The $100 grocery challenge

Looking for ways to save at the supermarket? Try the $100 challenge. In this edited extract from her book, How to Pay your Mortgage off in 10 years, Serina Bird shares her tips for success and reveals five more ways to cut the costs of groceries.

If you are trying to save money one of the areas to look at is your weekly food spend. Food is something we buy every week and eat every day. To my mind, there is no better way to consistently save money than by working on your food budget. The good news is that it’s super easy to start saving money on groceries right now. Let’s take a look at the big savings that can be made on your weekly shop, starting with the $100 challenge.

The $100 grocery challenge

My family of four has a grocery budget of $100 a week. It’s a challenge, but we consistently have change left over.

According to a 2021 report by the ABS, the average family of four spends $242 on groceries (excluding alcohol) a week. Food prices have increased in the years since, so that’s likely to be a little higher now – let’s round up to $250. It’s also unclear if this includes cleaning items and toiletries, something that many families also spend a lot of money on. So, if $250 is the average food budget for a family of four, why would I set myself a $100 challenge?

A big part of it was to reduce food waste and to force me to get rid of random things I have in my cupboard, freezer and fridge. I also saw it as a way to save money for an expensive family cruise I  was planning. Over the four months leading up to our cruise, I estimate I saved around $3,200. Plus, I created freezer space that I used when we went away to further reduce waste. After we returned, I decided to keep going.

It’s important for me to point out that my kids aren’t deprived when we stick to our budget of $100 a week, and neither am I. The biggest change is probably that we all eat less junk food, although our trolley does still include chocolate, biscuits, ice cream and chips. When on this challenge, I am conscious of focusing on essential items, so I consider junk food a treat rather than an everyday item.

Here are a few tips and observations for you to consider if you set yourself this challenge:

Have a cash kitty for groceries

Though I could be more organised and set up a separate account for groceries, I find that cash really helps me focus. The kitty goes up and down depending on the weekly spend, and I like to maintain a buffer by collecting what’s left over at the end of each week.

Go hard early

When you start the challenge, focus on using up whatever you have at home first. I can usually spend less than $100 a week to begin with. That money then stays in reserve, building up in the kitty for when I need it.

Buy in bulk

Once you have reserves in the kitty, you can use the money for investing in bigger items. For example, I use these reserves to purchase essentials in bulk, such as a 12.5 kilogram bag of flour at Costco, milk powder and other similar supplies.

Get creative

Being on a challenge is a great way to use up items in your cupboard that you wouldn’t usually incorporate in your cooking – and sometimes you have to get creative.

Discover and get rid of UFOs

Everyone has a range of UFOs (unidentified frozen objects) lurking in the back of their freezer. Clean them out, making use of what you can, then restock them with better-packed, labelled items.

Keep it on a need-to-know basis.

As I mentioned earlier, my kids aren’t starving when my household is on the $100 challenge, but I still find it works best if I don’t tell them about it. I also spend less on grocery shopping when I go without my kids, as whenever I take them shopping we seem to end up with unhealthy – and unnecessary – food.

I treat my $100 budget as a challenge, but I want to recognise that for some people it’s a necessity. So many people suffer from food insecurity in silence. If that’s you or someone you know, while these tips can help, make sure to contact OzHarvest or your local food pantry for additional help and support. It takes courage to ask for help. Know that you can pay it forward when you are in a better position.

5 other ways to save on groceries

1. Buy what you need and eat what you buy

It’s estimated that 20% of all groceries purchased in Australia is wasted. That amounts to one in five bags of groceries being thrown into the bin, costing the average household between $2,000 and $2,500 each year.

The key to not wasting food is to buy only what you will eat and eat what you buy. Sometimes that means making do with what’s in the fridge, pantry or freezer rather than rushing out to buy new ingredients every time you cook. So, let’s start with checking what food you have already.

I  want you to go to your fridge. What is lurking in there? Are you going to eat everything in your fridge before it goes off? What do you need to focus on first? If you have space, consider having a separate shelf or container for those items that you need to use up as a priority. Alternatively, you could put a sticker on those items or sign up for some ‘use it up’ tape produced by OzHarvest.

Are there items in your fridge that you could freeze? Bread freezes well, as does cheese. Many vegetables freeze well, especially if you freeze them first in a single layer and then transfer them to a freezer bag or container.

Finally, give your fridge a good clean out. Reorganise things and, if necessary, put them into new containers. I find that clear containers, including jars, work best as I can see what’s in them. You can do a similar exercise for your freezer.

