80% of consumers have noticed an increase in the cost of groceries and many worry about how much they are spending on food. Some have turned to skipping meals or sacrificing other necessities while others rack up credit card debt just to keep up.
There is definitely a good reason to optimize your spending at the grocery store as it can easily balloon especially if you’re a parent who is providing for children or a larger family.
I strongly recommend my C.A.S.H strategy to anyone who is trying to save money. Examine your motivations and put together a practical strategy that will work for you.
Spending less money on groceries is more than cutting costs – it’s about embracing a mindset that values problem solving, creativity, resourcefulness and gratitude.
What is a realistic grocery budget for 4 people?
The average cost of groceries for a family of 4 averages out to $150 – $200 in the country’s currency. I spend about $850 a month on groceries.
Prices of food and groceries vary greatly across the world and even in different states in the same country. Of course costs vary vastly based on diet, food choices, location, type of supermarket.
| Country | Cost of Groceries for 4 Home Currency | Cost of Groceries for 4 USD |
| US | $1000 – $1500 | $1000 – $1500 |
| UK | £640 – £800 | $800 – $1000 |
| Australia | AU$800- AU$1000 | $500 – $630 |
| Singapore | S$800 – S$1500 | $590 – $1105 |
What is a smart way to spend less money on groceries?
If you’ve followed me on Instagram, you know I am a fan of systems and processes. I believe in truly learning a skill and setting it up to make it on your own so that you can repeat it over and over again.
Plus you’ll only get better at it, giving you a 100% chance of success in saving money on food.
I’d like to introduce my system C.A.S.H, which is the smartest way to actually reduce your food cost because you create a system that you can repeat over and over again. Consistency and repeatability are great components of success.
I created it after helping myself and my friends save money over the years. It is a four-step process that is very easy to follow.
I have this exact method to understand how much I spend on coffee and came up with my own strategy to enjoy a great cup and still save money. Over the years, I have saved at least $7200 on coffee.
It helps you get deep in your motivations for saving on food and devises a strategy that guarantees success.
I’ll be launching a completely free in depth ebook to help my followers save money. There are detailed explanations with tips, strategies, journal prompts and free google budgeting sheets. So, if that sounds like something you would benefit from, remember to subscribe to my newsletter and follow me on Instagram so that you don’t miss the release.
Step 1: Comprehend your situation
Understand your why
The most common reason why people want to spend less money on groceries is to reduce their monthly expenses.
It could be due to a long term savings goals such as saving up for the downpayment of a house or an emergency fund. Or, it could be to enjoy a healthier lifestyle as you save money on unhealthy food or take out and allocate more funds towards high-quality, nutritious food.
Sometimes a loss in income due to change in family situation, health emergencies or the passing of a loved one can also require us to look into how much we are spending on food.
Regardless of your situation, understanding your why and writing it down in a journal will help you connect deeply with your goal and stay motivated.
Look into how much you are spending on groceries
Get a good understanding of what you are currently spending on. Knowing where your money is going makes it easy to pinpoint areas where you can cut back on. I will suggest using a simple google sheet to track your expenses for the month and categorise them by type, purpose or place. You could also save receipts or download your card statements for exact numbers.
Some common areas to look into are expenditures on:
- Take out
- Restaurants
- Food delivery
- Snacks
- Grocery stores
- Grocery delivery
- Online stores
These areas often contain spending traps where we fall into costly habits of impulse buying, picking up extra snacks not on our grocery list or depending too much on food delivery services.
Once you have a clear idea where your money is going, you can be more strategic in the next step.
Practice gratitude
Some life deals us a hard hand, it can be difficult to feel thankful for the challenges or suffering we face. Resentment we hold towards having to spend less money on groceries can come back to bite us. You might justify splurging on takeout or fancy produce as a way to “treat yourself” for enduring the sacrifices, which ultimately erases any savings.
Take a moment to appreciate what you have (even if little). Here are some suggested journal prompts.
- Who or what made your meals possible this week? (e.g. farmers, loved ones, your effort, a friend)
- What are some pantry or fridge staples you are thankful for?
- What inexpensive comfort meal do you enjoy?
- Think about a time when you resourceful with food. What did you learn?
- What’s something you used to resent about food budgeting that you now appreciate?
- How does focusing on gratitude help you feel less deprived and more fulfilled?
