YNAB You Need A Budget

[maryea]

I've changed the way I shop a bit and this month we have spent less than $200!

[Patzer]

My wife and I recently split up, but before we did, we were spending $2600/month for a family of 4. That's about $650/person/month.

Sounds like you had some good reasons to split up. $2600 per month is a complete budget for some people.

Patzer

[YYC27]

My wife and I recently split up, but before we did, we were spending $2600/month for a family of 4. That's about $650/person/month.

Sounds like you had some good reasons to split up. $2600 per month is a complete budget for some people.

Patzer

I dunno. Maybe they were feeding Michael Phelps.

[WairereRose]

My wife and I recently split up, but before we did, we were spending $2600/month for a family of 4. That's about $650/person/month.

Sounds like you had some good reasons to split up. $2600 per month is a complete budget for some people.

Patzer

Yeah - it's not far off mine. (Especially if I convert to $US )

[maryb]

My budget is $60/wk for a family of 4. We do shop with a stockpiling method, so on occasion I bump up to $80 to cover a good deal, like where I want to stock up on meat. We also garden, so that keeps summer produce costs down, and we use the balance not spent on that to stock up on fall sale items like soups, oatmeal, pasta, baking items, etc.
I do use The Grocery Game, and the forums at A Full Cup or sometimes Slick Deals to get lists for the best sales. Contrary to popular belief, shopping by hitting sales, using coupons and stockpiling does not mean all you ever buy is junk food! I shop at a bakery outlet for organic bread, and I hit my stores dairy and meat markdown sections to save there, and I meal plan based on what is in my pantry, freezer or on sale that week. If you do that instead of saying hey I want steak and asparagus tonight (and then go buy both at full price) then you can trim your costs significantly. It is really just a change in mindset as to how you shop and how you plan what you are eating for the week.

[DaveCrom01]

Hi maryB

I really couldn't agree more with your post! I've posted an extensive message on this thread about the way I do things, professionally and in my own family kitchen, and it's very similar to your own method.... the real key is finding the synergy across several meals, and in avoiding the subconscious traps the supermarkets (as we Brits say!) set for you. I once went to see a major Canadian chain about setting up an Average Annual Buying Price contract for seasonal vegetables - Chef's love them, as they get to fix and budget a set price for the items with which they can then approach other competitors and find a comfortable price versus quality breakpoint. Ditto for meat, and fish - although fish is getting harder to do now, as so few major suppliers are prepared to gamble on the fishing quotas.

I asked the agent why they had 12 freezers in the store room full of meat that was destined for the "bargain bin" meat counter, you know the one - it's tucked away in a small corner of a freezer somewhere in the store and has about 20 to 30 packets of produce in there at any 1 point in time. I assumed that the reason it was all kept in the back, was because they only had limited space "out front" in which to put this marked down stock. After all, this isn't short dated meat - it's basically product that has been on the corner of a skid/pallet and has been damaged in the process of shipping. At worst, it's just got some air onto the frozen meat and caused some freezer burn.

The actual answer surprised me. The agent basically smiled and told me that by keeping the "out front" section small and hidden away, they were artificially trying to create the impression that it was somehow embarrassing to shop from it! By keeping it small and making you dig around, they create an illusion of desperation. After all, if they can avoid selling it within date, they get recompense from the initial supplier by virtue of the restrictive contracts they enforce.

So basically people, (and I'm sure the YNAB'ers are the best at this already) DIG AROUND!! If you really are worried about things like freezer burn (a 90% cosmetic problem, to be avoided for dinner parties but perfectly suitable for most family cooking), then buy up the stuff for recipe's which can take advantage of it - slow cookers, crock pots, soups, casseroles etc. By the time you've pan-seared it and added some flour, you'll never know nor spot the difference.

Just remember, the supermarkets want you to "buy into" the particular market segment they align for themselves.

Mary, I'm right with you and whole heartedly congratulate you on your target figure. $2 per head per day is an outstanding achievement.

Cheers,
Dave

[gatherer]

Our budget used to sit around $600 for a month (just 2 of us) it's now down to under $400 where I like it. We are being very careful to get the spending under control for groceries.

[MALMomma]

Just saw this...

Use the Grocery Game & have done so for 6 years this month. This month will be $400 for our groceries, which include food, diapers, health & beauty, cleaning, and paper. Add on a spending budget of $200 for eating out and October will be $600 for everything. This makes it $120 a person, as there are 5 of us with the youngest in diapers.

[Learning2Budget]

$60 a week on groceries for 3. No eatting out. Couldn't afford it this week. I made a soup, bean and rice and cabbage and groundmeat with rice. And a couple snacks. Plenty to eat the whole week. I just had to make the time to cook.

[Mrs_Smag]

I just got everything put into YNAB today. I knew that our eating spending was getting out of hand, but I had no idea how much! For just the two of us, we spent an average of $337 on groceries (toiletries included) and $344 on eating out during November and December. The sad part is that we've been eating awkward meals this week to clean out the cupboards and make it until we could go grocery shopping. For that kind of money, shouldn't we have things left over?

I'm hoping it's because we went out of town three weekends and also had holiday cooking to do. I'm looking forward to joining the January grocery challenge!

[rudeboyrg]

We are a family of 3. My wife, my 18 month old boy, and myself. I only buy generic food (which is the cheapest), and just basic food eg: Produce, fruits, veggies, some meat. Again all generic and we tighten our belt. Out monthly grocery expense?
At least 500 dollars a month. And that does NOT include toiletries, diapers, soap, etc. That is just groceries.
What the heck are all you people buying? Raeman Noodles? I don't know how everyone here can afford to eat so cheap.

