How To Budget Groceries - 14 Money Saving Tips

Last Updated June 27, 2024 by Davina Kelly

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Are you looking for tips on how to budget groceries and save money? In this post, I will share some ideas.

Food is one of our biggest household costs and with inflation continuing to rise our shopping baskets are becoming more and more expensive.

Having a budget for groceries and finding ways to cut back is now crucial for our finances.

But it doesn’t mean we have to sacrifice quality. I will share some tips to help you shop in a smart way, save money, and still eat delicious food.

This post is all about how to budget groceries and save money.

Best Tips To Budget Groceries

1. Get Clear On Your Budget Goal

The first step when budgeting your groceries is to be clear on your goal.

This may sound obvious, but the reason this is important is that having a goal will provide clarity. It will also give you direction when you are putting your budget together and shopping for groceries.

For example, if you are currently spending a lot on groceries and your goal is to cut back, then you will be more inclined to look out for deals and shop at cheaper grocery stores.

Or if you are finding that you are wasting a lot of food, your focus will be on only buying the foods that you know you will eat and using up what you have before buying more groceries.

Think about what you want to achieve with your budget and use it as a guide.

2. Review Your Current Spending

When you are creating a budget for your groceries I would recommend reviewing your expenses to see how much you have been spending on groceries. This will help you understand your spending habits and show you where you can make improvements.

To do this you can log into your bank online and review your bank statement. You should review at least 3 months of spending so you can get a good overall picture.

Once you know how much you have been spending on groceries, think about how effective it has been. For example, are you spending $50 each week but finding the groceries doesn’t last you until the end of the week?

By putting your spending habits into perspective, you will be able to find the most effective way to budget your groceries.

3. Decide How Much You Want To Spend on Groceries

Deciding how much you want to spend is the most important part when creating a budget for your groceries.

This is because the amount of money you have to spend will drive your budget. It will dictate where you can shop and the types of groceries you can afford to buy.

You can decide to take a general approach and budget a percentage of your income for your groceries. For example, you could budget 10% of your income. If you make $2,500 a month your budget would be $250 a month for groceries. This would work out to be $62.50 per week.

Or you could base your budget on an average amount you want to spend per person each week. For example, $40 – $50 is the average amount people spend on groceries each week so you could use this as a guide. But if you have reviewed your spending habits and can see that you have been spending $50 on average each month and that isn’t enough, then you may want to increase it to $60

The best way to find the correct amount to spend on groceries is through trial and error. You can try a budget of $250 a month and see how it goes. If it works well then stick with it, if not adjust the amount as necessary. The important thing is to find what works best for you and your financial situation.

Tip:

I recommend keeping your money for your grocery budget in a separate account. Keeping this money separate will make it easier to track and it will also force you to spend more consciously as you will be shopping within an allowance.

Something to keep in mind is that groceries are a variable expense so the amount you spend will vary each month.

Some factors will affect this like special occasions such as birthdays, Easter, Christmas, etc. On these occasions, you will spend more as you may have family over and cook a big meal for dinner.

This is fine as long as you factor it into your budget. Being organised is the key to a successful budget.

4. Take Inventory Of What You Have At Home

It is important to go through the food you have at home and take inventory before you go grocery shopping. Doing this will ensure that you are only buying the food that you need.

Go through your fridge, freezer, and cupboards and write down all the items you have. Be diligent with this as you don’t want to end up going to the grocery store and buying items you already have at home. It’s annoying when that happens lol You can do this using a notepad or the notes on your phone. Choose the option that works best for you.

5. Create a Menu

When you are creating a budget for your groceries I recommend creating a menu, this menu will be the foundation for your grocery shopping. This way you are only buying ingredients that you need.

Think of the foods you like to eat every week and put together a few menu options. I recommend you organise it by meals, so you could have 2 – 3 options for each meal.

Here are some menu examples.

Breakfast:

Oats with fruits
Avocado toast
Smoothie

Lunch:

Salad bowl
Chicken salad wrap
Leftovers

Dinner:

Chicken with rice and veggies
Turkey chilli
Sausausages with mashed potatoes and gravy

Your menu is for your main meals as this will make up the bulk of your budget, but you want to include other things such as snacks, drinks, and maybe dessert.

For these smaller meals, you could buy one or two options and have them throughout the week. For example, for snacks, you could buy some fruit and a variety pack of chocolates.

You can put your weekly menu together and make a grocery list using the free printable menu I have included below.

However, If you don’t like thinking about what to cook but still want to stay within your grocery budget, I highly recommend this $5 dollar meal plan.

