it’s normally “too expensive”.
If you don’t receive mailings from local stores you can search their websites to see what coupons are available.
6) Plan your meals for the week and shop accordingly
I know, I know.
Meal planning can feel like A LOT of work. It’s a popular way to save money on groceries though, for good reason. By going through the week and outlining what meals you’ll be making you can determine exactly what ingredients you need.
This will help you to eliminate buying unnecessary items and give every purchase a purpose. Meal planning also helps you stretch certain items over the course of several days, or turn leftovers from one meal into a new one.
If you’re new to menu planning, start by determining what nights you’ll be home for dinner during the week and what you’ll make for dinner those nights. You can search for recipes and create an online Pinterest board or print out recipes and create a binder.
7) Hold on to your horses & stick to the list
Grocery stores can be so tempting with their colorful displays, delicious samples, and deep discounts. Because of this, it can be easy to blow your grocery budget before you even realize what’s happening.
When you plan your meals out and have a list ready with the ingredients you need, stick to it. It may be tempting but it will guarantee you don’t spend money you didn’t mean to and save money on groceries. Believe me, your budget will thank you.
(And if you struggle with impulse buying at the store take a peek at tip #13!)
8) Compare store brands vs. popular brands
Store brands are the best thing that’s happened to groceries since sliced bread.
Due to the increase in popularity more stores are creating their own brands including Costco, Sam’s Club, Target, and Whole Foods. When comparing these brands to popular name brands you’ll notice that they are much cheaper but with the same or similar ingredients.
Check out the labels and price to see if it makes sense to buy the store brand vs. popular brands. They may taste a bit different, but if you can get past your brand loyalty your wallet will reward you.
9) Check unit prices
When purchasing items that come in packs, you may think it makes sense to buy the cheapest option.
But wait!
Many times the lowest price doesn’t necessarily mean the cheapest overall. By analyzing the unit prices you can determine what each item, ounce, or another measurement really is costing you. From there you can choose the cheapest option based on the cheapest unit size.
You can compare unit prices at bulk warehouses where they list it on the displays. You can also check the price tag on shelves to see the unit price. If you can’t find it you can do a quick calculation: total price/number of items = per unit price.
FREE Daily Expense Tracker!
>> Your FREE 365-Day Tracker that can help you track daily expenses!
>> 12 monthly sheets for ease of tracking expenses
>> Customized for every year and no updates required
10) Look for daily & weekly deals
Although you hopefully will have a plan and a list when you shop, you can still look for daily and weekly deals. For example, if you have strawberries on your shopping list but “raspberries” are on sale, you may decide to substitute.
Just because you head to the store with a plan doesn’t mean you can’t change if it means more savings. Plan your meals and snacks but leave some wiggle room for daily and weekly deals.
11) Buy in bulk if need be
Buying in bulk can certainly save you money on one condition: you actually consume it all! If you’re buying bulk because it’s cheaper but waste some, then it likely won’t actually be cheaper.
However, items that have a long shelf life or you know you won’t get sick of can certainly save you money. Costco or Sam’s Club are two retailers that specialize in bulk and can save you hundreds or thousands a year.
12) Use a cash back credit card so you earn money back
If you have a credit card, it’s likely that you can earn cashback on groceries. While you may be unsure of the rewards most cash back credit cards will offer at least 1% back.
However, some cards may run promotions or give closer to 2-5% back. Take a peek at your cards to determine which offers the best cash back for groceries and use it.
13) Leverage online shopping options (instacart, peapod, etc.)
If you’re known to impulse shop when you get to the grocery store, consider using online delivery or pickup options.
You can sign up for an account, fill up your cart and let someone else do the shopping for you! You’ll be avoiding the aisles and thus won’t be tempted to buy items, not on your list. Another perk is that you can search for what’s on sale and see what you’ve previously shopped for.
If you’re interested in shopping online and save money on groceries, here are some options:
- Walmart – both pickup and delivery options
- PeaPod – offers meal kits in addition to grocery delivery options
- Instacart – several different store options to choose from
- AmazonFresh – free for Prime members
- FreshDirect – mainly on the East Coast
- Thrive Market – best for organic and all-natural choices
- Shipt – for Target grocery deliveries
FREE Daily Expense Tracker!
>> Your FREE 365-Day Tracker that can help you track daily expenses!
>> 12 monthly sheets for ease of tracking expenses
>> Customized for every year and no updates required
14) Don’t shop empty stomach
Grumble grumble.
That is NOT the sound you want your stomach to make when you’re at the grocery store. Just like going to the store with no plan is sure to backfire, same goes for shopping on an empty stomach.
When you’re hungry you’re most likely to impulse buy foods that look yummy. Make sure to eat a meal before you head to the store. Or if you’re out running errands, pack a snack to eat before you head in.
A full tummy means more likelihood you can focus on your list and stick to your budget.
15) Ensure the cashier does not double count items
When your cashier rings up your bill, take an extra minute to look through your receipt. If you can’t take a quick glance in the store, make time in the car or when you get home.
Mistakes can be made and be easily overlooked. Take a quick glance to ensure the cashier did not double count any items. If you find mistakes be sure to point them out and get a refund.
Final Thoughts
Although grocery store spending can equate for a lot of your monthly take home pay, there are plenty of ways to save. And no, you don’t have to compromise on quantity or quality of food.
It just takes being strategic about your planning and shopping to find savings and stick to your budget!
What has your experience been? Please share your experiences, thoughts, tips, and ask away any questions in the comment section below!
