Simply Junior

Let’s face it, with the way things are today with gas and grocery prices going up (and just about everything else) most of us are doing what we can to save money on groceries. I know you’ve heard it all; coupons, shop the sales, using rebates…but I have a simple technique that I have found is the best way to save money on groceries for my family. So no matter how much money you make, or how much you spend, anyone can save money!

First of all, all those tried and true grocery saving ideas really can work. But honestly, I don’t have the time. I do cut out the occasional coupon, and wish I had the time to work all the couponing angles, but I don’t. My secret to saving money happened accidentally as I was trying to become more organized to be able to run my online business from home more efficiently.

I make a weekly menu. That’s it, that’s the secret. I know, like I said, seems more like organization. But the fact is, when you make a menu each week, then develop your grocery list from that menu, you can save up to 30% on your grocery bill every week. If your grocery bill averages $100 a week, that’s $33 bucks, folks. That adds up to more than $1700 dollars a year. That’s a lot of money to be throwing away. And the savings are higher if your grocery bill tends to be higher than $100 a week, like mine.

The reason this works is that it eliminates impulse and unnecessary buying. The menu and list keeps you on track so you know everything you need. How many times have you bought a couple heads of lettuce and some tomatoes, thinking it would be great to have a salad “sometime this week” only to find them later in the frig, $9 worth of trash? We’ve all done it, sometimes so many times its embarrassing to admit!

Better still; use the weekly sales flyers to create your menu from discounted items. For instance, if round steak in on sale this week, make sure a couple of meals on your menu use round steak. Apples on special? Buy a bag and make apple pie for this weeks dessert. Getting it?

It really does work to save you money on groceries, and the side benefit is that you avoid those last minute (and unhealthy) trips through the drive thru. Every morning you know what’s for dinner, so you can thaw your meat, or start your slow cooker without the guilt and expense unplanned meals can cause.

So try it. Get out a paper and make a menu for this week. (Or you can visit Women on the Net for free menu printables.) Create a shopping list from your menu. Feel free to interchange a meal here and there if you come across a good sale, but be sure to change it on your menu list. Now compare your grocery bill to the last few you’ve had. Pretty cool, eh? From a mom who has raised 5 kids and three stepkids, this is my secret for the best way to save money on groceries, and keep you on track at the same time!

With easy access to money through credit cards, many people find they spend more each month than they actually have or can afford. It’s easy to charge an expensive item on a credit card because money does not physically change hands. For example, one might charge a $200 item on their credit card without much thought, but probably think seriously about the purchase if required to pay for it with cash money. This leads to large credit card balances that can be difficult to pay off due to the monthly accrual of high percentage interest rates.

In recent years, bank debit cards have gained widespread use by people who want to avoid running up a large charge account balance with their credit card. However, debit cards can be as dangerous as credit cards because they are just as easy to use and people don’t feel the emotional pain of money actually leaving their wallets. Furthermore, debit cards can lead to an overdrawn bank account. An overdrawn account can incur large overdraft fees which place additional strain on the already depleted account. Paying with cash is psychologically more difficult to do than merely swiping a piece of plastic where you don’t actually see or handle the money.

If you can develop a habit of spending cash rather than using your credit or debit card, you will probably spend less, and reduce impulse buying.

One way to control spending and climb out of debt is to set up a budget. A budget will help you manage your personal finances more effectively. There are many inexpensive and free consumer budgeting solutions available, all the way from pencil and paper budget systems to sophisticated budgeting software. It need not be complicated, expensive or time-consuming. Any budgeting system is good as long as you use it consistently. However, doing “more of the same” of what you’re doing now will only result in continued financial angst.

One easy system to implement is the envelope budgeting system. As the name implies, it uses envelopes to budget your spending. You merely set up a system of envelopes for each spending category you have, and put money in the envelopes to pay for each category’s expenditures for the month. When the envelope is empty, you’re done spending for the month. No going to the ATM for more money, no charging on your credit card, no more spending — period.

By spending only what you have in the envelopes, you are forced to stop over-spending and charging up your credit cards. An envelope budgeting system will help you manage your finances more effectively and learn how to live within your means. But whether you use an envelope system or some other budgeting program, living on a budget can become a normal lifestyle as you pay off your debts, save more money, and build financial stability in your life.

One of the most valuable personal money management tips I can offer is to use a budget planner. Having a visual idea of your finances makes the process of keeping track not only easier but more accurate and of course also provides you with that important feeling of control. Opening an online savings account offers you a much higher interest rate than a branch account. Having no branch or ATM access also means you are more likely to keep your savings than dip into them on impulse as withdrawing from this type of account requires transferring the funds into your normal bank account and usually takes at least 24 hours. Don’t save at the expense of your social life, but don’t let your social life stop you from saving. Studies show that people who include an allowance in their budget for enjoyable activities are more likely to stick to their budget and therefore save more in the long term. When you resent your budget and feel restricted by it you will be more inclined to break it and ultimately loose track of the entire thing. Remember, life is all about balance. Review your budget on a regular basis. By establishing the habit of sitting in front of your budget planner and bills one night a week you will be developing a habit that ensures you are always on top of things. In time you will begin to notice ways in which you can improve your budget while freeing up more cash, or perhaps notice a few leaks that need to be plugged before they get out of control. When it comes to regular savings, change your mindset. To illustrate; when you receive a bill in the mail you know you can’t avoid paying it, there is no way around this, it is a social norm. Start thinking of your savings account as a bill that must be paid and even if that bill is only $5 a week; pay it before you do anything else. These days most people (in the first world at least) receive their pay cheque as a direct deposit into their bank account. Decide on an amount of money you can reasonably save out of each pay and ask your boss or payroll department to split your pay cheque with a set amount going straight to your savings and the rest going to your normal account. With that small amount out of sight it is also out of mind and you won’t miss it. Did you know that by shopping at convenience stores like the gas station and mini mart you could be paying between 25 – 40% more than you would at the grocery store? So, shop at the grocery store. Pay loans more frequently; by paying down debt on a weekly or fortnightly basis rather than monthly you will seriously reduce the interest on the loan in the long term. Get to know yourself and acknowledge your weaknesses, we all have them, for some it’s chocolate, for many it’s shoes, but whatever your weakness is, don’t put yourself in front of temptation. If you know you can’t walk past your favourite shoe shop without hearing angels sing at the site of a gorgeous pair in the window; then take a different route. Finally the last of my personal money management tips is this: learn to save money, emphasis here on the word ‘learn’. For most of us a savings habit does not come naturally. Studies show that in order for an action to become a habit it must be done over and over again, I think the standard here is 21 days. But we all know that good habits can be much harder to imprint on our brains than bad ones, so start off small. A great way to learn to save is to choose something you want that is small, say a digital camera for $300. Be specific about your goal by choosing the actual camera model you want then get a catalogue picture of it and stick to the fridge. Now we all know these days purchasing items on store finance is sadly more the norm than actually paying for it with cash, but don’t do it. Decide to prove to yourself that you can buy this item by saving your own money and remind yourself that you will be saving on finance fee’s as well as hefty interest. You know you need to save $50 a week for the next 6 weeks to get that thing which you desire, so whilst keeping your visual goal in mind set about saving that $50 and then reward yourself by paying cash for that camera in 6 weeks time. As you get into the habit of saving, believe me you will actually begin to enjoy the process of setting goals, visualising them, working towards them and then rewarding yourself at the end.