This meal plan service aims to help you by saving you time and money and relieving you of stress at dinner time. For just $5 a month, you can receive delicious weekly meal plans and grocery lists straight to your inbox. The great thing about the program is the meals only cost $2 – $3 per person! They also offer the option to try it completely free for 14 days. If you don’t like it you can cancel at any time with no problems.

Learn more about this $5 dollar meal plan and try it for 14 days for free!

6. Make a Grocery List

Now that you have your menu, you can make a grocery list. Making your grocery list should be easier now as you know which meals you will be eating.

For example, if you are going with the menu above your grocery list would look something like this.

Milk (long life lasts longer)
Oats
Fruits (frozen is cheaper and lasts longer)
Bread
Avocado
Spinach
Salad bag
Cucumbers
Beetroot
Onions
Wraps
Chicken (packet of chicken breasts)
Rice
Vegetables
Turkey mince
Sausages
Potatoes
Gravy

These are just the main ingredients, but you will need things like spices, seasonings, etc to add flavour to the meals.

A great tip when grocery shopping is to buy foods that can be used for multiple meals. For example, for breakfast, if my options are oats with fruits and a smoothie I can use the milk, oats, and fruits to make both of these options.

The bread and avocado can be used to make avocado toast for breakfast and you could also use it to make a sandwich for lunch. You could make some toast add the avocado then add some chicken and salad to make a nice sandwich. This way you are not buying food that can only be used to make one meal and you are making the most out of your groceries.

7. Buy Essential Foods In Bulk

A great tip for saving money when grocery shopping on a budget is to buy essential foods in bulk. The benefit of this is it usually works out cheaper to buy food in bulk than to buy it in smaller quantities.

Here is a list of the essential foods you could buy in bulk.

Rice
Pasta
Potatoes
Oats
Canned tuna
Peanut butter
Oil
Sugar
Honey
Spices
Long-life milk
Frozen fruits
Frozen vegetables
Beans

When buying food in bulk it is important to keep the shelf life in mind as the food could end up going bad and you will have to throw it away which will be a waste of food and money.

The upfront cost of buying food in bulk will be higher so this will mean that one week out of the month the amount you spend will be higher. But it will work out cheaper over time so it will be worth it.

The foods you buy in bulk should be based on the foods you eat regularly, that way there will be no waste.

8. Include a Meatless Meal Option

Having at least one meal a week that doesn’t contain meat is a great way to save money when grocery shopping on a budget.

There are many meat substitute options these days but you can keep it simple and replace the meat with vegetables or beans.

You can make many meat-free dishes such as salad bowls, curries, chilli’s and stir-fries. You can replace the meat with things like chickpeas, lentils, and eggplant, and add lots of vegetables.

Adding the correct seasonings and spices is key and will make your food flavourful so you won’t feel like you are missing out on meat.

Think of your favourite meal and try to make it meatless, you could surprise yourself and enjoy it.

9. Sign Up For Reward Cards

When you are trying to budget your groceries you need to shop in a smart way and take advantage of any offers.

Reward cards are a great way to do this. You can earn points while you shop, get your groceries for a cheaper price, and use the points you have built up to reduce your bill when you do a big grocery shop at Christmas for example.

I am seeing a lot more supermarkets include this in their business model now which is a win for the customers. In the UK Asda now has a rewards scheme where you can get 10% back when you buy star products or convert your cash pot balance into vouchers. Read more about it here.

Also, Sainsbury’s now offer groceries at a cheaper price to Nectar card holders, this is in a similar way to Tesco and club card members.

This is a great way to be rewarded for being a valued customer and benefit from cheaper prices without having to do anything extra.

10. Eat Leftovers

Eating leftovers is a great way to make the most out of your groceries and save money. You can spend an hour or less cooking a big meal and eat it for leftovers.

This will save you time as well because you won’t have to cook every day. There are two ways you can do this. You can cook a meal such as salmon, rice, and vegetables for dinner and then have the leftovers for lunch the next day.

Or you could cook a protein and a carbohydrate and eat it in different ways throughout the week. For example, on Sunday you can cook 2 cups of rice and 2 protein options like chicken breast and salmon. One meal can be Teriyaki chicken with rice and vegetables, another could be roasted pesto salmon with rice and salad.

Another option is to cook a packet of minced meat at the beginning of the week. You can then use the mince to make so many different meals such as.

Taco bowl – In a bowl add some rice, minced meat, salad, cheese, salsa, and avocado.
Stuffed peppers – Stuff a bell pepper with some rice, and minced meat and top it with some cheese and roast it in the oven for 30 minutes.
Shepherd’s pie – Boil some potatoes and mash them up. Add the mashed potato and minced meat to a baking dish, top with cheese, and cook in the oven.

