How to Significantly Reduce the Cost of Your Grocery Bill

Next to your cable and electric bill, the grocery bill is the greatest household expense you will encounter. However, it is the easiest expense to lower if you are willing to change your basic shopping habits. The average monthly grocery bill for an individual can cost hundreds of dollars a month, but does not have too. Many people choose to save money the wrong way, by cutting portion sizes or the quality of the food that they are purchasing. Instead, save money by becoming an educated consumer - and it only takes a few minutes out of the day before you go to the grocery store, and by making smart, conscious decisions while you are at the store.

Bring a Calculator
If you are on a budget, it will allow you to keep track of what you are spending while you are in the store and will curb the desire to make impulse purchases. This is because you will see the money being taken out of your budget before you get to the register. Also, it will be easier to make price comparisons to see if you are actually saving money on items both regular portions and bulk. In order to determine if you are saving take the price of the item and divide by the number of ounces - and that determines the price of the item per pound.

For example, you need to purchase frozen vegetables. The brand name is a bag that costs $3 for 16 ounces, while the generic is $2.50 for 13 ounces. It may appear that you are saving money with the generic if you are looking at price alone. But if you do the math the brand name comes out to costing 18 cents a pound while the generic costs 19 cents per pound. In this case, buying the brand name will save you money and provide a larger quantity of food.

Buying in Bulk
At first glance buying items in bulk or wholesale appears to be an ideal way to save money, and can be a money saver in certain situations. However, this is true mostly for larger families. Individuals and small households who buy items in bulk usually end up loosing money. Before you buy an item in bulk, ask yourself one question: will I use what I buy before it expires or spoils? If you are able to freeze or preserve the item, the purchase may be worth it. However items that spoil quickly or have a limited shelf life (mayonnaise and dressing for example) may end up being tossed before they are used completely and will end up costing more.

Item Substitution
Switching from brand name to generic brands can save a significant amount of money. However, this will only save you money if you actually use the generic grocery products. Not all generic grocery items are created equal in taste, quality, or amount per portion. Purchasing a generic food item will only save you money if you are willing to eat it! If the generic grocery item is not palatable to you, buy the brand name only when it is on sale or when you have a coupon. Or you can try switching to a cheaper brand name to save a few cents - saving a few cents is better than not saving at all.

Also, even though generic items are cheaper than brand names check the portion size. Some portion sizes are significantly smaller with generics or cheaper brands. You will not save money if you have to increase your portion size to make a satisfactory meal.

Prepared Meals
The prepared meals in the frozen food cases are true budget busters. Buy meal items separately, and save them in reusable containers for regular meals or for work. (Brining a meal from home instead of purchasing fast food or from the café is another easy way to save money.) For example, a prepared breakfast meal of eggs and sausage can cost $2 or more per box. By buying eggs at 88 cents to $1 per dozen, and box of sausage for $3 you can create several meals for around $4 (with a larger portion size) instead of one meal costing $2.

Never Pay Full Price
With the increasing number of available rebates/coupons online and in-store from general online money saving sites to the manufacturer sites, there is no reason to pay full price for a grocery item. Unless you need the item immediately take the time to search for sales and discounts.

Coupons
Everyone knows you can find coupons in the paper, in particular the Sunday paper. But are you really saving money when you are buying a paper for $1.50 or $2.00 and getting coupons that total that amount or less? Instead chose a cheaper alternative and use the Internet to your advantage. There are great resources available - Smartsource.com, Coupons.com, and ShopatHome.com, are only a few sites where coupons can be downloaded for free. Also, choose to shop at locations that will double coupons which can turn saving a few cents into as much as a dollar.

You can even use your cell phone to get coupons too if you have an internet connection! Cellfire.com allows you to download coupons to your phone for instant use and access in the store - so you never have to worry about leaving your coupons at home again.

Plan Ahead
Make a grocery list for each store, and stick to the list. Most excess spending comes from impulse buys either while browsing through isles or at the checkout. Stores are designed to appeal to your senses and "remind" you to purchase items you "forgot." For example how many times have you purchased an individual pack of gum or candy when you could have gotten a whole pack or bag for a few cents to a dollar more?

Also, always grab a quick bite to eat before you shop. Those who shop hungry tend to buy more, are more likely to give into impulse buys, and will choose food items based on their cravings. (Think back to all the grocery shopping trips you have made when you ask yourself - why did I buy that?)

Plan a Shopping Route
Shopping at multiple stores is too your advantage, even though it may be more convenient to purchase all your items at one store. When you are preparing your grocery trip make a grocery list divided into items by location. This way your route is planned (saving time and gas money), and you save money by choosing products at the cheapest price.