- What’s one aspect of your food budget journey that has unexpectedly enriched your life?
Step 2: Adopt smart strategies to spend less money on groceries
There are three stages to apply strategies – budget, meal plan and the actual shopping. Having a realistic budget and simple meal plan is more than half the battle won.
Strategies to Budget Smart for Groceries
Saving money on groceries starts with a realistic and frugal plan. It won’t restrict you because you will prioritise the products that matter the most to you and your family.
Decide how much you want to spend on each meal
You know your family best. Decide how much you need to spend (or can spend) on each meal. For a family of 4, I like to spend on average $2 on breakfasts and $10 – $20 on lunch and dinners.
Allocate your budget for different types of products
Here is how I allocating my total budget amongst different items. My grocery bill also includes soaps and detergents since we get all that at a supermarket so you will notice that the percentages below do not add to 100.
- 30% – proteins (meats, seafood, poultry)
- 25% – carbohydrates and fibre (rice, pasta, wraps etc.)
- 20% – healthy fats & diary (cheese, avocados, milk, butter)
- 5% – fibre (leafy greens, root veggies etc)
- 5% – condiments and snacks (sauces, spreads, seasonings)
- 10% – discretionary
Have save meals and splurge meals
Adopt a save some splurge some mindset. Create low cost meals to save money and put money saved towards higher cost meals that your family enjoys eating. Use lower cost and fewer ingredients to create your save meals. Depending on where you live, your save meals can cost anywhere between $4 – 10 for a family of 4. In Singapore where I am, my best save meals cost $8 – $10. Below that, one would have to resort to ultra processed foods like instant noodles.
Allocate money for discretionary items
Create a 10-30% buffer in your budget for items not on your shopping list. I let my kids pick up single pack chocolates or sweets and chips occasionally as a treat.
Strategies to Plan and Cook Smarter
Meal plan
Planning your meals for the week helps avoid impulse buys and ensures that you only purchase what you need. It saves money as you can reduce food waste and incorporate low-cost versatile ingredients into multiple meals.
Incorporate non-meat protein
Plant-based proteins like lentils, beans and tofu are usually cheaper than meat. I recommend using them to add protein to meals while keeping costs low.
Add more veggies to your meals
Vegetables like cabbage, carrots, potatoes, sweet potatoes, spinach, onions (and many more) are staples that are inexpensive. They add fibre to a meal, keep us full for longer and reduce the number of calories we consume. Overall a great strategy to reduce cost and eat health.
Meal prep
Prepping meals in advance will ensure that you have ready-to-eat options especially on a busy and stressful day, reducing the temptation to order takeout. Knowing exactly how much of an ingredient you will need will help you spend less money on groceries because you will buy exactly what you need and reduce wastage.
Make your own snacks and drinks
It is very easy to make your own granola bars and iced latte at home. Find recipes with commonly found ingredients to keep costs low. It is proven that having a good quality espresso machine saves you money in the long run. Homemade versions of snacks and drinks are usually healthier and cheaper than manufactured snacks.
Have low cost emergency meals for days you don’t feel like cooking
Stock your pantry with inexpensive, easy-to-make meals like pasta, noodle soup or frozen dumplings. These save money and time on days when cooking feels like too much effort.
Freeze your own fruits and vegetables
If fresh fruits and vegetables are on discount, you can pre-slice them and freeze them for smoothies, baking or snacks. This not only extends their shelf life but also eliminates the need to buy costlier pre-frozen options.
Freeze your meals
Cook larger portions of low-cost meals you enjoy like soups, stews or casseroles and freeze individual servings. This reduces waste and also saves money as you can buy in bulk.
Learn to cook or improve your cooking skills
Many common restaurant dishes can be easily made at home, even from scratch. Some pre-made sauces are affordable and can be easily used to whip up your favourite dish. One of my favourite fancy things to make at home is truffle fries. It often costs at least $10 (not including tax, tips and service charge) to order it in a restaurant. So, we invested in a cheap but good bottle of truffle oil and bought a block of parmesan. It costs less than $5 to prepare truffle fries at home. That is $5 of savings at least!
Strategies to Shop Smarter
Use a grocery list and stick to it
Once you have a meal plan, list down the items you need to buy. I prefer to shop without my children most of the time as they often are interested in items not on my list. Stick to the list to avoid unplanned or unnecessary purchases.
