Money Monday Tip #1

I’m a frequent reader of an anonymous 30 something blogger, who blogs about her finances and in one of her posts she said she spends 800$ a month on groceries, which another reader questioned. I thought that was way too much for a single person living in New York City, I live in New Jersey so we get robbed too. I can’t criticize her because her net worth is over $300,000 so she’s doing something right, in fact, I bow to her. However, what baffles me is that someone that detailed and good with their finances spends so much money on groceries.

I also keep a finance blog about my debt free journey and will dedicate every Monday to a budgeting or finance post right here, on Thinking Out Loud! You may want to subscribe via email, so that you are sure not to miss any of my wonderful ideas. You Dave Ramsey fans may recognize option 1. He talks about this method on his show.

How to keep the grocery budget under control?

Option 1

Cash. Put aside a definite amount of cash that you need for groceries in an envelope for the month. Only spend money for groceries with the money that’s in the envelope. I’ve been doing this money stuffing envelope thing before I knew it was being done. Once that money is gone, you are done with your grocery shopping for the month. No ifs, ands or bucks about it!

Option 2

Gift Card. My local supermarket offers gift cards in increments of $25, so if you only have $200 a month to spend on groceries, then purchase a gift card for yourself worth $200 (that you pay for with cash) and let that be your grocery allowance for the month. Once that money is gone, you are done with your grocery shopping for the month. No ifs, ands or bucks about it!

Doing one of these two things can limit frequent trips to the grocery store, stop overspending and buying things you really don’t need. This tip only works for those who really want to control their spending, no whining.

Money Monday Tip #2