By Dr. Disha Spath, WCI Ambassador
How can you spend $1,000 per month on groceries for a family of four?!?! That is a sentiment I have often heard, especially when I share my budget from when I was going gazelle speed in paying off my medical student loan debt. It might seem like such a small amount to many high earners. But during much of my upbringing, I was raised by a single mom on a teacher’s salary (roughly $3,000 per month at that time), so, relatively speaking, $1,000 per month on groceries seems like living a very comfortable life to me.
Even though I’ve gone from broke to financially fit quickly, I still live in a high-cost-of-living (HCOL) area in upstate New York, and I have a family with two kids and large dogs. I LOVE food and value organic groceries so trying to feed my family well while maintaining a strict grocery budget has put the skills I learned as a child to good use. While every family’s need is different and you certainly don’t have to spend what I spend to be financially fit, here are a few tips that might be useful if you’re trying to cut grocery costs.
#1 Arbitrage Where You Shop Carefully
I know we’re all busy, but price-optimizing the things we buy most often can really pay off. While there is variability in the prices of specific grocery items at different stores, certain stores cost more overall than others. In general, Walmart and Aldi are usually the lowest-cost providers of non-bulk nonperishables. Aldi saves costs on personnel by incentivizing customers to return their own carts (25 cents is a solid psychological motivator apparently!), by using display-ready boxes to stock shelves, and by using locally sourced produce.
Acorns did an interesting study in 2022 where it compared the costs of grocery staples at grocery stores around the country. It concluded that while there was variability in individual item costs, total grocery costs at most suburban grocery stores across the country were consistent. Walmart, Aldi, and Target had similar pricing on staples, but Trader Joe’s really took the cake for expensive groceries. Boneless chicken breasts were $18.80 at TJ’s vs. $9.27 at Aldi’s. Prices at Whole Foods are similarly 10%-20% higher than other stores.
Choose what you buy where carefully. I’m not saying to never go to TJ’s or Whole Foods (lord knows I love my vegan tikka masala and expensive cheese). I’m saying utilize them as specialty stores for certain specialty items and do your grocery staple shopping elsewhere, so you can have 18-month aged gouda and still stick to your budget.
Check out this graphic, via Acorns.
#2 Consider Going Local for Produce and Perishables
Shipping costs for these items can really inflate their costs. If you can find items at a nearby farmers market or farm share, you can often save money as compared to the big box stores. I’m lucky to have many farms around that do farm shares. We support the farm at the beginning of the season and then benefit from their fresh produce during the season. They even offer a discount for volunteering to help at the farm, and that brings my cost to $28.40 per week for a LARGE box of organic veggies. Growing your own food in a garden is another option and makes produce essentially free, though there is more time investment.
Milk and eggs are big-ticket staple items that have taken a huge inflation hit recently. Look around to see if there are any local farms you can support. We save some money (about a dollar per half-gallon) by having a local farm deliver fresh grass-fed milk, eggs, and cream to us weekly—yes, we have a milkman! This is variable by region obviously, but it doesn’t hurt to look. If all else fails, try services like Misfits Market that try to reduce food waste by offering slightly imperfect produce for a discount. Also, look for local meats. Our local butcher is packed on Wednesdays. That’s because that’s the day they have amazing sales on fresh, local meat. Admittedly, I live in a relative food oasis here in upstate New York, but give your local butcher or seafood store a chance. You might find some real value there.
More information here:
Finding All the Right Ingredients
#3 Eat In-Season Produce
As mentioned above, shipping costs can inflate food pricing. Eating in season and not paying for shipped produce from different corners of the world can keep costs and our carbon footprints small. Also, choosing to eat more veggies and less meats can lower overall costs.
#4 Consider Bulk Buying
If you have storage space available, consider buying staple nonperishables in bulk from stores like Sam's and Costco, which often offer much lower price per unit than other stores in exchange for buying in bulk. Alternatively, stock up when things go on sale at your normal grocery store.
