On Tuesday, February 28th, Paula Christine will host a webinar on a topic that's become increasingly important in recent months - grocery budgets. It will be offered twice, at 11am and 8pm Eastern, and you can link to it here: https://learn.paulachristine.com/budgeting-for-groceries
The first step is figuring out what your food costs look like. Paula found out she's spending much more than she thought, and she wouldn't be surprised if it's the same for you.
Once you figure out what you're spending, you have to create a budget, and have a plan for what happens if you go over that budget. Does that money come out of next week's budget? Does it come out of this week's budget somewhere? Which parts of your budget are static, and which parts are flexible? Paula and Producer Jon walk through some examples.
Another way to save on your food budget is to cut back on going out to eat and on getting takeout. These costs have skyrocketed with inflation, to say nothing about all the extra fees for services like DoorDash, GrubHub, Postmates, and more!
Remember how grandma used to clip coupons? Well, you don't need scissors anymore. Just look online. Often, grocery stores will have sales, and you can find the best prices on everything from produce to pop. And you can even put your grocery together online for pickup. Not only will this allow you to make sure you're within your budget, it will also prevent you from walking into the store and making those impulse buys!
What about buying in bulk? Paula and Jon talk about the benefits of big box stores like Costco. You can even buy meat to freeze. And speaking of freezers, how many meals are in yours right now? Knowing this can save money and cut down on food waste.
Meal delivery services - Jon and his wife have tried one. He and Paula explore the pros and cons and when one might be a good decision for you.
This online course and webinar will be really useful in creating a grocery budget. Paula's got 20 tips. Some may work for you, and some may not. But we're sure you'll get something valuable. Again, you can find more information here: https://learn.paulachristine.com/budgeting-for-groceries
Additionally, you can reach out to Paula on her website, PaulaChristine.com, or via email at Paula@PaulaChristine.com.
Jon 00:00
Welcome to Beyond the Paycheck. I am Jon Gay, Paula's producer. And Paula Christine joins me today, as always. It's good to be with you, Paula.
Paula 00:06
Hi, Jon. It's great to be with you, too.
Jon 00:08
So we're talking about an upcoming webinar you have coming up and this is such a timely topic. It's going to be offered twice on February 28th at both 11am and 8pm. We'll put all the information in the show notes. The cost of groceries has really skyrocketed in the last year or so we've all heard about inflation. We've all heard a lot about eggs lately, and so many other things. In previous episodes of the podcast, Paula, we've talked about budgets and how important budgets are. So with this webinar, we're really going to drill down on a grocery budget, right?
Paula 00:37
Yeah, we're going to talk about what your food costs looks like. Because I know personally, I had to sit down and do this project. Not only for the workshop but then, I did it for myself. And I found out I was spending about $250 more than what was in my current budget for not only groceries but eating out and take out. So I had to really cut back on a lot of different things and figure out well, what can I do instead of giving up eating out? I just eat out less.
Jon 01:04
I think that's really interesting because when you think about keeping yourself accountable to a budget every month, it's very easy to track the cable bill, your cell phone bill, your rent, your mortgage, and those static bills. But that going out money, whether it's going out to eat with your friends, whether it's grabbing takeout after a busy day, or whether it's actually grocery shopping, a lot of times that total is a lot higher than it has been in the last couple years. I feel like that's a lot harder to track.
Paula 01:29
It really isn't. It's just like anything. When you come home from the grocery store depending on how you paid for it, just write it down somewhere. So if you have, let's say $125 a week for groceries, just plain old groceries not talking, dining out or takeout. You go to the grocery store, you spend $125. Take your calculator with you, take cash with you, whatever you need to do to spend that $125. But if you spend more than that, that week, for some reason, you just need to deduct it from the week behind. But it's really just about tracking. Write it down so that you know where you're at.
Jon 02:04
I liked that idea of, if I spent $140 instead of the $125 today, $15 to spend last week. So you're talking about keeping the grocery budget as its own separate line item. Do you advise against Bob and Peter to pay Paul essentially, where you say, "Oh, you know what? I went $15 over this week. So let me take $15 out of this other part of my budget."
