(Prosperity - Thrifty Gal) The temperature’s rising – winter clothes are being shed, and it’s almost bathing suit season (gulp). If this isn’t enough to make you think of going on a diet, here’s one more reason to consider cutting back on consumption – the rising cost 
of food.
The US Government’s Department of Agriculture forecasts that the Consumer Price Index (CPI) for all food will increase 4 to 5 percent during 2008. March 2008 saw a 4.5 percent increase in the CPI of all foods to that of March 2007. A monthly budget of $250 for food and drinks equals $3,000 annually. With the forecasted increase, you could be spending up to $4,500 for the same grocery list.
Several factors are sending prices soaring higher than Timothy Leary was in 1969:
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There is a global shortage of food, created in part by weather related production problems.
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Exports of US agriculture have increased due to this demand.
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Crude oil prices, and the price of diesel, are rising - increasing the cost it takes to get food to distributors and retailers. Not to mention increasing your costs when you drive to the store.
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There’s been an increased use of certain food commodities, like corn, for bioenergy sources.
Finding the best deal on a bag of nacho chips is a lot like finding the best blue chip – use research, apply restraint (if it sounds too good, it probably is) and always remember: buy low. Here are some tips on how to keep your monthly food bill reasonable.
Plan Ahead. Before you leave your house, or click send, have of strategy of what you're going to get, and how you'll use it.
- Be as organized as possible. Like anything else you’re spending money on, do your research. Plan a weekly menu - this dictates what you’ll get, and cuts back on impulse shopping. One way to have fun with your menu and avoid a food rut is to be seasonal. Fruits and vegetables in season cost less than those out of season. Shop with a list.
- Put a little effort into it – Prepared and packaged foods cost significantly more than their raw ingredients. You’re paying for the convenience of not having to cook, but is it really worth it? The exception: frozen vegetables may be cheaper than fresh.
- Shoppers Rewards – Join the clubs offered at your local supermarket and drugstores; they give preferred shoppers cheaper prices. Check out clubs like BJ’s ( $45 annual fee), Costco ( $50), and Sam’s Club ( $40) to see which one suits you the best (and is closest to you).
- Eat Well - Veggies, pasta and eggs all cost less than meat. Fruit and vegetables fill you up more than junk food, so what you buy goes farther. Finally, shopping at farmer’s markets may eliminate costs like distribution and the overhead of a bodega or supermarket. Try eating a vegetarian meal three times a week - according to the USDA, meats and dairy have shown the greatest increase in CPI.
- Shop Online – online grocers such as FreshDirect (in the New York City area), Spud.com (In the Northwest and California) and Drugstore.com usually offer slightly lower prices because they do not have the costs of a retail location. Its easier to stick to your budget when you see a running total as you shop.
Learn what to do in store to keep the savings coming.
| In Store Savings - - > |