More information here:
10 Frugal Hacks to Automatically Save Money for Busy Professionals
#5 Consider Couponing and Credit Card Offers
I don’t have much time to track coupons, but I do keep my eyes open for credit card cash-back offers for certain stores where I shop. For example, American Express recently had a cash-back offer at Walmart. It wasn’t much effort to change my payment method at checkout to my Amex to take advantage of this. Some people really make out well by stacking deals like this with local grocery coupons and manufacturer coupons. If that’s your jam, go on with your bad self.
#6 Shop Online and Watch Delivery Costs
The advent of online grocery shopping and delivery services has been such a godsend for busy households. Shopping for groceries from home helps streamline costs because it gives us the chance to look in our cupboard and see if we really need something that we are ordering. Also, it saves a ton of time that we could otherwise spend in a more enjoyable way than walking between the aisles looking for one elusive item. But watch those delivery fees. Often, delivery fee + tip can raise the total by $10 or more. These fees can be avoided by doing pickup at the store, which is generally free and still results in plenty of time saved.
#7 Shop at Ethnic Stores
It’s amazing to me how much box stores charge for spices like cumin and turmeric. The markup for “international” or “gourmet” spices is incredible at neighborhood grocery stores. Go to your local ethnic store instead, and you’ll likely find much better prices per unit. Plus, these stores usually have well-priced produce and meats available.
#8 Look for Deals on Alcohol
It is possible to save a lot of money by knowing where to shop for wine, beer, and liquor. Where alcohol is sold and the laws regarding this are very state dependent. Look for a wholesaler in your neighborhood and compare prices carefully, because there are a lot of variabilities here. I’ve really enjoyed stacking Macy’s wine store coupons with cash-back offers on credit cards to get nice wines for $10 per bottle recently.
More information here:
Real Life Examples of Physician Budgets — From the Frugal to the Extravagant
#9 Batch Cook and Make Things from Scratch
Once a week, I try to make a big pot of something that can be individually packaged to be used for meals throughout the week. This makes life so much easier and lowers overall food costs by reducing money spent at restaurants. Making food at home is obviously a lot cheaper than buying it. And you can make a lot more from scratch than you think. I recently discovered how easy it is to make colored sugar for sugar cookies at home (seriously, just shake a cup of sugar with a few drops of food coloring). I can’t believe I have been spending $6 on three ounces of Wilton colored sugar every holiday season. The equivalent amount of homemade colored sugar would cost about 10 cents. I try to make as much as I can from the bulk ingredients that I have instead of buying pre-packaged boxes. It’s a lot cheaper and a lot healthier.
#10 Shop When You’re Not Hungry
Finally, a word to the wise, don’t go to the grocery store after a workout . . . especially not Trader Joe’s. Get some food first. The hungrier you are, the more the beautiful displays will result in impulse shopping. I speak from experience (see my freezer full of TJ’s frozen chicken tikka masala for evidence).
Before implementing these grocery hacks, I was spending more than $300 per grocery trip even before we had two kids. Once I really got into price-optimizing groceries, I cut that bill in half or more. There were months in our super frugal time when we only spent $600 a month on groceries. The biggest bang for the buck was switching from Price Chopper to Aldi. Over time, our costs have crept up a little as we switched to pickup from Walmart and added milk delivery and others, but we still keep our groceries somewhere around the $1,000 per month mark on average. If we didn’t use some of these tips, we could easily spend $2,000 per month on groceries. While it does require some upfront work, these changes soon become automatic. Plus, the time saved with online ordering makes up for the time spent optimizing costs. Once the routine is established, it’s an easy $1,000 per month savings that can add up to some real wealth-building power over a working career.
So, shop smart for nonperishables, try to shop local for perishables, and also help reduce your carbon footprint. What’s not to love?
What's your monthly grocery bill? Would you consider implementing these tips? Do you have your own money-saving tips to share? Comment below!
Excellent tips. I’ve never consistently gotten local eggs (now the cheapest are $4 a dozen at the store), or local milk because they were pretty cheap until this past year or so (milk was $2, eggs were $2).
I have recently rediscovered Aldi’s and based on the parking lot, so has everyone else. I love the Kirkwood breaded chicken breasts. I air dry one for lunch and put it in a nice bun, loaded with deluxe toppings and it approaches my old favorite from Chik-fil-A for about $2 a sandwich. I use them to make quick a Chicken Parmesan too when I’m in a pinch.
