How To Save Over £1,000 A Year On Your Food Shop

4 Foolish ways that, together, could add up to £1,165 of savings on your annual food shopping bill!

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

 

According to the ONS, the average weekly food shopping bill in the UK is £96. That’s for a ‘two parent and two child’ family, and includes spending on alcoholic drinks and tobacco.

With the cost-of-living squeeze still ongoing, and wage rises continuing to be behind the rate of inflation, here are four ways that can help you save up to £1,165 per annum on your food shopping bill!

Shop Online

While shopping online can be a little long-winded the first time you use it, as you get used to how it works and need to select all of the items you wish to buy, it can prove highly worthwhile when it comes to saving money.

For example, Sainsbury’s currently has an offer where you can save up to £55 on your first five online shops. It breaks down as £15 off your first online shop, followed by £10 off your next four shops. Furthermore, it includes free delivery, which saves you on petrol or the cost of public transport, too.

Cashback Cards

Despite cashback cards having been around for a number of years, many shoppers still don’t use them. However, they could prove to be highly worthwhile, with American Express paying cashback of 1.25% for all supermarket spending.

This may not sound a lot, but over the course of a year it really adds up. With the weekly shop costing on average £96 per week, this works out at £4992 per year. Saving 1.25% of that amount equates to an annual saving of £62.40, simply by using a different credit card!

Loyalty Cards

As with cashback cards, using loyalty cards can really add up throughout the course of the year. For example, Tesco’s Clubcard scheme sends the user vouchers to use in store, with every £1 spent at Tesco equating to 1 Clubcard point, and every 100 Clubcard points accumulated equating to £1 of vouchers.

This works out as a saving of around 1%, but could be even more if you decide to ‘boost’ your Clubcard points via various deals, such as at restaurants and tourist attractions.

Saving 1% on your annual food shopping bill would equate to savings of £49.92, so seems to be well worth doing!

Compare Prices

Various sites have popped up in recent years that compare the price of your weekly shop at supermarkets in your local area. For example, mysupermarket.co.uk allows you to compare up to 11 supermarkets and states that you can save up to 20% on every shop.

This equates to an annual saving of £998.40 from the average shopping bill of £4992 per annum. And, when added to the £55 discount from shopping online, the £62.40 from using a cashback credit card and the £49.92 from using a loyalty card, amounts to a total annual saving of £1,165.72!

With the cost-of-living squeeze set to continue for a little while yet, such a saving could prove to be most welcome for people across the UK.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens owns shares of Tesco and Sainsbury's. The Motley Fool owns shares of Tesco.

More on Investing Articles

Investing Articles

Everyone’s talking about AI again! Which FTSE 100 shares can I buy for exposure?

Our writer highlights a number of FTSE 100 stocks that offer different ways of investing in the artificial intelligence revolution.

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

3 top US dividend stocks for value investors to consider in 2024

I’m searching far and wide to find the best dividend stocks that money can buy. Do the Americans have more…

Read more »

Investing Articles

1 FTSE dividend stock I’d put 100% of my money into for passive income!

If I could invest in just one stock to generate a regular passive income stream, I'd choose this FTSE 100…

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

Forecasts are down, but I see a bright future for FTSE 100 dividend stocks

Cash forecasts for UK dividend stocks are falling... time to panic! Actually, no. I reckon the future has never looked…

Read more »

Young female analyst working at her desk in the office
Investing Articles

Down 13% in April, AIM stock YouGov now looks like a top-notch bargain

YouGov is an AIM stock that has fallen into potential bargain territory. Its vast quantity of data sets it up…

Read more »

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

Beating the S&P 500? I’d buy this FTSE 250 stock for my Stocks and Shares ISA

Beating the S&P 500's tricky, but Paul Summers is optimistic on this FTSE 250 stock's ability to deliver based on…

Read more »

Passive and Active: text from letters of the wooden alphabet on a green chalk board
Investing Articles

2 spectacular passive income stocks I’d feel confident going all in on

While it's true that diversification is key when it comes to safe and reliable investing, these two passive income stocks…

Read more »

Investing Articles

The easyJet share price is taking off. I think it could soar!

The easyJet share price is having a very good day. Paul Summers takes a look at the latest trading update…

Read more »