YIKES! Using debit card vs. cash.

[Wink]

I took a hard look at the past 3 months expenditures on groceries (food), personal care items, household items (paper goods, cleaning items etc) and I was mortified to see that I spent an average of $378 a month! I am a single person and that is way too high.

Part of my problem is that I pay with my debit card, and some of that expense is cash back withdrawls when I check-out. I also HATE to grocery shop. Some people hate washing dishes or taking out the trash, mine is grocery shopping. So I tend to not be organized, don't make a list, use coupons here and there, stop in to the store several times a week etc. I just want to get in and out as fast as I can.

My plan now is to set a limit of $200 a month and use the envelope system and start paying cash only. I went shopping this morning armed with a list, after I planned my meals out for the week, coupons, and my $50 cash. I spent $48.56.

As upset as I was with myself, I am happy that I seem to have found another $175 a month to save.

Anyone else have any good tips for grocery saving?

I think it's the people on cell phones in the grocery store and check out lines that make me hate shopping. Going on Sunday morning it was pretty quiet.

[maat55]

IMO, a person will spend more using a credit card than taking only an certain amount of cash. This is usual for those who do not shop on a planned budget, which many are little flexable.

Those who are serious about spending a certain amount can do it with credit or cash. Many who are not on a tight, strict budget can have variations that tend to be higher than their amount in mind.

When I and DW were first married, we lived on a tight budget and always took a calculator and cash to the store. When I got serious earlier this year to build our EF and payoff our remaining debt, we spent less at the store than usuall. Since our goals have been met, our grocery bill has increased some(pisses me off) but to keep the peace I ignor it.

IMO, planning, cash and a calculator should be used when on a tight budget.

[disneysteve]

Originally Posted by Wink

some of that expense is cash back withdrawls when I check-out.

Where is that money going? I think you need to break down how much of the $378 was actually purchases and how much was withdrawals and then look at where that money got spent.

[SacredFaerie]

This isn't a grocery savings tip but a savings tip in general:

Use your check register for debit purchases as well and keep on top of that cash back. I prefer to use my check card because it's safer than cash but I don't get cash back here there and everywhere.

[Ima saver]

I don't even own a debit card. I always pay cash for groceries and other purchases. I use the envelope system.

[scfr]

Before I go to the store, I calculate my budget for that trip based on how many days' groceries I am buying. I write the dollar amount on my shopping list, and while I'm shopping I keep a tally of the cost of what I am putting in my cart. If I'm under my dollar amount, great, but if I'm over, then something has to go back or get substituted with something less expensive. Since I'm a "numbers gal" this works for me the same as cash even tho' I pay with my credit card.

Another thing I do is a bit unconventional. Many people suggest you stick strictly to your shopping list. I make a list, but I allow myself flexibility once I get to the store based on what is on sale and the quality of the goods. For example, I'll write down how many servings of vegetables, fruit, and dairy I want, and I'll make note of any advertised specials that look interesting. But I won't make my final decision what to buy until I get to the store. Sometimes advertised produce is just not fresh-looking. Or sometimes I can find a better deal on an alternate item ... for example, why buy cottage cheese just because it is on the list when they are running a fantastic in-store promo on yogurt that I didn't know about until I got to the store? Since there are only 2 of us, and we eat very simply-prepared things, this works well, and might work for you as a single person too. I think this would be harder to do if you had a large family to feed, where you needed to plan menus around multi-ingredient recipes.

[disneysteve]

Originally Posted by scfr

Another thing I do is a bit unconventional. Many people suggest you stick strictly to your shopping list. I make a list, but I allow myself flexibility once I get to the store based on what is on sale and the quality of the goods.

I'm the same way. I'll have a list, but the list is not intended to limit what I buy. The list is so that I don't forget certain things. I will buy numerous things not on the list either because they are on sale or I forgot we needed them or it is something we like and haven't had for a while or a meal idea occurs to me while I'm browsing.

[Wink]

Originally Posted by disneysteve

Where is that money going? I think you need to break down how much of the $378 was actually purchases and how much was withdrawals and then look at where that money got spent.

I was spending about $280 on groceries and about $100 was cash withdrawls. I honestly could not tell you exactly what I spent that $100 on.

I think until I get more disciplined, the cash system will take care of this.

[disneysteve]

Originally Posted by Wink

I honestly could not tell you exactly what I spent that $100 on.

There's your problem. Whether you pay by cash, check, debit or credit, you need some way to track what you are spending. I suggest a little notebook that you can carry with you. Write down everything you spend. Then you can sit down monthly and review the list and see where things are going off track.

[fruitbowlk]

I use my debit card for everything and check my checking account daily to keep track of my amount and where my money is going.

[SacredFaerie]

That's why I say just continue to use your debit card and mark everything down. Because what's to stop you from going to the atm to get cash to spend on those unaccounted expenses when the envelopes run out?

[Snave]

I am a cash person completely. We seem to have a conversation every few months on cash vs. debit cards vs. credit cards. I know there are differing opinions and what is good for one is not good for all, so just find what works best for you. Personally, I like the finite amount of cash and knowing that I have to keep it to that.

[Wink]

Originally Posted by Snave

I am a cash person completely. We seem to have a conversation every few months on cash vs. debit cards vs. credit cards. I know there are differing opinions and what is good for one is not good for all, so just find what works best for you. Personally, I like the finite amount of cash and knowing that I have to keep it to that.

I Like the idea of trying to use just cash for a while to see if it works better for me then using my debit card, which hasn't been working so well for me. I don't really use credit cards much and when I do I always pay the balance in full when the bill comes in.

It was also a matter of just getting organized before I go grocery shopping. I did really well this morning with my list, my coupons and my $50 in cash. No debit card, no cash withdraw.

[snafu]

I take grocery list with 5 day menu plan jotted on the back. If I don't plan menus we end up with that whine-y...'there's nothin' to eat!' We've been buying produce at the farmer's market because we can choose quantity. Packaged stuff is often too much for us to consume quickly.

My latest trick is to use fresh veggies for the 1st part of the week and revert to frozen veggies for the last few days if needed. With teens & their friends you never know how much will be eaten and what will be rejected. Weekends are kept really simple. Just now Paninni is a big hit.

The weather has been horrid so I've made soup in a crock pot every other day. It's cheap, there are no chemicals and a great way to use holiday leftovers! I try to buy non food items at a discount store as those products are pricey at the supermarket.

[LivingAlmostLarge]

Whether you use cash or credit or debit I've found grocery meal planning the biggest money saver. When you plan meals you are less likely to eat out. Also you should plan meals around the weekly shopping guides.

I unfortunately am a poor cook so I have a rotating few menus that work. It's very simple eating. I also buy fruits and veggies on sale. Where I live I can't find cheap veggies that are old.