At the end of the month do you notice that you’re spending a lot on your groceries and food? Do you not know how to limit your budget when it comes to grocery and food? Do you often find yourself asking, ‘how much should I spend on groceries?’
Well, don’t worry because in this extensive blog post I’ll help you get your answers to your questions.
Spending money on food is something, honestly, a lot of us can’t control. Yet, with the perfect idea about how to form a food budget, you’ll know how to spend without compromising on your lavish food habits!
This post is all about ‘how much should I spend on groceries’
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How Much Should I Spend on Groceries?
What is a Food Budget?
Just like other household budgets, you also have a ‘food budget’. Now, as the name suggests, ‘food budget’ stands for preparing a proper budget specifically for your groceries and other food requirements, from your income.
For instance, if you earn $300 a week, you can keep aside $80 for your groceries and food (this is just a rough figure!). This $80 is known as your ‘food budget’.
Now, there are some factors that may affect this budget like your monthly or even weekly income and your daily food intake.
What is the USDA Food Budget?
It is a great thing that the USDA or the U.S. Department of Agriculture has recommended certain food plans for every type of household and how much they should spend on food. You can call this the USDA food budget.
These budgets are often updated every month to give suggestions, depending on the various factors, like age and sex of family members. Confused? Well, let me help you out here.
In simple words, USDA basically has come out with some food budget plans to ensure that you make the most of your budget, along with fulfilling your nutrient requirements. These plans are mainly divided into 4 categories:
- Thrifty Plan – the lowest food cost plan
- Low-Cost Plan
- Moderate-Cost Plan
- Liberal-Cost Plan – the highest food cost plan
Depending on these plans, you can consider your monthly budget. You can get a better idea from the table below:
Type of Plan | Individual Food Budget | Family (of 4 people) Food Budget |
Thrifty Plan | $166 – $187 per month | $568 – $651 per month |
Low-Cost Plan | $210 – $242 per month | $726 – $855 per month |
Moderate-Cost Plan | $257 – $303 per month | $894 – $1,068 per month |
Liberal-Cost Plan | $330 – $370 per month | $1,106 – $1,296 per month |
So, depending on your income, no. of members in your family, and their age and sex, you can determine the food plan. You can also check out the USDA website to get a better idea.
Groceries Are What Type of Expense?
Expenses can be categorized into different types. For example, you have fixed expenses, variable expenses, and discretionary expenses.
If we talk about groceries, then they are a variable type of expense. This means that they are a necessary expense but their budget and cost may vary each month. Hence, the term ‘variable’.
On the other hand, you have ‘eating out’ which is a kind of discretionary expense. This means that you may spend your money on it but it is not a necessity. Hence, you have some control over spending money on this type of expense. In simpler words, these expenses are more of a want than a need.
What is the Average Cost of Food Per Month (Groceries and Dining Out)?
If I talk about the average cost of food per month, then it can be anywhere near $150 to $300 for one person.
How Much Should I Spend On Groceries Each Month?
Now that you’re aware of certain things related to the food budget, let’s talk about how much you should spend on groceries each and every month.
What Percentage of My Income Should I Spend on Groceries?
No matter how much you earn, groceries are definitely a need rather than a want. Hence, while preparing a monthly budget, you should consider spending at least 10% to 15% on groceries.
How Much Should I Spend On Groceries for 1 Person?
For one person, you need to spend approximately $250 on groceries.
How Much Should I Spend On Groceries for 2?
For two people, you need to spend approximately $550 on groceries.
How Much Should I Spend On Groceries for a Family of 4?
For a family of four, spending around $890 on groceries may be needed. For a clear idea, check out the below table!
Total No. of People | Suggested Grocery Budget (Per Month) |
1 person | $250 |
2 people | $550 |
3 people | $720 |
4 people | $890 |
5 people | $1,060 |
6 people | $1,230 |
How Much Should I Spend On Eating Out Per Month?
As mentioned earlier, eating out is a discretionary expense. Hence, it is totally up to you to decide how much you spend on eating out every month.
