When I moved out on my own and had to cook all my meals for the first time, I often overspent on groceries. Because food is a necessary, variable expense, it can be difficult to set a reasonable grocery budget. It’s easy to go overboard and spend too much on prepared foods and takeout, especially if you’re just learning how to cook. Here are some tips I used to find the sweet spot with my food budget and nourish myself without draining my wallet.
How Much Should You Spend on Food?
Use USDA Food Plans as a Guide
Every month the USDA publishes several food plans that outline current grocery costs. There are usually four different price tiers: thrifty, low-budget, moderate, and liberal. The thrifty plan may require you to eliminate extras like soda and chips, whereas the higher tiers include more financial wiggle room for snacks and specialty ingredients.
Each price tier has a corresponding chart that enables you to estimate your food costs based on the ages and genders of all your family members. This allows you to create a realistic grocery budget that will meet the varying nutritional needs of everyone in your household.
The USDA’s food plans are a good starting point for determining your food budget. However, you may be able to reduce your grocery spending further, especially if you’re willing to shop sales and get creative in the kitchen. If I followed the thrifty USDA plan for my household of two, I’d be spending roughly $550 per month on groceries. But I’ve been able to whittle our food spending down to about $400 per month by cooking mostly meat-free meals and clipping coupons.
As you become a savvier grocery shopper, you may be able to spend less than the USDA’s suggested amounts. This leaves more room in your food budget for luxuries like fast food and takeout.
Limit Your Food Spending to 10% or 15% of Your Income
You can also calculate your food budget based on a percentage of your income. Finance experts recommend that you spend no more than 10% to 15% of your net income on groceries and eating out. So if you take home $4,000 per month, you should budget between $400 and $600 for food.
However, if you’re trying to feed a large household on a limited income, this rule may not work for you. In that case, you may need to cut back in other spending categories like entertainment to top up your grocery budget.
Follow the 50/30/20 Rule
Another rule you can use to set your grocery budget is the 50/30/20 rule. This budgeting guideline suggests that you spend 50% of your take-home pay on your needs and 30% on your wants. The remaining 20% goes toward savings and investments.
To calculate your food budget based on this rule, divide your take-home income in half. This is the amount you’re supposed to spend on needs. Then subtract the cost of all your essentials (besides food) from your necessities budget to arrive at your food budget.
With the rising cost of rent and gas, this calculation may only give you a bare-bones food budget. Luckily you can dip into your “wants” category to buy extras like snacks and takeout if desired. Just make sure you’re not overspending on wants and still budgeting 20% of your income for savings.
How to Course Correct If You’re Overspending
When I finally learned how to calculate a reasonable food budget, I realized I had been overspending by a couple hundred dollars per month. I was simply copying what my mom did, but she was shopping for a family of four with frequent visitors. When I first moved out, I was only cooking for myself, so I didn’t need to stock the pantry to the same extent. I also realized I couldn’t afford to shop at the same stores my mom did because I was working with a smaller income.
Pantry Challenge
The first thing I did to course correct was do a pantry challenge. If you’ve been overspending on food, you probably have lots of food packages at the back of the pantry and freezer you’ve forgotten about. Try to use those up before going grocery shopping for more ingredients.
Watch Budget Grocery Shopping Videos
Next, I watched budget grocery content to learn how to bargain shop. I subscribed to Frugal Fit Mom on YouTube, who usually feeds her large family for around $400 per month. I learned a lot about clearance grocery shopping, weekly sales ads, salvage stores, and bakery thrift outlets from her, which helped me drastically decrease my food spending.
Follow Free Meal Plans
You can also take advantage of free meal plans available online. Many websites put together weekly shopping lists and recipe ideas that you can download and follow. All you have to do is Google “weekly meal plan for $X budget” and you’ll get tons of helpful results.
Find Takeout Alternatives
If takeout is your kryptonite, switching to frozen meals can be a bit more affordable. It may also be cheaper to order meal kits from Blue Apron or Hello Fresh for a while to help you get used to cooking for yourself. And don’t forget to check out the articles linked in the “read more” section, which can teach you other money-saving grocery hacks.
What are your favorite grocery shopping tips? How do you set a reasonable food budget? Let me know in the comments!
Read More
Sticking to the Grocery List to Save Your Budget
Quick Tips For Grocery Price Matching
Healthy Grocery Shopping Tips: Keep You (And Your Wallet) Lean!
Beat Inflation and Stay Healthy With These 7 Low Calorie Fast Foods
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Image and article originally from www.savingadvice.com. Read the original article here.