Paula 02:23
I don't know. That's a tough question. So let's just say that for an example, you had $125 for groceries and maybe $50 for dining out and takeout for a week. So if you spent $140. So you spent $15 more, I only have $35 to go out. So you have to think about that when you're going to go for the restaurant for that week. Where can you go to that you can spend $35? Good luck on that one. I'm getting you to Coney Island, and don't have any alcohol, that's for sure.
Jon 02:54
Exactly.
Paula 02:55
But that's really it, so you have to think about it. This is all the money I have for this. So how am I going to do that? So personally, groceries, dining out and takeout, I look at all of it as one. So if I have $200 that week for all of that, I make sure I get my groceries first and then whatever is left over that I can spend on takeout and dining out. But I really have decided to cut my dining out back a lot. It is getting very expensive to eat out.
Jon 03:25
It is and that sneaks up on you. I think the real takeaway here is no matter which way you approach this, it's being accountable. It's knowing that you overspent your groceries say, $15, $20, and $25. And keeping yourself accountable to make up that money somewhere else whether like you said the following week, or from a greater variable walking around money budget, but you have to keep track of that stuff. Because I think it's very easy, especially with the cost of eggs and so many other groceries going up so quickly. I think it's very easy to just see no evil here. Yeah, it's an extra 20 bucks a week, but it's fine. Keeping yourself accountable and tracking that is not only a good habit to build financial stability going forward, but if you don't track that, that can really come back to bite you.
Paula 04:08
Well think about it, spending an extra $20 a week. Extra $20 a week is $80 a month, $1,040 a year.
Jon 04:15
You did the math quick, I'm impressed.
Paula 04:17
I'm a finance person.
Jon 04:19
This is why you do what you do.
Paula 04:20
You think about that, but it's not usually $20 every week. Let's go back to just eating out again. By the time you go and depending on what type of restaurants you go to, if you have a cocktail or two, you're at least looking at between $10 and $20 for two drinks, if not more.
Jon 04:38
$10 or $20 per one drink, sometimes you get a nice mixed drink, for sure.
Paula 04:43
Yeah, and then just even get a hamburger and fries. So if you notice the cost of a hamburger and fries is like 18 bucks for a hamburger and fries. So think about that. If you made that hamburger and fries for four of your friends, it could probably cost you $18.
Jon 04:43
Right. So we're talking about this webinar or that you're offering on February reach 28th. Walk me through it. So obviously, we've talked about the importance of a grocery budget, what else are we getting into in the webinar.
Paula 05:06
So what we're going to start with is trying to determine, first of all, how much you're currently spending on your groceries. You're going to take a look back at the last 3 or 6 months of your grocery expenses. A lot of us can do that, because we pay with a debit or a credit card.
Jon 05:19
It's all right there.
Paula 05:20
And then you have to look. So hopefully you're living on a budget, but if you're not, it'll give you a good idea of what you're spending. Then we're going to take a look at how we can cut that. So in my circumstance, I was eating out once a week then I was doing takeout once a week, and then I was cooking at home. Sometimes I would just eat popcorn for dinner. But I had to think about where I was going to cut that money. So I stopped eating out, I go every other week now. And on the off weeks, I do takeout. So I'm still not having to cook one day a week. But I'm still getting that enjoyment. I'm just cutting a huge amount back on my expenses. Then we're going to talk about tracking. And then I have 20 different tips on how you can stay on track. Some of the things you can do like, take a calculator with you to the grocery store, and online shopping. That's what I do, is I just go online and shop with Kroger, then I go and pick it up. So it's adding it up for me. I know exactly why the spending stops the impulse shopping. I don't buy the things that I really don't need.
Jon 06:19
No, I love that one in particular. We do the same thing with Meijer and with Target. Some stuff at one store and some stuffs at the other store. And you think about the image of somebody walking around the grocery store with a calculator that can be tedious and challenging. But if you're doing your shopping online, you're doing curbside pickup, it's all right there in front of you. The calculator is even on your computer, just do it that way.
Paula 06:39
Yeah. And just like you just said, you get some things at Target, you get some things at Meijer and that's another good option. So you can see what's on sale at Meijer that you need, and then go to Target. Then if you want it even go to Kroger or some of the other markets and do all your shopping, stay within your budget and possibly even save more money. Because you know how some people or some stores run a sale. One week, we'll just use pop or soda. Meijer might have it on sale this week. Next week, it might be Kroger. So that happens a lot and you just want to look around and what's on sale at your store.