Don’t forget the pantry and kitchen cupboards. I tend to find I have a lot of random items: right now, that’s four bottles of balsamic vinegar, three bottles of Worchester sauce, two jars of paprika and two bottles of sesame oil. Once I’ve taken stock of my excess nonperishables, I  either pass them on through my local Buy Nothing Project group (you can find one for your area on Facebook) or make a plan to use them up.

My mum was an expert in what she called ‘improvisation’, meaning if she didn’t have the exact ingredient called for in a recipe, she would just use something else. These days, with the help of the internet, it’s easy to search for substitutes. It’s even possible to cook a cake without an egg once you know how. (Hint: in many recipes, you can use a tablespoon of vinegar or soy flour.)

2. Start planning meals and making shopping lists

Supermarkets are designed to encourage us to spend. They give us large trolleys to fill up and lots of appealing displays, including end-of-aisle specials, to tempt us. They make us walk through most of the store to find essential items like milk and eggs. How often have you gone into a supermarket to buy milk or bread, only to come out with 10 items – and not the milk and bread?

To combat supermarket distractions, you need a plan of attack. That plan is called a shopping list. My family keeps our shopping list and a pencil attached to the fridge. Whenever we run low on something, we write it on the list. When we go shopping, we take the list with us and work through it to ensure we have purchased everything we need. It also stops us from adding additional items – unnecessary expenses – to the trolley.

By being organised, I ensure that I have the ingredients I need to cook meals for the week. This means I’m prepared for the week and helps reduce unnecessary trips to the supermarket. If there’s something I need, or something I use up when cooking a meal, I immediately add it to the shopping list.

3. Think about where you shop – it makes a difference

If you think all supermarkets are the same, think again. I’ve tracked prices for years. I’m frugal, so I remember the costs for key staples. My husband and I mostly shop at two places: ALDI and Costco. Occasionally we will shop at a fruit and vegetable market, and at independent grocers. I put a lot of our savings on groceries down to where we shop.

I regularly shop at Costco for key items that are both cheap and high quality, such as beef and pork mince, bulk flour, UHT milk, toilet paper, rotisserie chickens and large tubs of vegemite (not to mention non-grocery items such as fuel and tyres, and even visits to the optometrist – all of which can offer great value). I just have to be careful to avoid purchasing ‘wants’, such as brandy in large dragon-shaped bottles, giant teddy bears, massage chairs and diamond rings with $500,000 price tags.

Costco membership isn’t free, though, so it’s important to decide (based on your proximity to a store and whether the stock suits your needs) whether it’s the best value for money for you.

→ You may also be interested in: The Best-Rated Supermarkets

4. Eat with the seasons

These days, many items are available year-round. Supply chain disruptions notwithstanding, we receive fresh peaches, figs, garlic and other items from around the world all year long. With all this availability, it’s easy to forget that most crops have an ideal season – and that when you buy in season, it’s usually much cheaper.

People also often plan their meals based on what’s in their favourite cookbooks. That isn’t wrong, but it’s worth being aware of what is in season first and then deciding what to cook. You can find out what’s in season in your area online. Sydney Markets and Harris Farm Markets, for example, both have comprehensive in-season lists on their websites. Supermarkets also highlight in-season products in their catalogues, and often they will feature those produce items as loss leaders (meaning they might offer mandarins or apples at reduced prices when they’re in season to get you through the door). ALDI’s Weekly Super Savers provide some of the cheapest fruit and vegetable prices I have found.

Don’t forget that not all food has to come from a supermarket or local grocer. Local and car-boot markets often have a range of items sold by people who grow things as a hobby in their backyards. Many fruit and vegetable markets only open a few days a week and sell off items at reduced prices on Sunday afternoons. You will need to sharpen your elbows and get in quickly, as some people literally fight over the specials.

You can also grow your own food or make friends with people who do. Even on my shady balcony, I manage to grow parsley, rocket and more. When I lived in a house in a suburban area, my neighbours would regularly give me homegrown items, and I would give them things in return. If you start sharing excess food items with people, you might be surprised by what they give you in return. If you have too many homegrown items to use or give away, don’t forget the joys of preserving.

5. Make your own

Making your own bread, yoghurt and jams can bring extra savings that really add up. Cooking in bulk when key ingredients are cheap and freezing for future meals also makes good sense. Check out some of the super simple frugalista recipes I’ve put together on my website and see what you can incorporate into your practice. You never know – it might even be fun.

→ You might also like: 13 ways to save more than $3,500 a year around the house

This is an edited extract from How to Pay Your Mortgage Off in 10 Years: Even when interest rates are going up (Major Street Publishing $29.99), republished with permission.

Cover image source: Ipek Morel/Shutterstock.com