How to Create a Monthly Budget for Food

Money crunching can be a harsh fact of life sometimes, but whatever your income situation, you still need food to live. So it’s important to know how to properly budget your food bill to accommodate the resources you have as well as the selection that’s available to you. Here are a few tips on how to successfully make and stick to a budget for your groceries.

Know What You Have to Spend

Establishing your financial situation is key to building any budget, so sit down and go through your income to determine how much you can allocate for food. After removing fixed expenses like rent, utilities and car payments you will know how much you have to devote to variable expenses like leisure activities, clothing and food. At first, getting these numbers correct may take a little time, but after a few months it will become easier to accurately estimate how much you have to devote to each of your expenses.

Track and Compare

Now that you know your budgetary constraints, find out how much you’ve been spending on food each month and make sure that number is realistic compared to your means. You can use your bank and credit card statements to track this – don’t forget to keep receipts – or you can monitor your spending in various categories using finance software. Next, compare your totals to the USDA Food Cost Plan that matches your demographic. If it turns out your food spending matches up with the liberal end of your plan then you should be able to cut down on food expenses to better fit your budget.

Prioritize and Plan

Armed with accurate financial data, you’re now ready to set a monthly food budget. In doing so, rank the foods you buy in order of priority – preferably keeping healthier items like produce and whole foods at the top of the list. This way when you’re shopping you can start with buying the essentials and then consider lower priority items if there’s still room left in the budget. You should also plan out your meals every week to ensure you have the right ingredients on hand and lessen temptation to go out to eat.

Eat In

Eating out at restaurants is deceptively expensive and can mess up even the best food budget – so avoid it as much as possible. While this sounds like a drastic measure, it’s necessary as it’s easy to lose track of your spending and can quickly overwhelm your financial resources. Limit yourself to eating out only for special events or the occasional meal with friends and do not simply go out because you’re feeling too lazy to cook. Keeping these priorities straight and preparing meals for the week in advance can help you stay disciplined and can pay large dividends in the long run.

Whether you’re simply trying to save money on food every month or looking to buy extravagant gifts for foodies in your life on a budget, it’s possible to accomplish your goals without putting too large of a dent in your wallet. By monitoring your food buying activity and planning ahead, you’ll be able to eat well while still maintaining fiscal responsibility.