Our grocery bill now sits close to our health insurance (I am part time, so I lost my free health insurance) and the “cabin in the mountains” mortgage per month.
I have been cooking a LOT more and making chili, ham and bean soup, broccoli cheese soup, our favorites from Olive Garden, and others from a Facebook group about soups. I’m making my own marinara sauce these days and freezing the excess. There is always a leftover soup in our refrigerator. My daughter frequently takes leftovers for her lunch so that she spends no money (of hers) on lunches.
I used to never pay too much attention at the grocery store when I worked full time, but I sure do now on our half time income. Our restaurant budget was out of control for the first six months of “retirement”, but shopping carefully and cooking more helped there.
We live in the same area (I think it is closer to mcol having moved from the city) – what farm share do you use?
Oh nice! We support Dennison Farm.
Excellent article. I, too, love to eat top quality foods without breaking the bank. Fun!
Having a garden does not mean essentially free produce. Except for annuals you need to buy the start up plants and seeds and you pay a ton more for water. Plus you have to buy the garden plots and fence to keep rodents out. Depending on size a start up garden can easily cost $500 and think of all the produce you would need to get for “free” vs buying. Then don’t forget to add water costs and your time
$5 homegrown tomatoes, has to be a hobby not (for me anyway) a way to save money
Just like having 5 libraries I patronized when we lived more rurally, I also shop at several different stores. I haven’t fully (recent move) sorted out exactly where the best places are to shop, but posh and/or name brands (Organic Valley milk, King Arthur flour, Oreos) are much cheaper at our military commissary which also has lower cost (or not available anywhere else) foreign and specialty items like seaweed wrap crackers and Ritter Sport. (They are also free of our onerous 9% grocery tax, having instead a 4% surcharge.) However they are often out of stock on general items and produce can be iffy, so I never expect to do a complete shop there, I just stock up when we will be in the area and able to get cold stuff home in time.
Still learning where Sam’s (discount membership offered from TMobile last year) is cheaper than everywhere else, but won’t renew membership for over $10/year. Always end up buying too much. Publix has some posh items but again expensive- but when we take my posh MIL there to shop we pick up those missing items. And I make an occasional trek to Whole Foods to get Wensleydale with cranberries which I’ve been unable to get Publix to stock so far. And end up with a few other items in the bag those days. As I let the Sam’s card expire I’ll have to spend some more time at Aldi’s- it is REALLY lacking in the broader assortment to let me do a complete shopping trip, or maybe we just haven’t gotten used to it. I had hoped for the wonderful German chocolates etc. available at their German sister store Lidl’s but have been disappointed with much of their new to me brands especially the foreign ones.
Farm share is a great idea- I got our whole military patch started with one when we lived in England- but found with it and our next posting that too much of it went out to the compost pile, so I don’t plan to join one here. I don’t mind paying extra for organic and farm share if we actually enjoy the product (but haven’t been convinced by organic meats and chicken for double the price).
Frozen vegetables are often healthier than fresh. They are frozen very shortly after harvesting and maintain their nutrients better than fresh. Of course, not all veggies freeze well… For those that do, buy in bulk, perhaps when on sale, and never lose any to spoilage before you consume them.
Take the alcohol budget to zero.
I am not sold on farmers markets or delivery services. Commercial agriculture is far more energy efficient. All those small trucks converging on the market burn more fuel per unit food than do the large trucks from large farms. It is possible the direct cost to you might be lower, have to shop yo know, but this ignores the environmental costs.
Limit the number of shopping trips. Going to the store costs transportation fuel. It does not show up on your grocery bill but it costs money.
Eat a simple, plant-based diet. Soy is cheaper than meat and healthier too.
Instead of finding less expensive sources of spices, cut them out altogether.
Cut out spices??
You had me until there. Maybe take it easy on the saffron, but spices are my #1 way to make cheap food (lentils, beans, veggies) feel gourmet – or at least palatable. 😉
You are saying it right.
I am using a LOT more spices since I started learning to cook more exciting and tasty foods on social media.
