Goal: Review your food budget and discover clever ways to trim the fat. Update your budget to reflect this new spending plan.
Why it Matters: Reaching FI as quickly as possible will require more money to apply towards saving, investing, and paying off debt. One of the easiest ways to free up money is to optimize your budget, and food is no exception.
Completion Time: ~10-mins
19 Strategies to Reduce Your Food Expenses: After reading this list, take a look at your food spending and identify areas that you can improve.
Groceries
Use food apps to find heavily discounted produce. Apps like Flashfood and Food for All allow you to find discounted produce and restaurant food that would otherwise go to waste.
Use grocery store apps and rewards. Most major grocery store chains have their own app or weekly ads with plenty of coupons and discounts.
Buy store brands. They’re almost always cheaper, and there's a good chance you won't be able to tell the difference.
Grocery shop with a list. Fortunately, you know how much you have to spend on groceries, based on your WizeFi plan. Create a shopping list that fits within your budget before you go to the store.
Grow your own food. Build a garden to help cut back on costs. You can even sell extra produce or seeds to others.
Shop seasonally. Want your food to taste better and be cheaper? Then, shop based on which foods are in season.
Look for discounted sections at the store. Some grocery stores have a discounted section for foods that are about to reach their best by date. When shopping in this area, make sure the items are still within your budget.
Minimize your food waste. The average household wastes almost 33% of their food each year. As you plan for meals throughout the week, be aware of food that might go bad soon and try to incorporate them into your cooking.
Consider buying in bulk. Stores like Costco can be great resources for bulk staple goods, but be careful that you’re actually saving money on a per unit or per ounce basis.
Shop around for groceries. Different grocery stores tend to have different deals. If you’re looking to maximize your range of cheap groceries, look at multiple stores then create a list of the cheapest ingredients you need from each store.
Avoid pre-packaged foods and meals. Convenient foods often come at a cost. Whether it’s the nutritional value or the price tag, pre-packaged foods are usually less cost effective than assembling the meal yourself.
Reduce meat consumption. Meat is often one of the most expensive food items. Finding cheaper protein substitutes can make a huge impact on your monthly grocery bill.
Minimize single use ingredients. Have you ever bought a large amount of herbs for one dish and had to throw out the rest? When shopping for groceries, try to avoid/substitute ingredients that you know won’t be completely used.
Dining Out
Split an appetizer, drink water, skip dessert, or get it somewhere else. These are often the most marked up items at restaurants.
Minimize eating out. On average, food is 4x more expensive when eating out. It can be difficult to completely eliminate eating out, but try to set reasonable boundaries each week. Even when eating out, there are ways to minimize costs.
Meal prep. Expensive eating habits are most often due to poor meal planning, food waste, and convenience. Ready made options like salads and microwavable meals are often more expensive than preparing the food yourself.
Create a freezer meal strategy. Similar to the previous point, you can create and bulk freeze multiple meals ahead of time and choose which ones you want to eat later.
Make coffee at home. I know this doesn't sound as fun, but the latte factor by David Bach is a great analogy describing the power a small amount of cash flow has on your future net worth.
Create emergency meals. Dining out can seem like an obvious solution if you forgot to meal prep and don’t have anything immediately ready. Consider stocking up on some convenient pre-packaged foods or simple staples (like spaghetti or eggs) that you can prepare quickly.
Your Turn: Now it’s time to modify your food budget and free up more FI dollars to accelerate your plan. To view your spending and modify your budget in WizeFi, simply follow this tutorial.
Once you've reduced your food expenses, make sure to apply those extra financial independence dollars towards your 4-step plan.
In this example, you can go the 4-step plan and apply an extra $100 towards your Emergency Savings each month.
This one change has allowed this person to reach financial independence over 2 years sooner!