How To Create a Grocery Budget

Whether you live alone or have to feed a full family, grocery shopping can take up a lot of time—and money. While we all try our best to spend our money wisely, it can be hard to actually make a dent in your monthly expenses. And as food prices continue to rise with inflation, keeping track of how much you’re spending has become quite the challenge.

Thankfully, there are some ways you can save money on groceries without drastically changing your habits. Creating a grocery budget can go a long way, as it allows you to allocate a specific amount for your food expenses, prevent overspending on unnecessary items, and encourages mindful spending. It will also help you prioritize essential and high-quality foods over purchases you may regret.

Keep reading to learn more about how to create a grocery budget and other grocery shopping tips.

Examine Your Spending Habits

You should begin by getting a clear picture of your current spending habits and financial situation. List out all of your current monthly expenses, including rent/mortgage, utilities, entertainment, and more. If you commute to work, estimate the average cost of gas, parking, tolls, and any other fees that stack up. You should also look at how often you eat out or order delivery, as cooking at home is almost always a much cheaper option.

Track Your Expenses

After accounting for all of your non-grocery expenses, track how much you’ve recently been spending on groceries. Check receipts and online bank statements to get an idea of where your money is going and identify potential times in which you could have cut back or overspent. Continuing to track your grocery expenses is crucial for financial success, as it helps you make informed decisions about how to adjust your budget to set yourself up for future savings.

Set A Realistic Goal

When deciding how much to spend on groceries per month, the most important thing to remember is to be realistic. You may not receive massive savings right out of the gate, but if you stay committed to your budget, it will pay dividends down the road. According to the USDA, the average American spends around $220-$300 per month on groceries, though that can fluctuate depending on your individual situation. Look at your spending habits and set an attainable amount you can try to save as you begin in order to build up some positive momentum.

Prioritize Essential Items

A simple way to save money on groceries is to prioritize items that are necessary for your daily life. Make a list of everything that you need for a week or two and make sure to stick to it when you go to the store. This might include staples like bread and milk, fresh produce and meat, and other necessities like toiletries or cleaning supplies. Avoid impulse buying things like snacks and sodas and focus on the items that you need. This will ensure that you’re buying and consuming items that are essential and beneficial, saving you money on frivolous purchases.

Make a Menu

Between saving you money and helping you eat healthier, meal planning can be helpful for many people. Create a list of meals that you want to have throughout the upcoming week and all of the ingredients you will need to make them. Whether you want to prep everything in advance for easy grab-and-go meals or cook everything fresh, this will help you avoid wasteful purchases and only buy what you need. You can also freeze or refrigerate leftovers for additional savings, depending on what you make.

Shop Smarter, Not Harder

Comparison shopping for groceries is a savvy way to ensure you’re getting the best value for your money. Regularly check the price of products you frequently buy at different stores or online to find the most cost-effective place to shop. You can also explore rewards programs and other coupon initiatives in your area. This not only can help you save money but also will allow you to discover new stores or brands that offer better deals.

Save Money by Making a Grocery Budget Today

Creating a budget for groceries is an easy and powerful way to better utilize your money, both in the short term and long term. Whether you constantly eat out or are looking for ways to save a few bucks, budgeting is the best way to make sure you are spending wisely. It doesn’t take a lot of time to come up with a budget either; all it takes is some effort into examining your spending habits, prioritizing essential and well-priced items, and creating meal plans you can plan out in advance. As long as you stay committed, you’ll notice the savings start to grow in no time!

If you’re ready to partner with a bank that has your wallet in mind, contact Landmark National Bank today or find a bank branch near you.