With the looming cost of living crisis, growing your savings could be a particularly difficult task right now. For most people, saving would mean constantly cutting back on things that they enjoy but are not essential. However, one non-negotiable for any household is their weekly food shopping.
But this also presents an opportunity to add to our saving pots by shredding some of our grocery bills. Here, I’m going to share with you how I’m planning to free up around £1,000 this year by doing exactly this.
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How much do people actually spend in a year?
Grocery shopping is actually one of the biggest weekly household expenses according to the Office of National Statistics (ONS).
The average UK household spends just under £62 a week on food and non-alcoholic drinks. While for a household with two working people, the weekly average goes up to £73.90. In a year, this stacks up to £3,842.
Making the most of my budget
Honestly, this is one of the best decisions when it comes to personal finance, and I cannot stress this enough.
So what I’ve been doing for years now is setting my budget for the month. Then every Sunday, I sit down and work out how much I’ve spent in the week by classifying everything into categories (think groceries, eating out, transport, etc). This gives me a really clear picture of where my money is going and the types of transactions I’m making.
By keeping a close eye on my spending, a trend I’ve noticed is that I buy most of my food in a big shop at the weekend and that lasts me for the week ahead. However, I also tend to do a few smaller shopping trips during the week that are more impulsive than essential. All in all, they add up to around £20 a week. So, by simply shedding these impulsive buys, I could bag myself around £1,000 a year.
I know we all have different circumstances. So, I’ve taken a look at what weekly savings can add up to over a year depending on how much you save. And you can use this alongside the Motley Fool’s savings calculator to see how this approach could help you achieve your financial goals.
| Weekly savings | Annual savings | Weekly savings | Annual Savings |
| £1 | £52 | £11 | £572 |
| £2 | £104 | £12 | £624 |
| £3 | £156 | £13 | £676 |
| £4 | £208 | £14 | £728 |
| £5 | £260 | £15 | £780 |
| £6 | £312 | £16 | £832 |
| £7 | £364 | £17 | £884 |
| £8 | £416 | £18 | £936 |
| £9 | £468 | £19 | £988 |
| £10 | £520 | £20 | £1040 |
What else can you do to stay on track?
1. Take a packed lunch to the office
Since the Covid-19 restrictions were lifted, many of us have made our way back to our offices. Maybe not as often as before, but this still makes for an excuse to go out for lunch with colleagues or stay in the pub after work. As a result, we’re going to spend a bit more…and likely have a good time in the process.
So, what I tend to do is prep an extra portion of whatever I’m making for my evening meal and take it for lunch the next day. And in the process, I save quite a bit. It may not be glamourous, but it’s effective. The best thing is that I don’t even miss out on social gatherings as well. I simply have my food before we head out.
2. Think about where and how you do your shopping
If you are like me, shopping less often can help with staying on track and saving money. I’d also recommend shopping around for the best prices, as the differences can add up significantly. But even if you find great prices, make sure that everything you buy fits in with your budget.
Another great way to keep yourself accountable is to shop online. It is a really good way to manage your budget because you are constantly monitoring your basket with every item that you add. Even better, you can make as many amends to your basket as you like until you are happy with how much are you going to spend.
If you end up making some sweet savings, the question then is what to do with them. Depending on how adventurous you are, you might want to check some of the ISA resources that we have put together:
Or, if you are not sure where to start, why not check out The Motley Fool’s banking and savings tools?