I just made an Asian pork dumpling soup with Crimini mushrooms, Lion’s Mane mushrooms (that I grew myself), baby kale, bean sprouts, Bok Choy, onion, garlic, sesame oil, soy sauce, and beef broth. It was excellent.
Thanks for the interesting article. I also live in upstate New York. We have no Trader Joes or Whole Foods but do have Aldis. I have access to a commissary but it is a drive and I don’t find it worth the hassle unless I am on post for something else. I find the best way to save money is to not waste any food. Don’t forget food in the back of the fridge. Cook food that can be turned into leftovers. I find buying a head of lettuce lasts much longer than the precut boxed salad. And have a meal plan that can work to reduce waste. Buy ground beef on sale, brown it, and save it in portions that fit your recipes. Label everything that goes in your freezer! Write down the date everything is opened when you put it in the fridge so you have no guessing games. Teach kids to cook simple meals. Running around to different stores can save money but also be careful as your time and energy comes at a cost. Only buy things in bulk that you use in bulk and are not perishable. Gardening can be a fun hobby but not sure how much money it saves – at least in my case. My chickens do seem to be saving me money lately with the price of eggs. I do find growing sprouts and micro greens all year round that I toss on salads an easy thing to do and does save money. I also feed the chickens the micro greens and scraps. See if you can learn to make things that sneak into your budget to make it out of control – in our family – boba tea, smoothies, acai bowls, fancy coffee drinks. Eating these out are special treats not something we do on a regular basis.
man, all you guys living in NY and no mention of Wegmans? I’m in NJ and the closest supermarket to me is Wegmans- very hard to resist not shopping there! quality food, quality prepared foods, Nick Jr. playing on the big flatscreen they have in the kids area . . . I just can’t resist overpaying for groceries given that Wegmans is not just grocery shopping, feels more like an experience! I just make sure to keep budgeting the $1200 bucks a month to that place.
I live in the Hudson Valley and I think the closest Wegmans is in New Jersey. I did love Wegmans when I lived near one. You are lucky.
Excellent tips! I agree with many of the tips from previous commenters as well. We are a family of 7 and are definitely still in the wealth accumulation phase, so saving costs on groceries is important to us.
I perform a rough meal plan every two weeks with recipes saved for quick reference. Unfortunately, neither my husband or myself are very creative cooks! It’s a rough plan because I like to have the flexibility to move meals around, prioritizing fresh produce the first week while freezing leftovers likes soups, casseroles, veggie patties, etc. Then the second week we might have those leftovers as well as more shelf stable items and steamed veggies from the freezer!
We eat a mostly vegetarian diet, so maybe that helps also. For a grocery trip this week with current inflation, we spent about $250 purchasing many organic options where it was possible. This grocery haul will feed our family comfortably with high quality home-cooked meals for 2 weeks. Keeping grocery trips spaced out like this and avoiding eating out except for special occasions helps a good bit.
We do use Sam’s Club for bulk purchases but try to build a list of multiple items we need and stick to the list as it is so easy to drop $400 there. Those trips are as infrequent as possible!
Thanks for the great article on a topic that seems to be affecting all of us!
Great article! With the high cost of groceries, I’ve been tracking monthly grocery spending and implementing several of the above strategies. I would, however, give a word of caution about #7: many imported spices, particularly sold at “ethnic” stores, have been found to be contaminated with high concentrations of Lead, which is especially harmful for young children. So, for spices, I try to stick to more trustworthy brands even if it means paying a little extra.
The spice trade is historically one of the most interesting aspects of human history. For many centuries bringing home a shipload of spices was essentially the equivalent of becoming a billionaire overnight today.
I have NOT found specialty grocers (foreign) to be cheaper; just supply in larger packages a few things I use a lot of- the rest my McCormick or Penzey’s jars suffice. Though they do also stock things I just can’t find elsewhere- certain types beans and the interesting crackers now occasionally on offer in mainline stores (not the usual rural Piggly Wiggly* though). I do mail order for saffron and vanilla pods, but my last ounce saffron has lasted me for a few years now as have my vanilla pods. Hope when I need more saffron I can get just as good.
*One of the aisles at a Pig we use is “Baby Milk” ie formula.
Shopping at Aldis and eating vegetarian, mostly unprocessed foods brings the cost under $500/month
And you will live a longer healthier life.
