Frugal Shopping: Grocery Edition

Grocery shopping anti-love...
Photo credit: Les Chatfield (CC-BY 2.0)

Grocery shopping: along with the dishes and the laundry, one of those depressing chores that is half necessary again by the time you've finished packing it away... and worse than the aforementioned, it requires the regular expenditure of fairly large sums of money!

Lots of us have experienced grocery shopping on a tight budget, especially near the end of the month. Lots of us have also experienced this curious phenomenon: when money is really tight, suddenly it is possible to spend so much less money at the grocery store than we previously thought possible. I thought I was buying only the bare minimum: but now it appears there is another minimum below my previous minimum - and I'm still perfectly well nourished. Magic!

Don't mess with my food supply!
Photo credit: Sodanie Chea (CC-BY 2.0)

But when frugality is a choice rather than a necessity, groceries and food are some of the most difficult and emotional things to save on. Why? Food is one of the essentials of life, so cutting down or changing diet (or even just brand) choices can feel like a drastic lifestyle change, even if the shift is relatively small. Fair enough: we have strong cave-man/cave-woman instincts to protect our source of nutrition! In addition, we often feel defensive of our food and grocery choices, because they are some of the most intimate choices that we make on a day to day basis.

However, just because our reluctance to make changes in this area is understandable does not mean we shouldn't make those changes: we need all the fuel we can get for the independence engine! We were already living fairly frugally, but in the six months after going postal on the Financial Independence Quest, we cut down our average monthly grocery bill by about R400. This may not sound like much, but remember: if we were to save that R400 per month, that is R4 800 extra to save every year. Assuming that this is sensibly invested and gains a quite achievable 7% above inflation for ten years, this could accumulate into R66 300! Maths evidence? Courtesy of the annuity formula (for regular savings invested in something that earns compound interest):

Okay, I hope you're convinced that it is worth trying to shave down your grocery bill, even by a couple of hundred rand. Here are some of the ways in which we managed to gradually improve our spending. Everyone is different, and so your strategies will be different to ours. But these might give you some ideas.

Regular Shopping Strategies

Go to the grocery store as seldom as possible. This saves petrol and time, but also means that you have to plan your purchases carefully to last till next time, and cuts down on the chances for impulse buying (mmm, that freshly baked bread smells amazing, let's just... sound familiar?).

Make a list, and stick to it. As mentioned above, impulse buying is the budget enemy. We are busy developing and trialing a Wunderlist shopping-list system, but pen and paper will do the same job.

Make a list. Stick to it. Even if there is a chocolate aisle.
Photo credit: hobvias sudoneighm (CC-BY 2.0)

Visit only the aisles necessary for your planned purchases. Although I do love wandering aimlessly through the aisles, this wastes time and increases the likelihood that I will spot something that I immediately need... but don't actually need. Like Ultramel custard on special. Stay away!

Use the reward cards... the free ones, obviously. But don't get suckered into buying things you otherwise wouldn't have. Redeem the points frequently: money saved this month is better than the same money saved next month. The money that stays in your bank account will earn interest :-)

Bulk Buying Strategies

Buy in bulk, but only when the cost per unit is genuinely better, and the increased bulk won't result in waste. Waste can be a result of increased usage (I have a huge block of cheese so I cut off a fatter slice for my sandwich) or expiration.

Buying in bulk can backfire...
Photo credit: Shlomi Fish (CC-BY 2.0)

Specials are brilliant but also dangerous. Make use of them only if you would have been buying the item anyway, and if the product won't go to waste (see above!). But do make use of them: buy lots!

Go to Makro. Yes, it's a mission, but once we've taken increased petrol consumption into account (our local Makro is further away than our local PnP) we usually save about 13%. We don't do this every five minutes, but stocking up on non-perishables and slightly-perishables once every few months is well worth it. Don't forget to follow the bulk buying guidelines though: we have been known to go a little Makro-mad and over-bulk (not a real word, but work with me here!).

Choice Strategies

Choose food that has a good cost per calorie, or, even better, cost per nutrient ratio. How much does each calorie of lentil cost, compared to each calorie of lettuce? Hint: much less. Mr Cent(ri)frugal has a spreadsheet (which he'll share with you in a future post), because he is a keen bean that way. It makes interesting reading. For example, although sunflower seeds are expensive per kilogram, they are excellent value per calorie, because you only need a few to get full. In fact, my school lunch of about 160 g of seeds, nuts and raisins, is both cheaper and more nutritious than a sandwich, though it obviously requires supplementation with vegetables and so on in the evenings. The basic principle seems obvious: choose items that are cheap, but rich in nutrients over expensive, nutritionally empty items. The detail, when you really work it out, is often surprising, and probably deserves a post of its own.

Don't be snooty. Pick and Pay or Checkers are acceptably close in quality to Woolworths for most items. The in-store brand is often indistinguishable from more well known brands. If you feel there is a real difference, actually work out exactly how much more you are paying for an equivalent product: in most cases it isn't worth it. (That being said sometimes the generic just doesn't cut it - but you first need to have really tested it before you cut it from your list.)

