How to save on groceries
Hello again,
This time I’ve got some great ideas on how to save on groceries – something that everyone spends money on. First of all, the best thing you can do for yourself is clip coupons. If you spend 15 minutes going through the coupons in the Sunday paper, and you find only $5 worth of coupons that you can actually use, you may think that it’s not worth it. But think about it – you just paid yourself the equivalent of $20 per hour. Do you make that much now? My guess is that if you are taking this challenge, you aren’t making $20 per hour. Now imagine that you save $5 every time you go to the grocery store because you clipped coupons. If you go to the grocery store once every other week, that means you can easily save $130 dollars per year.
The next thing you can do for yourself is sign up for the loyalty card of your grocery store if they have one. The difference in prices with the card is ridiculous. This can save you a ton of money…for the rest of your life. So for taking 10Â minutes to fill out the application you are probably paying yourself hundreds of dollars within the first year of using it, and thousands over the rest of your life. No lie. Some of these cards will actually double the value of your coupons too, giving you even more savings.
The next thing you can do for yourself is pay with a credit card. Of course, this only helps if you get rewards for spending, and if you pay your balance every month in full (so you don’t pay interest). If you do use credit cards, the biggest tip I can give you is to not spend more money than you have in your bank account. Treat it as if it is a debit card withdrawing directly from your account. That way you don’t end up getting into debt you can’t pay off or paying excessive amounts of interest.
One credit card that I think is a particularly good deal is the Chase Freedom card. It pays 3% cash rewards in the 3 categories you spend the most money on. One of those categories is groceries. Another one of the categories is gas. These are probably your biggest expenses anyway, so why not get money back for the things you spend money on anyway? If you spend money in more than three categories, the ones that aren’t getting 3% get 1%. Some cards only give you 1% to start and even less than that on certain purchases. Another thing I like about this card is that it gives you $50 for using it the first time. So even if you only use it once, you can get something for free!
One last tip I have for saving money on groceries is to shop at discount stores or member clubs (like Sam’s or BJ’s). The member clubs are only really helpful if you spend a lot on groceries and don’t mind buying things in bulk, but they can save you a lot of money. In terms of the discount stores, there is one I would like to point out specifically: Aldi. These stores only exist on the east side of the U.S. right now, but if you live near one, the savings you get out of it could be huge. The prices are 40% – 50% less than normal grocery stores. The only thing is that they only carry one brand: their own. However, all of their products have been tested and they claim that they are as good as or better than national brand names in taste and quality. If you are not satisfied, they will not only replace the product, but actually refund your money for it too.
I hope this helps. Any one have anything that they might like to hear me rant about? I’m open for suggestions. I don’t claim to be an expert, but I would like to help in any way that I can. Let me know what you think.
-Brad
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Hi Brad. My name is Landis from Greenville, PA. I have a question for you. We are a family of four and we haven’t used credit cards since I was born(18 years) and we’ve done pretty well with staying on track and even saving money. On the other hand, my aunt and uncle are only a family of 2 and buy everything, I mean EVERYTHING, on a credit card. They are also good with money and save a lot throughout the year. They are in the same position as us and save about the same also. How is that so? How do you decide which process is easier to live off of?
Also, as a current college student, how do you find the easiest way to pay off student loans and save all at the same time in order to live off of what you have? Just curious. I know I have a couple more years to prepare but soon is never too soon.
GREAT question Lando,
For the credit cards–it’s really a personal choice. If you are responsible, pay on time, and only buy what you can afford–credit cards can be an excellent option (there are plenty of rewards programs out there)
For the loans–You go to school BECAUSE you take out student loans. You don’t need to worry about paying them back until 6 months after you graduate. My advice would be to borrow as little as possible. The tighter budget you put yourself on from the getgo, the less indebted you’ll be when graduation time comes.
Keep in mind the fabulous blog entitled “How to Responsibly Buy Yourself Something Silly”. It has a great way to figure out and prioritize your expenses.
http://www.studentplatinum.com/student-credit-card-blog/2008/06/17/how-to-responsibly-buy-yourself-something-silly/