You can’t do much about reducing your fixed expenses, and there are certain limits to which you can cut down on your utility bills .
But in this first of a two-part series, let’s focus today on a category of variable expenses, where you can save a lot through better planning: groceries.
• Create a budget
Set yourself a maximum permissible limit beyond which you won’t allow yourself to spend on groceries each week/ month.
Base your budget on the amount you’ve spent in the past few months – but after reducing what you could qualify as extravagant purchases.
You could also employ the Envelope Budgeting Method : the fear that you will not be allowed to spend the money once your envelope is empty will deter you from spending on unnecessary items.
• Decide your weekly menu
Rather than cook what you buy, buy only according to what you plan to cook.
This means, you’ll have to create your weekly menu in advance. Your past experience will tell you which food products/ meat/ vegetables cost less and you can include them more often in your weekly diet. (I’m assuming you’ll always pay due regard to healthier options.)
When you visit the supermarket, buy only those items that are included in your grocery list.
• Carry your grocery list
Now that you know your weekly menu, meticulously list out all the ingredients you need to buy to cook those items.
Carry the list whenever you shop and DO NOT BUY anything that’s not on the list, unless it is a crucial ingredient that you’ve missed out. This prevents impulse buying.
Supermarkets and grocery stores are smart in placing ‘temptation foods’ in an enticing way. Ignore them if they’re not on your list.
• The ten-seconds test
Okay, so you’ve spotted something that wasn’t on your list and there’s a chance you may succumb to the temptation?
Take the ten-seconds test then. If you are in doubt, take a deep breath and ask yourself “Do I really need to buy this right now?” Give yourself at least ten seconds before you pick the product of the shelf.
If the item has not been in your grocery list in the first place and you are in doubt, more often your better conscience will help you take the right decision.
• Maintain a grocery price book
According to Amy Dacyczyn, author of ‘The Complete Tightwad Gazette,’ using a grocery price book saves loads of money while making your grocery purchases.
According to Dacyczyn, the grocery price book is “a small loose-leaf binder. Each page contains prices for one item, and the pages are in alphabetical order for quick reference. I include my code for the store name, the brand, the size of the item, the price, and the unit price.”
“I began by writing down prices on sale flyers and from my grocery slips. I made a few trips to compare prices of specific items,” she says.
This means you create a book based on the products/ items that you usually buy and note the price you paid for it. You can make quick comparisons between different stores and then buy the stuff at a store where it is most economical.
• Compare unit prices
Prices of products are often deceptive – things that may appear cheap may not really be so, if you compare the unit prices.
For instance, if you instinctively pick up Brand A for AED10 just because it’s cheaper than Brand B that costs AED12 – if the former offers you only 1kg versus 1.25kg for the latter, you are not really saving money.
So always make sure you consider the unit prices: the total price of the product divided by the quantity on offer will give you the price per unit.
• Buy local products
Products that are manufactured locally are often cheaper than branded ones. Unless the occasion demands, you could consider buying local brands (without compromising on the health benefits).
Of course, some of the local brands may not taste exactly as your favourite international brands, but a lot of them will surprise you by their price economy, freshness and taste.
After note: It is ironical that parents and schools who emphasise that kids be offered the best education as a means to earn a respectable living, often forget to teach them an important subject that guides such living: money management .
While the greedy pursuit of money is accepted as a vice across all societies, wouldn’t it be a great idea if the virtues of thrift and financial prudence were taught to youngsters in a way that is pure fun?
To this end, Visa and Arabian Business has teamed up to offer readers the FIFA World Cup-themed Financial Football game. It’s a free, fast-paced, educational video game that tests players’ knowledge of financial management skills as they advance down field and try to score goals. [ Click here to play the Financial Football game ]
May the best saver win!
LET ME KNOW : Did you find these tips useful? How have they helped alter your spending habits? Do write it in to share with your fellow readers.
Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or supplied with the content. For expert technical/ financial/ legal opinions consult a qualified professional.
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