Maximise rewards and cashback
Many credit cards, in house reward systems will give you discounts or rewards for your spending. Find a few that suit your family’s needs and to make the best of them. I use the UOB Ladies Card to get 10 miles per dollar on our groceries.
Check unit prices
Calculate the price per unit (e.g., per gram, ounce or litre) rather than the total cost. This helps you determine which brand or size offers the best value.
Shop the perimeter of the grocery store
Fresh foods and produce are usually placed at the perimeter of the grocery store. Avoiding the middle aisles can save you money as you spend less on ultra-processed snacks.
Shop on a full stomach
Consumers tend to buy more when they are hungry. When you’re full, you’re more likely to deviate from your grocery list. Everything looks good!
Look out for products above or below eye level
It costs more to place products at the consumer’s eye level for better marketing. Popular brands may often be placed there and may cost more. Explore and try out less popular brands placed on other parts of the shelves to discover less expensive alternatives.
Shop seasonally
Buying produce that’s in season is often cheaper and fresher. Products often cost more at the start of a season due to demand supply. Towards the end of the season, excess produce are usually sold at a discount. I love buying these in bulk. If I can incorporate it, into a meal I can batch cook and then freeze.
Opt for frozen over fresh
Frozen meats are often cheaper than fresh ones. In some places, frozen fruits and vegetables are cheaper too. Observe the prices where you live and opt for the cheaper option. Technology has come a long way and frozen foods are just as nutritious as fresh produce. And since you only use what you need, you prevent waste.
Buy housebrand items
House brands, or store brands, often offer the same quality as branded products at a fraction of the cost. If you are brand conscious, this strategy will really shave your grocery bill.
Buy ingredients on discount
Most grocery stores offer discounts year round on a variety of products. If you plan ahead, you can keep an eye out for sales and markdowns. One of my favourite things to do is to buy discounted blueberries and freeze them for smoothies. It takes next to no effort and I get frozen blueberries for cheap!
Buy in bulk
Purchasing staples in bulk especially when house brand products are on discount is one of my favourite ways to save money on groceries. I store them properly and ensure that I know I can use them before their expire date. This is a great strategy for staples such as rice, pasta, flour and UHT milk.
Shop in affordable grocery stalls
Check out the price of goods around your area and stick to budget-friendly grocery stores. They often lower prices without compromising quality.
Compare prices across stores
This takes a little effort but it can save you money in the long run. Monitor the prices of categories of foods from different stores. Make it a point to visit these stores periodically to stock up. For example, I buy nuts in bulk from a Chinese grocer but rice and other staples from a local discount supermarket.
Use paid memberships wisely
Unless you plan to shop frequently at the same store, avoid opting for paid memberships for discounts. If you do think it’s worth it, do your calculations to make sure you can “break even” the cost of the membership sooner rather than later.
Start small, stay strong
To install a habit, start small. Then stay strong by repeating it. Each time we repeat it, we stretch our habit muscle a little more. Repeat it enough times, it becomes an integral part of us.
When it comes to saving money on groceries, adopt one to two habits from each category (plan smart, cook smart & shop smart). Repeat them weekly and each time you are at the grocery stall. You will see that in no time, it becomes a part of you.
This methodology prevents relapse into old habits ensuring long term success so that you not only save money this month, you can do so every month from now. I am sure even $50 of savings will go a long way for you and your family.
Step 3: Hone your results
Monitor how much you spent at the supermarket each week / month. Keeping track of your spending habits allows you to see how far you’ve come. When you see that you’ve actually spent less and saved any money.
Sometimes we don’t see exactly the results we want. Some weeks might not go as planned and that’s okay. Whether you overspend or ended up with food waste, remember that there are no problems also projects. Acceptance and gratitude (see C of C.A.S.H) helps you stay focused on your why instead of dwelling on setbacks.
Step 4: Reset and start again
I like to set weekly goals instead of monthly goals as weekly goals reset faster. There are 52 weeks in a year but only 12 months so we get 52 chances at our goal to spend less money on groceries instead of 12. Next week never feels too far away but the next month can feel like a long time.
At the end of each week, reset and give yourself a fresh start. You can restart the C.A.S.H system from the top again. Comprehending and understanding how the previous week went, adopting your strategy for the next week, staying strong and then hone your results again.
Do this for 52 weeks in a row and I am sure you will have a good handle on your grocery bill in no time.