Keep your eyes on the goal: is the better coffee, the out-of-season fruit or the imported luxury item more important than financial freedom? Is it more important than being able to quit your job (or go part time) and spend time with your kids? Nope, I didn't think so.

Even if some previous shots have gone astray... keep your eye on the target!
Photo credit: Pete (CC-BY 2.0)

If you'd like to read more about this interesting topic, here's what Mr. [sic] Money Mustache [sic] has to say: shopping with your middle finger, and killing your $1000 grocery bill. He is the original, and always good value. (He also talks about cost per calorie if you can't wait until we get to it!)

May the grocery-force be with you!
jjdaydream

How to Spend Money

Um... hang on. Isn't this blog supposed to be about saving money, not spending it?

Well, if you really think about it, spending and saving are predicated upon each other. If you spend badly, you'll have nothing to save. And if you don't save, you'll have nothing to spend.

So yes, in this post, I'll be talking about when and how to spend money on things that are wants rather than needs, and that are significantly expensive, without breaking the budget, regretting your buys or wasting money. Believe me, it is way too easy to do all of those: and I've made spending mistakes way too often. It is out of some of those mistakes that this blog post was born.

So, how should I spend money?

First Things First

Put all of your saving, debt repayments (hopefully zero), giving and essential fixed expenses (like rent) into debit orders that go off as soon as you get paid. Commit to NEVER EVER EVER using the credit card to a greater balance than you still have tucked away in your bank account. Then you literally won't have the money to make catastrophic errors: it will be safely tucked away, out of the reach of impulse buys.

This really shouldn't be optional.

Assuming that this is done, and that you have carefully worked out that you do in fact have the money to buy whatever it is... what next?

Acknowledge previous mistakes

In order to learn from our mistakes, we need to reexamine why we made them.
Photo credit: Andy Maguire (CC-BY 2.0)

We've all bought that gimmicky item that looked so good in the advert or on the mannequin. Spending well starts with accepting that sometimes you've spent badly, and identifying why you did so. Are you a sucker for good advertising (like I am)? Do you buy expensive items if you're hungry? Do you make excuses for buying too many clothes? 

Acknowledging your weaknesses will enable you to avoid repeating mistakes. 

Get a second opinion

If you know that a certain area or type of expenditure is a danger spot for you (because of course you acknowledged past mistakes!), get an (honest) second opinion from someone that (a) you can trust and (b) will give you a sensible opinion. Often a spouse or sibling is a good option: you don't want someone who would be afraid to hurt your feelings by saying HELL NO!

Sometimes you just need someone else to tell you NO!
Photo credit: sboneham (CC-BY 2.0)

Sad but true: often when I've asked for a second opinion it is because I have a sneaking suspicion that this expenditure would not be a good idea... knowing that you should ask can be your brain's safety catch when you actually know that you shouldn't.

Sleep on it

We're assuming that this projected expenditure isn't a need. Your life doesn't depend on having it. In which case, there is no rush. Don't fall for the sales-chatter: go home and think about it; for several days, weeks or months if necessary, depending on the size of the expense. Often by the time you get back to your car (or bicycle) you'll find that you don't really want it that much. Impulse buys are definitely the enemy of sensible spending.

In many other cases, even if you still want it, a small amount of research will reveal a better or more economical version of the thing you desire. Calmly looking at the options online may also remove the psychological pressure of having a salesperson hovering over you and telling you all the reasons you should buy it immediately (though in my opinion if someone is pressuring you to buy, you should walk away immediately, as a matter of principle). Either way, waiting a while means you'll be able to make a smarter, more informed decision.

Sleep on it: given how much they sleep, kittens must make the BEST DECISIONS EVER. 
Photo credit: Moyan Brenn (CC-BY 2.0)

If nothing else, you'll be more confident that you really do want it. And I've spoken about the benefits of delayed gratification before, right? 

Does it improve your quality of life?

So, how do you know if you really want it? I like to ask myself a series of questions regarding the difference that this item is going to make in my life:

Is this item going to improve my quality of life

1. Tangibly? (e.g. not a new set of dishes almost identical to my current set)
2. Permanently? (e.g. not a fashion item that won't be wearable next year)
3. Ethically? (e.g. not a new car which guzzles petrol and destroys the planet)
4. Sensibly? (e.g. I will still be able to buy groceries for the rest of the month)

If the answer is yes to all of those questions, you've slept on it, and you've consulted your trusted buddy about it, then I wouldn't feel bad about going for it! Life is meant to be enjoyed. You've saved, you've given, and you've been prudent. You've thought very carefully about whether this will really improve your quality of life. So, go ahead and enjoy it!

Go ahead, take a bite of that ice-cream!
Photo credit: Jökull Auðunsson (CC-BY 2.0)

To wise, successful spending!
jjdaydream