[WairereRose]

We are a family of 3. My wife, my 18 month old boy, and myself. I only buy generic food (which is the cheapest), and just basic food eg: Produce, fruits, veggies, some meat. Again all generic and we tighten our belt. Out monthly grocery expense?
At least 500 dollars a month. And that does NOT include toiletries, diapers, soap, etc. That is just groceries.
What the heck are all you people buying? Raeman Noodles? I don't know how everyone here can afford to eat so cheap.

Bread and spreads
Meat - I try to keep it to less than $2 per person per meal. If I get it on special I can sometimes get the cost down to less than $1 per person per meal. We have small meat portions, and my son (who does most of the cooking) has been known to 'bulk up' the mince sometimes with a little oatmeal which really improves the flavour (I hate mince, so avoid it where possible).
Eggs - can be cooked a multitude of ways
Fruit/Veg - these we don't have so often, what we do get is frozen or canned
Pasta - again can be cooked a multitude of ways
My son eats noodles regularly for lunch, but not the cheapest brands, and he has 2-3 packets at a time (16yo)
Cheese - handy ingredient for many meals
Cereals for breakfast - we do tend to stick to the plainest types, cornflakes, rice bubbles.
Rice
Canned smoked fish - nice in a white sauce on toast with eggs and vegetables
Shaved ham
Milk powder to mix up for milk

Most common meals:
Spaghetti bolognaise (mince, spaghetti pasta)
Curried meat with rice (usually a cheap cut of meat, diced)
Fish Kedgeree (smoked fish, eggs, froz veg)
Toasted sandwiches (eggs, bread, baked beans, cheese)
Marinated meat with rice or potatoes and frozen veg
Macaroni cheese with shaved ham through it (Penne pasta usually, cheese, ham)
Sandwiches for me for work (bread, marmite, cheese)
Noodles for son for lunch
Breakfast - rice bubbles or cornflakes with milk

Occasionally we have sausages or pies.

[virago317]

We are a family of 3. My wife, my 18 month old boy, and myself. I only buy generic food (which is the cheapest), and just basic food eg: Produce, fruits, veggies, some meat. Again all generic and we tighten our belt. Out monthly grocery expense?
At least 500 dollars a month. And that does NOT include toiletries, diapers, soap, etc. That is just groceries.
What the heck are all you people buying? Raeman Noodles? I don't know how everyone here can afford to eat so cheap.

I'm not sure where you live, so you could just live in a high-cost area where food bills are higher overall. We live in a metro Midwest city where costs are relatively low, so that's one plus. My husband and I usually keep it down to around $275 or so per month for groceries (non-food household items are separate), and around $50 for eating out on a good month (we sometimes spend more, just as a luxury, but we could cut it out almost totally if we wanted/needed). My husband is the kitchen guru, and he generally makes a weekly meal plan based around what's on sale at the grocery stores this week (per weekly circulars; we generally don't do coupons). We try to do one weekly shopping trip and keep a list of what to buy; sticking to only what's on your list can help keep prices down, since a lot of those "impulse buys" (even if generic) are still relatively expensive. We eat a lot of (inexpensive) meat, frozen/fresh veggies, and rice/pasta/potatoes, with most of our meals made from scratch. If we had to care for a baby as well, I'm sure our costs would be higher.

[posturally]

For all you people who spend about $150 per person per month on groceries - do you shop for fresh organic foods, or do you just look for the cheapest stuff you can find so you stay within you budgeted amount? I am pretty particular about what I will buy, so I spend a lot of money at the health food store. I am just getting YNAB set up so don't have a monthly grocery amount to give you, but I can say that I shutter at the thought of finding out what that amount is!

Thanks,
Anne

[Patzer]

I am pretty particular about what I will buy, so I spend a lot of money at the health food store

Being particular about what you buy, whether it's organic groceries or specific name brands of clothing or the precise model of the car you want, pretty much guarantees that you will pay more than the people who are not that particular. In effect, being particular limits your ability to benefit from price competition between brands, between merchants, and between similar products.

I am just getting YNAB set up so don't have a monthly grocery amount to give you, but I can say that I shutter at the thought of finding out what that amount is!

There are two relevant budget questions for someone who is particular about buying organic foods. First, how much of a price premium will you pay for insisting on organic? Second, is this something that is a priority for you and can fit in your budget? The second question is really the key question, but it can't be answered until after you know the answer to the first question.

I think groceries are a popular topic to talk about when budgeting because this is a type of expense that can be changed on short notice. I can choose to buy brown rice and dry lentils instead of minute rice and canned beans. I can choose to buy the Walmart house brand of brown rice instead of the national brand. I can choose to make my own burritos instead of buying pre-made frozen burritos. I can choose to change what I eat in order to make groceries more economical. All this could change what I spend at the grocery store as soon as the next time I go grocery shopping.

In contrast, many other types of expenses can't be controlled in the short term. Getting rid of Cable TV takes at least a month, longer if you're on a term commitment. Changing cell phone plans to be cheaper can typically only be done at contract renewal. Using less gasoline (absent simply driving less) is tied to what kind of car you buy the next time you trade cars. A large percentage of my budget goes to expenses that I have little direct control over, absent a longer term decision to do without or swap something out for a cheaper alternative. But groceries . . . if I'm not efficient and effective in my grocery shopping, I could start changing that this week.

Patzer