Mar. 10, 2022 "Here’s what you can do about the ever-increasing prices at the grocery store and gas station": Today I found this article by Sandra Fry on the Financial Post:
It’s not surprising that many are wondering how they will be able to afford groceries, fuel and other basic housing needs going forward given that countless Canadians were struggling to make ends meet before necessities started to cost more.
The fix in situations where necessities are putting an increased strain on household finances is to go back to the drawing board and rebuild your budget. This starts with tracking where your money goes, because many Canadians have lost touch with what life actually costs. The convenience of electronic payments makes it easy to ignore buying, say, a $2 or $3 coffee each morning or the occasional lunch out. But to find out everything that is adding up to the big deficit in your budget, keep track of your spending by recording it in a spreadsheet or even a pocket notebook.
Once you know where your money is being spent, it’s time to make some changes.
Eating out, entertainment, travel, gifts and any other niceties are all areas that can be reduced to free up funds for the essentials.
If your costs for housing, food and transportation are increasing, then carefully review those expenses. Some are more fixed than others, but freeing up any extra funds will help to balance your budget.
Housing is often your largest monthly expense. Credit counsellors recommend you aim to keep all your housing costs to no more than about 35 per cent of your net (after-tax) income. That number includes the mortgage/rent payment, property taxes, condo fees, home insurance, heat and other utilities to run your home.
If you do the math and discover your housing costs are over this limit, consider how to manage this amount.
Downsizing or renting out a room could help, as can reducing other expenses.
Also talk to your mortgage lender about options to temporarily reduce your monthly payments.
Aim to keep transportation to no more than 15 to 20 per cent of your income. If your budget is tight, even this amount may be too high. If you’re a two-car household, look at options to park one vehicle to save on insurance, fuel and car payments.
If you pay to park, think about how to eliminate/reduce that expense.
Public transportation might be less convenient, but savings on commuting costs can have a huge impact on a struggling family’s budget.
Carpooling with a co-worker may be another option as well.
With gas prices at or near record levels, perhaps you could trade in your gas guzzler for something more economical. Filling your tank for $40 instead of $80 or $100 will go a long way to freeing up money for other essentials.
In helping my clients manage their money, we budget for average monthly grocery costs, which don’t include eating out and all the other non-food things you can buy at the grocery store.
On average, food should cost between $250 and $300 per person per month. Dietary restrictions and where you shop can drive those costs higher. However, if you find your grocery costs are exceeding that amount, it’s time to figure out why. Possible causes could be:
How often you shop: The more often you shop for groceries, the more likely you are to spend. If for convenience you shop at a smaller, local store — rather than a larger grocery chain — know your prices.
The larger stores are often able to provide lower-priced goods since they buy in bigger quantities.
Also, some stores will allow you to price match the sale prices of other retailers, provided you bring in the competitor’s flyer (on paper or via a smartphone app).
Shopping when there is still lots of food to eat at home: Rather than letting your tastebuds drive your budget, focus on shopping your cupboards and freezer before heading to the store.
Create a meal plan around what you already have and only buy what you need. That alone could mean one less trip a month for groceries.
Audit how much food you waste. Canadians may have thrown away close to $550-million worth of food at home in the past six months, according to a study by Agri-Food Analytics Lab at Dalhousie University.
If you find you are throwing out those well-intentioned fresh vegetables and fruit, stop buying them. Buy frozen instead. They are often cheaper and those without additives can be more nutritious than fresh or canned. (They are frozen at peak ripeness, not picked green to endure shipping.) They can also be ready to eat in less time than it takes to make the extra trip (more gas) to the store to pick them up.
Housing, food and transportation are the top three essential living expenses we have. Medical needs might be a fourth.
If after budgeting for these expenses you have run out of money, you have four choices:
look for further reductions,
find ways to increase your income,
supplement your budget
or do a combination of all three.
These trying times won’t last forever, but the skills you learn will last a lifetime.
Sandra Fry is a Winnipeg-based credit counsellor at Credit Counselling Society, a non-profit organization that has helped Canadians manage debt for more than 25 years.