The idea is that you can mix and match as you have the base of your meals prepared already. So all you have to do is decide which option you want and put it together.

For example, for the Teriyaki chicken meals you would just need to make the sauce and add the rice and vegetables.

I prefer this option to prepping all of my meals in advance because it gives me a little more flexibility. Also, your food will stay fresher this way. Cooked rice can stay fresh in the fridge for about 5 days. Eating this way will also save you money as you will be prepared. When you are not prepared you tend to resort to ordering food which is not cheap and will add up over time.

Choose which option works best for you, but the goal is to be organised so you are not in a position where dinner time comes and you don’t know what to eat or feel too tired to cook.

11. Freeze Your Meat

Another good way to make the most of your groceries is to freeze your meat. This can be fresh meat or meat you have cooked in a batch.

It is recommended to not leave your meat in the fridge for longer than 3 days.

What you can do is leave the meat you are going to consume within the next two days in the fridge. The rest you can clean, season, and store in the freezer. This way when you defrost it, it is ready to be cooked.

You can also freeze any meat you have cooked in large portions. For example, if you cooked a packet of mince and only want to make taco bowls twice, you can freeze the rest until you fancy eating it again. Using these tips will make your food last longer, save you money, and reduce how often you have to cook.

12. Eat Out Less

Reducing how often you eat out will save you a lot of money, but if it is something that you enjoy doing you don’t have to cut it out completely.

You can just reduce the frequency and do it within a budget. I love to eat out, I enjoy the experience of going out and eating good food so I include an amount for it within my budget.

If you are trying to save money for an important goal like paying off debt then you should consider cutting it out of your budget as it isn’t a necessity. But if you can afford to, you can include a small allowance for it in your budget.

I recommend this because you don’t want to feel like you can no longer do the things you enjoy when you are on a budget. This can make you feel miserable and less motivated to stick to your plan.

Be realistic about what you can afford and what is best for you and your financial situation.

13. Shop At Cheaper Supermarkets

Over the last few years, we have had many more options for cheaper grocery stores to shop at. This is great as it allows people with different budgets to shop in the best way for them.

Here in the UK, we have cheaper stores like Aldi and Lidl, then mid-price stores like Morrisons, Sainsbury’s, and Tesco.

The quality of the food can vary at these stores, but you can find ways to make it work for you.

For example, you could do all of your grocery shopping at Aldi as it is the cheapest store. Or you could buy the bulk of your groceries at Aldi and buy your fresh fruits and vegetables at Sainsbury’s.

I mention this because some people may not want to compromise on the quality of certain fresh foods like fruits and vegetables for example, so buying their fruits and vegetables at a mid-priced supermarket will work better for them. Shopping this way will also give you the best of both worlds lol

14. Use What You Have

A good rule of thumb when budgeting groceries is to use what you have before you go shopping again. This will help you to save money and reduce waste.

As you will be shopping based on the menu you created, when you get to the end of the week you should have used up your groceries. Your staple items such as spices, condiments, and the items you have bought in bulk will last longer, but your fresh items like meats, fruits, vegetables, etc will need to be replaced more often.

A good way to keep on top of this is to update your grocery list throughout the week. For example, items like milk, cheese, eggs, etc can be used in many different dishes and will finish faster. So if you have used the last bit of cheese when you made your taco bowl, you should add it to your grocery list straight away.

This way you won’t forget anything and when you get to the end of the week your grocery list will only have the items you need to buy for that week.

Frequently Asked Questions

What Is a Realistic Budget For Groceries?

A realistic budget for groceries is what works best for you and your needs.

The average amount people spend on groceries each week is $40 – $50 per person, this works out to be $160 – $200 each month.

You can use these numbers as a guide to start with, if it doesn’t work you can adjust it as necessary.

How Do I Budget Groceries For a Week?

A good way to budget groceries for a week is to create a menu based on the foods you enjoy and eat regularly. I recommend organising this by meals and having 2 – 3 options for each meal. You can see more details in this post.

Once you have this menu you can create your grocery list, this way you will only be buying the foods that you need. You will also be organised and have meals to see you through to the end of the week. You can then buy these groceries at the cheapest grocery store using your loyalty card. This way you will get access to cheaper prices and earn points while you shop.

Final Thoughts

Having a budget for groceries is a great tool to help you cut back, save money, and become a conscious spender.

Buying groceries while on a budget doesn’t mean you need to eat boring bland meals. You can shop in smart ways and still eat delicious filling meals.

It can be challenging in the beginning, but if you stick with it, it will become a habit.

Have you found these tips helpful? Which one of these tips will you implement the next time you go grocery shopping?