Start With a Budget

How many items in your budget are fixed? Think about your mortgage, car payments, insurance, cell phones, etc. These budget items are the same every month and have a set due date. But how about your grocery budget? It is one of the few areas of your budget that you can control the most.

So many of us go to the grocery store with no plan or budget in mind and then are surprised at the check out by how much we spent and how little we actually got for our money. So how do you set your grocery budget? If you can, take a look at your bank statement and add up everything you spent in the last 4-6 weeks. If you do not have access to your statements, then for the next month, save ALL of your receipts for grocery purchases. Be honest, if you stopped to get milk at the corner store, then that counts toward your food budget.

Now you know how much you are spending and you can begin to cut back slowly. Just like any habit, slow and steady wins the race. If it seems like you are spending too much, begin by subtracting 10 percent of your total budget and work within that amount for the next month. Continue to lower it if you like. Knowing the amount you can spend on something helps you set limits. You will be more likely to utilize what you have in your pantry and plan ahead if you have a set budget. And remember, this is a learning process, so if you go over your budget one month, try to reign it in the next month.