Soaring food prices have shone a light on rising food insecurity, prompting social justice advocates to call for stronger income supports and changes to food production and access to ensure all Canadians can afford to eat.
Yet even those with more disposable income are starting to feel the pinch from rising food costs. While some can afford higher prices, others may be struggling and looking for ways to cut costs.
Here are some tips from experts on how to save money on groceries:
Make a list: "The No. 1 way to save money is to go shopping with a list," said Jennifer Ferguson, a registered dietitian based in Truro, N.S. "It keeps you focused and on budget," since it minimizes impulse purchases or unnecessarily buying something you already have at home.
Cook at home: Eating out, ordering takeout or buying prepared foods adds up quickly. Experts say the best way to save money is to cook at home. It isn't always easy: not everyone has the time, ability or space to prepare food.
"There's a systemic change that needs to happen around food access and availability," Ferguson said. "But I also see is a loss of food mentors and the skills to cook." She said greater income support and education around food preparation is needed.
Meal plan: Planning ahead can help save money and reduce food waste. "People think that saving money on food starts when they walk into the grocery store," Ferguson said.
"It starts in your own house." Before going to the supermarket, check what food is already in your cupboard and come up with a meal plan for the week, she said.
Eat before you shop: Don't go to the supermarket on an empty stomach. "Going into a grocery store hungry is never a good idea unless you have an iron willpower," Ferguson said. "When you're hungry, you will make impulse purchases."
Consider online shopping: If you have trouble sticking to a list or tend to be an impulse shopper, experts say placing your grocery order online might be a good option.
Check the unit price: Grocery store price labels often include a unit price for the product. Food experts say it helps shoppers easily compare and contrast prices, regardless of the product size or how it's packaged.
A cereal price label, for example, includes a unit price for each 100 grams. This helps customers quickly compare the cost difference between brands.
Choose fewer processed foods: Processed foods are convenient but usually cost more than unprocessed foods, experts say. For example, a can of beans is more expensive than a bag of dried beans and shredded cheese is pricier than a block of cheese.
Yet unprocessed foods require more time and know-how to prepare. "Dried beans may be cheaper but if they sit in your cupboard and you never use them, it's a waste of money," Ferguson said.
Increase plant-based protein: With the cost of meat on the rise, experts say one way to save money is to eat more plant-based protein like tofu, lentils and beans. "There are multiple benefits to increasing your plant protein — whether you mix it with animal protein or have it by itself," Ferguson said. "There's a cost savings but there's also a health benefit to decreasing saturated fat and increasing fibre in your diet."
Consider frozen or canned produce: With the cost of fresh fruits and vegetables on the rise, experts say shoppers should consider frozen or canned produce. Not only can it be more affordable, frozen and canned produce has a longer shelf life and thus helps prevent food waste.
Still, local produce can also sometimes be less expensive when in season and helps support local farmers.
Choose generic brands: Name brands tend to cost more, and many companies are currently limiting promotions and sales due to inflation. Experts suggest now is a good time to "trade down" and try a store brand. "Some people tend to be very brand loyal, like they'll only use Tide detergent," said Lisa Thompson with Coupons.com. "This is a good time to try something new."
Consider buying in bulk: Shopping at a wholesale or bulk-food store or buying larger-sized formats is one way to save money. But this usually comes with a higher upfront cost and requires more storage space. One idea is to team up with a friend, Thompson said. "I have a friend I shop with at Costco and if we both need avocados this week we'll split a bag," she said. "It's cheaper than buying them at the grocery store and also reduces food waste."
Flyers, coupons, sales and apps: Checking weekly flyers, using coupons and keeping an eye out for sales and discounts are all good ways to save money at the grocery store. Also, apps like Flashfood allow shoppers to browse discounted groceries at nearby stores.
Reduce food waste: One of the best ways to save money on groceries is to reduce waste. Experts suggest monitoring household food waste to see what regularly gets tossed out. "We get into the habit of buying the same stuff all the time," Thompson said. "Now is a good time to pay attention to what you throw out."
Tips to save on your grocery bill as inflation sends food prices higher - BNN Bloomberg
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