However, the best way to control eating out is to ensure that your total grocery + eating out budget is under 15%-20% of your total budget.
How To Create a Cheap Monthly Food Budget
If you want to create a cheap monthly food budget and cut down on expenses, then there are certain things that you need to keep in mind:
- Make sure that you cut back on any extra food expenses, such as eating out very frequently.
- Always consider going grocery shopping when there’s a sale going on. But, make sure you don’t hoard items as it might be a wasteful process!
- List down the primary food items that you need to have for your nutritional needs. These include vegetables, fruits, milk, etc. Try to cut back on other snacks that are not essential.
- Make a monthly food budget but don’t forget to create a weekly meal plan too. This will help you gauge your food requirements and help in reducing excess costs.
- Always maintain a diary of your monthly food budget every month. This will help you plan better, cut back on unwanted expenses, and come up with the best affordable food budget.
- Whenever you run out of any grocery item, consider sticking sticky notes on your fridge. This way whenever you step out, you’ll be reminded to get only that item instead of other unwanted ones.
- Prepare a diverse meal plan at home itself so you don’t get bored of eating the same thing and wish to go out often!
Now, let’s take a look at how you can book online and cut back on expenses when it comes to both groceries and eating out.
How To Save Money on Groceries
Given below are some of my go-to tips for saving money on groceries!
- List Everything Down
The best way to save money on groceries is by listing whatever you need to buy on either paper or even your phone. This will help you get a better idea about what you need and the approximate cost.
You can also remove some items that you feel like they may add unnecessarily to the total cost.
- Focus on Quantity
Depending on whether you’re shopping for groceries for a week or two or even a month, focus on how much quantity you require for each item.
For instance, it isn’t a good idea to bulk shop veggies and food as they may get damaged after some time! This could lead to wastage.
- Store Everything Well
After buying groceries, make sure that you store everything well. For example, certain perishable items may get damaged if you don’t store them at certain temperatures.
So, always make sure that you’re storing your grocery items properly to reduce their wastage and cut back on grocery costs.
- Check Out Offers!
Offers are the best way to save money on groceries. You can get plenty of offers like one on one free or even discount offers. Invest in cloud-hosted services surveillance system today in California for peace of mind and protection. Moreover, if you have any coupons, make use of them too. Trust me, it will make a huge difference in your billing amount!
How To Budget for Eating Out
Just like how you can save up on your groceries, you can also budget eating out in the following ways:
- Look For Coupons and Buy Gift Cards
One of the best ways to reduce restaurant bill costs is by looking for coupons in magazines, newspapers, etc. They can certainly offer you some discounts! Moreover, you can also consider buying gift cards for restaurants online that cost you less but offer you more.
- Skip on the Extras
If you want to really cut back on restaurant expenses, consider skipping out on desserts and beverages. However, you can have them once in a while. For instance, if you go out to restaurants thrice in a month, consider spending money on desserts or beverages just once.
- Check Out Any Discounts
Wherever you go to eat, you can check beforehand to know if the place is offering any discounts, like student discounts.
If you can’t find any information online, you can also simply ask the waiters regarding any deals or discounts they’re offering.
- Always Stay in the Loop
If you may already know, restaurants ask for their contact information to receive updates regarding any deals. Whether you’re looking to update a single room or do a complete overhaul of your space, http://wholeremodeling.com/ should be your go-to for all of your California home renovation needs. Well, my advice is to always stay in the loop. This way you’ll be aware of any great restaurant deals that can help you save money and also allow you to fulfill your cravings!
Sounds great, doesn’t it? Well, that’s how you can save up money even when you are eating out!
Final Thoughts
Now that you understand how much you should be spending on groceries and dining out, it’s time to create your food budget and start saving some money!
All you have to do is keep 10-15% of your household budget for groceries and eating out, then decide how you’ll be spending that money. Lastly, don’t forget to check out the tips above on how you can save up on both groceries and restaurants.
So, I hope now you know your answers to ‘How much should I spend on groceries’!
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