The best way to build savings and retirement accounts while making sure that all bills are paid in a timely fashion is to establish a budget. Some expenses are fixed, but one area that can often be controlled is your food budget and grocery budget.
The first thing to do is define the terms, since they are not really the same. A food budget is set up for what you purchase in the way of actual food. Your grocery budget is the total amount you spend at the grocery store. A grocery budget includes many items that are not food products. This includes detergents, toilet tissue, and cleaning products.
Your budget must be realistic and attainable. The first step is to determine how much is needed. Begin by listing the items and their costs that you must buy every week but are not part of your food plan. This would be the place to list cleansers, paper products, over the counter drugs, and sodas.
Next, make a list of food items you buy periodically, such as cooking oil, margarine, flour, and sugar. Note their costs and how often you purchase them. If you buy them once a month, set aside one-fourth of their costs each week to pay for them when they are needed.
Now you can determine how much of your budget will actually go for food. Count how many meals you need to cover. Allow twice as much for dinners as for breakfasts and lunches. To illustrate, if your budget for food is $100 per week, allot $50 for dinners, $25 for breakfasts, and $25 for lunches. Assuming three meals a day for seven days, this would give you an average of $7.14 for each dinner, $3.57 for each breakfast, and $3.57 for each lunch. With this number established, make a meal plan that will stay within these parameters.
Try to shop for the week and avoid return trips whenever possible. Few people can go into a store for one item and only leave with the one item. Frequent trips to the store can quickly wreck a budget. Shopping for the week also allows you to buy in bulk. For example, a five pound pack of ground meat will cost less per pound than a two pound pack.
Maintaining a food budget and grocery budget takes planning and a little effort. But since it is one category that is subject to your control, it is not difficult to lower your costs. Watching your savings account grow is one possible reward that can make it very worthwhile.
The first thing to do is define the terms, since they are not really the same. A food budget is set up for what you purchase in the way of actual food. Your grocery budget is the total amount you spend at the grocery store. A grocery budget includes many items that are not food products. This includes detergents, toilet tissue, and cleaning products.
Your budget must be realistic and attainable. The first step is to determine how much is needed. Begin by listing the items and their costs that you must buy every week but are not part of your food plan. This would be the place to list cleansers, paper products, over the counter drugs, and sodas.
Next, make a list of food items you buy periodically, such as cooking oil, margarine, flour, and sugar. Note their costs and how often you purchase them. If you buy them once a month, set aside one-fourth of their costs each week to pay for them when they are needed.
Now you can determine how much of your budget will actually go for food. Count how many meals you need to cover. Allow twice as much for dinners as for breakfasts and lunches. To illustrate, if your budget for food is $100 per week, allot $50 for dinners, $25 for breakfasts, and $25 for lunches. Assuming three meals a day for seven days, this would give you an average of $7.14 for each dinner, $3.57 for each breakfast, and $3.57 for each lunch. With this number established, make a meal plan that will stay within these parameters.
Try to shop for the week and avoid return trips whenever possible. Few people can go into a store for one item and only leave with the one item. Frequent trips to the store can quickly wreck a budget. Shopping for the week also allows you to buy in bulk. For example, a five pound pack of ground meat will cost less per pound than a two pound pack.
Maintaining a food budget and grocery budget takes planning and a little effort. But since it is one category that is subject to your control, it is not difficult to lower your costs. Watching your savings account grow is one possible reward that can make it very worthwhile.
About the Author:
In this day and age, everyone should have a Food Budget. Having a Grocery Budget will make you more financial stable. With the correct mind and software at hand, it is simple to do. You'll be surprised at the money you save.
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