Jon 07:12
One of the things that we do is every month to six weeks, I'll go on a Costco run. And I'll buy in bulk stuff like --
Paula 07:20
Toilet paper.
Jon 07:21
Yeah, toilet paper, for sure. Paper towels. I drink a lot of coffee, I buy my coffee at Costco and it's cheaper to buy it in bulk a lot of times but not always. Because my wife will say, "I'll make a list for Costco before I go." And she'll say, "No, don't buy whatever it might be, say Tide Pods or whatever. Don't buy that specific thing at Costco. It's actually cheaper at Kroger or Meijer or Target." It's a little bit of extra time to do the research. But again, it's right from the comfort of your phone or your computer. And you'll end up saving money. That dollar here, dollar there really adds up.
Paula 07:51
I remember my grandma when she was still alive cutting out her coupons from all the different stores with the sales papers. And she probably go to two or three stores a week just to get everything she needed.
Jon 08:02
Way easier to do in 2023. That's for sure. No scissors needed. Well, what else is on your list Paula?
Paula 08:07
Well, we're just talking about it as planning. If you know what you're going to need for the week, then you can do that. If you don't have any idea what you need, plan your meals. So if you say you're going to have chicken and rice and then steak and potato, you know what you're going to the store for, you know what you're going to buy, and it's a lot easier. You don't deviate from that list. And then you can comparison shop. But let's go back to Costco for a minute. I just love this. I went and bought garbage bags.
Jon 08:33
Yes, we do too. One of the things I buy there.
Paula 08:35
200 garbage bags for like, $17.99. I could be wrong on the price. Do you know how long it's going to take me to go through garbage bags? I don't have to buy garbage bags for probably another almost two years.
Jon 08:50
And if you're ever not sure, look at the per unit price. Whether it's per pound, per ounce, per trash bag, whatever it is, and compare it that way.
Paula 08:50
I know I did that with the pods for the laundry. I think it's the Kirkland brand that I don't know. But it was 152 of those pods. If I wash my clothes, let's say three, I use three pods a week with that. Do the math. That's a whole year worth of pods.
Jon 09:17
And especially those non-perishable things. You can't buy three tubs of salad at Costco. It's going to go bad before you're able to eat it all.
Paula 09:24
Yeah, I don't buy my vegetables there. But I will buy bulk meat.
Jon 09:24
Freeze it.
Paula 09:25
So here's another tip. Go through your freezer. I don't know how much you have in your freezer, but I know I have a good probably 20 days’ worth of food in there that I probably should eat before I go buy something else. So let's say you're going to plan out your meal and you are going to have chicken and rice for dinner today. Go and see if you have chicken in the freezer before you go out and buy new chicken. I'm really bad at that. I'll go and buy what I think I'm going to eat for the week. And then I'll look in the freezer and go, "Oh look at all that chicken in there."
Jon 09:57
That's where my wife keeps me honest because we'll make a grocery list on Saturday morning, or whatever it is, and we'll be sitting on the couch and be like, "Go over to the fridge and see if we have this. Go over and check the pantry and see if we have enough too." Like, whatever it is, and I'm like, I don't want to get up. Then, "If you don't get up you're just going to buy it and assume we don't have it."
Paula 10:14
She is so mean to you by making you help her. Oh my god, she is so mean.
Jon 10:19
But you're the brains of the operation, honey. You figure it out!
Paula 10:22
Oh, wow. A marriage is a compromise and teamwork.
Jon 10:27
Thank you. Do you charge by the hour for the counseling? Or do you --
Paula 10:31
I do.
Jon 10:32
Yeah, you do. So what else is on your list, Paula?
Paula 10:36
So what else do we talk about? Learn to love your leftovers. I'm not a big leftover person, but I'm trying to learn to love them.
Jon 10:44
That's one thing where if you find yourself really busy during the week, you might cook a big pot of food on Sunday. You don't have to eat it Sunday, Monday, Tuesday, Wednesday, and maybe at some other days. Maybe eat it again on Tuesday, Thursday, when you've got a couple of meals for the week you've saved there.