Loved the post and the comments here.
I learn new things every week reading this blog.
I’d never heard of Wegman’s.
I also never thought about contamination in spices, but I do tend to buy branded spices.
Thanks for the helpful article. We’ve observed farmers’ markets aren’t always cheaper than local grocers. We try to support local independent grocers when we can, even if their prices are sometimes a bit higher than big box stores or chains.
Here’s an article about contamination in spices and herbs that might be of interest to WCI readers of this thread:
https://www.consumerreports.org/food-safety/your-herbs-and-spices-might-contain-arsenic-cadmium-and-lead/
There are great tips in here.
Some ways we try to save money on food costs (not grocery costs specifically) while being sensitive to the cost of our time:
1) Buy high quality ingredients, often batch cooked, and eat at home vs. getting take out for convenience
2) Order online to avoid impulse purchases – and save tons of time with pickup services
3) Do not waste food!
4) Prefer whole foods over processed ones (produce, fish/meat, etc.)
We shop almost exclusively at Whole Foods and farmers markets. This works for us.
Thank you, this was a fantastic article!
Question: Have you heard that in many other countries, people put mealworms and crickets (low cost source of protein) into their meals? For example, if you are making a stir fry, you could put some mealworms or crickets in it. I’ve proposed this to my wife and it was a hard “No.”
Weird that she wasn’t willing to do that.
I have eaten a grasshopper, flame broiled on a lighter. Part of SERE (Survive, Evade, Resist, Escape) training in the Air Force. Wasn’t too bad. But the rabbit was better.
Shopping at Lidl really cuts my grocery costs, even compared to Target. They have great private label items manufactured in their German facilities (like their chocolate) and also import many European products, besides carrying many American staples. Eggs and milk are still below what Target charges (only Walmart charges a little less). Lately I noticed they are carrying more ethnic products depending of store location to cater to locals, and they work with local small farmers.
I live in Virginia, about same distance from Lidl, Aldi, Target, Walmart, Whole Foods, Giant, and few speciality food and ethnic stores, and I still do most of my shopping at Lidl. I find their organic fresh veggies and fruits section growing, they have low prices on organic chicken and grass fed beef (only Costco offers less on chicken), and I love that they have a bakery! They offer fresh daily baked products — I especially like their rustic baguettes, German sourdough, croissants, and apple turnovers.
For those curious, Lidl is not owed or affiliated to Aldi. Lidl is owned by the Schwarz Group, Germany’s largest retailer and the world’s 4th largest retailer (according to Google). Also — and I find ironic due to the huge price discrepancy, Aldi bought Trader Joe’s a while back.
I know Aldi is very popular but I found their stores dark and dingy (tried 4 in VA) while Lidl stores are cheery and organized. The smell from the bakery at the front of their stores always get me! Lately, I only go to Target, Walmart or Giant when need very specific things that Lidl doesn’t offer (and I almost cried when had to pay $4.99 for dozen eggs at Giant the other day only because I was too lazy to drive 10 mins to Lidl).
If you have a Lidl within short driving distance, I highly recommend you try them — right now they offer .98 avocados and a bag of 4 mini avocados for 1.98, right in time for the Super Bowl!
The common advice is to not shop when hungry. That is wrong! Always shop when hungry. Later in the week you will be glad that you got those tastier foods rather than trying out Turnips and Rudabega, like I did this week.
I don’t even see the number one rule here. Know what stuff costs, and what is a good price and what is not. Start out by keeping a price book where you record all the items you buy regularly and record the lowest price you have paid (and add to the page if you find a lower price) and where you paid it. Eventually you will know off the top of your head what your target price for the things you buy regularly should be. This is a little bit harder recently with soaring inflation, but at least you will have some ball park figures in your head and not be taken in by fake “sale prices” that aren’t really a bargain. Watch the sales flyers for sales on certain items that rotate about every 3 weeks or so and buy those then, especially the non-perishables. For some real hard core saving strategies, see if you can find copies of any of the “Tightwad Gazette” books by Amy Dacyzyn, especially the last one with volumes 1-3 all in the same book. Great strategies for saving money on lots of stuff, including groceries.