Food: The Black Hole in Your Budget

We all need to eat, but for many of us, the increasing cost of food is eating a big hole in our budgets! In this episode of the Money is Emotional podcast, I share easy tips to rein in spending on groceries and eating out.

Food prices have risen drastically since COVID

Before 2020, grocery prices were rising at a rate of 1.2% per year. Supermarket and restaurant prices are now 25% higher than in January 2020! There is a combination of factors: general inflation (20% overall in the US), supply chain issues, and drought and disease which have affected major food categories like beef and eggs.

Grocery prices are showing signs of leveling out, but they’re certainly not dropping back to pre-Covid levels. Restaurant prices, however, are still expected to climb another 5% this year. You’re not imagining things! Food costs a lot more now than it used to.

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Food delivery is the MOST expensive way to eat

If there’s an industry that Covid helped to skyrocket (besides hand sanitizer), it’s meal delivery services like DoorDash and Uber Eats. The problem? This habit didn’t disappear when quarantines were lifted. It can add 25 – 91% to your restaurant bill!

This NY Times article broke down the cost of getting two 6-inch turkey sandwiches from Subway, either directly from the restaurant or from 4 major food delivery apps. Directly from the restaurant: $13. Food delivery apps ranged from $16.50 to $25.25… BEFORE tip! Yikes!

Why is it so expensive? Potentially, there are 4 extra fees you wouldn't pay for if you dined in: markup of the food itself, delivery fee, service fee, and driver tip.

If you really want restaurant food, pick it up yourself to save big, especially if the restaurant is close by. Return food delivery to a treat status vs. having it be a regular habit.

Dining out can take a big bite out of your budget

Most of my clients suspect they are spending a lot of money on restaurants, but they never accurately guess the number. There’s usually an unpleasant surprise when we start using the personal finance app together! Look, I’m not going to ask you to give up dining out. I’m not a monster! However, I’d love for you to be more mindful of your restaurant purchases.

First of all, set a monthly spending limit for dining out and track it! (Or use cash.) Other easy ways to save: Drink water with your meal, take advantage of happy hour specials and kids eat free deals, split a meal with your spouse, and eat out for “linner.” (Find out what that means by tuning into the podcast episode.) The bottom line: Be intentional with your dining out dollars.

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Save some green on your groceries

These days, every grocery trip feels like a punch in the wallet. But a homecooked meal is 50-75% LESS expensive than a restaurant meal. How can you keep grocery bills under control?

Don’t shop when you’re hungry! If possible, grocery shop alone. Know which stores have the best prices on the food your family eats. Pick store brands over name brands. Most stores guarantee you will like the store brand or your money back. Did you know… Aldi brands are all made by other name-brand companies like General Mills. The same thing goes for Walmart, Trader Joe’s, and Costco. Costco’s coffee is roasted by Starbucks! Don’t waste your dollars to buy brand-name consumables! ?

Make the most of your groceries with meal planning

It’s estimated that Americans throw away about 30% of the food they buy. This means if you’re spending $1,000 a month on groceries, you could be scraping $300 a month right into the trash can! Because groceries aren’t cheap, we want to make the most of the food we buy. Meal planning is simply planning your meals before you head to the grocery store, so you’re purchasing exactly what you’ll need. It allows you to make the most of what’s already in your pantry and freezer. I have an entire system I teach my clients so they can use meal planning to save them time, money, and stress. Download my free e-book, Mindful Meal Planning, to start saving money this week!

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If you’re not paying attention, food can be a black hole that eats into your family’s budget. By dining out intentionally, and being a smart grocery shopper, you can immediately start saving money to put towards more important (and fun!) goals.

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