Stretch Your Food Dollar: How Do I Set a Food Budget?
For the past 6 months, we’ve been talking about different ways to stretch your food dollar. But I have been remiss at actually sharing any tips about how to set a realistic food budget in the first place. With the New Year right around the corner, many of us are reevaluating our finances and setting goals for 2009. It’s a great time to look at your family’s food budget and determine if you’re on the mark.
The USDA has a handy worksheet available to help you set a food budget that is appropriate for your household. They’ve calculated the average price of food over the past 12 months to arrive at their monthly food cost estimates. Using my household as an example, a two-adult household should plan to spend $447.10 a month on food if they are on the “low-cost plan.” Last year my partner and I spent an average of $400 a month on food, so we’re doing pretty good. If we want to go with the “thrifty plan,” we’ll need to cut our expenses to $352.50. But anything below that would be completely unrealistic (and probably a little unhealthy).
Many articles about stretching your food dollar advocate these four tips:
1. Never grocery shop when you’re hungry – you end up buying more.
2. Scout the weekly food ads to find out which store has the best deals.
3. Pay attention to coupons and see if your grocery store offers double coupon days or will honor competitors’ coupons.
4. Avoid buying products on the end caps, as well as pre-prepared convenience foods. The best deals are going to be found in the produce, meat, and dairy sections. Cooking whole foods isn’t just cheaper – it’s healthier, too.
If you’ve been following the series, you probably know that I’m a big advocate of #4. We’ve already talked about making your own stock and how potatoes can stretch your food dollar. We’ve also shared food storage tips so that your food isn’t ending up in the garbage can before you’ve had a chance to use it. Next week I’ll talk about making your own bread. And in the next few weeks, we’ll also be looking ahead to planting your spring garden to help offset the cost of your family’s produce.
For 2009, I am going to set a goal of spending $350 a month on food to help reduce our household expenses, and then I’m going to put the extra $50 into our savings account. How about you? Are you ready for the challenge?
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Great to know!
Food is the one spot I won’t skimp on, but I do skimp on everything else now. I spend about $250-$300/month on food just for myself and BF eats the other $250-$300/month.
It’s a lot of money, but we don’t go out to eat, shop for fun, drink, party, or waste money unnecessarily… so I think it’s worth the cash.
Fabulously Broke in the City
Just a girl trying to find a balance between being a Shopaholic and a Saver…
Hi FB – everyone has their own number that works for them. You’d be surprised that you can still eat organic foods on a “low-cost” budget if you’re able to hit the local farmers’ market and participate in a local CSA. My partner and I don’t live a luxe life. But I’m a foodie, so you know we’re not eating ramen noodles, either. My partner says eating at home is like eating at a restaurant every day. It’s honestly all about cooking whole foods at home and forgoing convenience foods (with a few exceptions).
Good luck to you for meeting your goals in 2009!
I agree with you there. I go out to eat So rarely now, so I don’t skimp on the grocery budget either, but I then feel better and am able to function well. (Also most of my food tastes better hands down, I know yours does too:)
I was able to shop at trader joes yesterday doing a full shopping (cupboards were practically empty, needed spices / olive oil) and get out of there for 87 dollars for the two of us.
Great Suggestions:
As you well know I’ve never been good at keeping to a budget, or planning a menu ahead of time. I’ve always just shopped when I had the money and then cooked with what I had available. It is getting harder now that I am alone that it was when I had family around to cook for. It all seems to be so much work for me – but you are right it costs less if you cook it yourself.
Hi Margaret – Cooking for one is definitely a challenge, especially if you don’t want to eat leftovers of the same dish several days in a row. On the other hand, you only have to please your own palate.
Normally I wouldn’t recommend convenience foods as a way of keeping your food budget down, but if they help you cook more at home I think they’re worth it. Trader Joe’s has many convenience foods that are actually quite reasonable. For example, their frozen orange chicken is only $4. There are 4 servings in the bag, so that’s $1 a serving. Definitely cheaper than ordering Chinese takeout. The nice thing about their convenience products is that the packages usually contain 2-4 servings, which is perfect for a household of 1 or 2. Sure you’ll have leftovers the next day, but that’s a bonus for someone who doesn’t cook very often – it’s one less day of cooking for you. I don’t, however, think that frozen boxed dinners are a good way to go. They’re usually $4-$5 a piece, they are high in sodium, and you can do much better on your own.
I’m currently doing ~150 a month. I lived on a lot less in my late teens and early twenties, in part because I got free food at work. If I didn’t, I would have been Skinny Cheap Bastard.
Oh, and a parting piece of advice: Rice and beans, people, rice and beans! And the stuff in the bag – no canned beans or rice-in-a-box! Freeze it up and you’re good to go!