Paula 10:56
I know. But that sounds all nice. But for me, I just don't know. I'm working on it.
Jon 11:01
Well, and that's what's great about your list, Paula, because you've got 20 things on there. And there may be some things that are non-starters, for some people taking this webinar where they might say, "You know what, that's a good idea in theory, but I know myself, I'm not going to do that." Well, there's other strategies on there, too.
Paula 11:15
So let's talk about something we talked about before we jumped down here. And that was to you and your home delivery service that you're using.
Jon 11:23
So my wife and I lately in the last couple of months, we've just been working a lot of long hours, work has been really busy for both of us. And we haven't had the time to make dinner and it got to the point where it's like, throw a frozen pizza in, and throw a frozen chicken nuggets in the toaster while we're finishing up work for the day. And we realized, well, (a) It's not healthy. But (b) if we didn't do that, we're running out to get takeout or worse and using one of those Door Dash types services with all the fees. And boy does that add up quickly!
Paula 11:52
Oh, I know it's very expensive.
Jon 11:54
So, in order to have reasonably healthy dinners and not frozen pizzas every night. And then also, to save a little bit of money from takeout and going out to eat, we got one of those meal delivery services where it comes once a week, and it's 10 or 12 meals. And all you got to do is you pop in the microwave for two and a half minutes and they're not bad. You can get the weeks’ worth in pick out, chicken and pork and vegetarian, beef, whatever you want for variety and then work our way through them. "Okay, it's dinnertime, we're done working. Dinner's ready in 5-10 minutes." It's perfect. So we really liked that a lot. But this is what we were talking about offline before I started recording, Paula is, it's got to fit within your budget, it's got to be saving you money,
Paula 12:34
Not necessarily saving. It just has to fit. So if we go back to what's the service cost?
Jon 12:42
100 something dollars a week, I think.
Paula 12:45
So let's just go with 100. So it costs you 100. And if your grocery bill is 100 then that's not going to work, because you still need eggs and all the other things. So that won't work. But if your grocery bill and you're eating out bill or expense for the week are 200, I get my grocery shopping done first, then necessities, like the milk and the eggs or whatever. And if I've got $100 extra knowing they are going out, I don't see why you wouldn't. I went to look at it. If it's prepared for you, that is just awesome. To save the time of cooking, especially for a single person who hates to cook, like eat it. Sometimes I eat popcorn. So it's just if I don't have to do it that would be awesome. But you'd have to make sure that it fits. You don't have to increase your budget to make it fair. You want it to work within your budget. So what are you willing to give up to have that service? And does that make sense for you?
Jon 13:42
Yeah. And for us we gave up going out to eat and take out a little bit because we were able to work it into our budget that way where we added in one place and we subtracted in another place.
Paula 13:50
But if you think about it, you really are, it is like a takeout. It just gets delivered once a week. Anything that you don't have to cook to me is a takeout or dining out.
Jon 14:03
As long as somebody else is doing the cooking, right?
Paula 14:05
Yeah, as long as somebody else is doing the cooking, and I don't have to. It makes sense. But you just have to make making sure that it fits within your budget and that you're going to eat it.
Jon 14:13
Yeah, you don't want to be wasting food like that.
Paula 14:16
That's another thing, you have to eat what you buy. I can't tell you how much food I wasted in the past. It's embarrassing. But I think that I'm going to eat salads all week. And then by the time I get to the lettuce because I've been so busy, it's rotted. You got to make sure that you are going to eat what you purchase.
Jon 14:35
Look, there are a lot of different strategies and you're going to run through them in the webinar here coming up on the 28th. Like I said, some are going to work for others and there's 20 of them. So you're going to figure out which ones work for you. But with the cost of groceries really having gone up in the last year or so especially with inflation. This is going to be a very valuable course for a lot of people. We talk about budgeting and one of the most important things to budget is going to be your food. So give us the details one more time on the webinar, Paula.
Paula 14:59
It is February 28th, there as an 11 o’clock and an 8pm webinar, Eastern Time.
Jon 15:06
Great, we will link to it in the show notes, you can sign up there. I look forward to it, Paula.
Paula 15:10
Thanks Jon.