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I have written before that I could look at your grocery cart and find money to save and invest. Some people thought I was joking, but I’m not. My point isn’t about groceries, it’s really about finding money to save and invest, even small amounts over time. Groceries are just one example. I suppose I am promoting a bit of frugality and financial discipline in very modest ways.
Initially my conclusion about groceries was based on many hours of observation, but now I’ve done a little research with the help of several AI tools.
A USDA study found that for the average grocery shopper, categories like sweetened beverages, prepared desserts, salty snacks, candy, and sugar collectively account for roughly 22–23% of grocery purchases. That’s nearly a quarter of the cart on items most nutritionists would call non-essential.
The average U.S. household spends about $1,080 per month on groceries (probably more now), though the amount varies a lot by household size, location, and eating habits. For a rough per-person estimate, recent sources put it around $346 to $543 per month.
If I saved just 15% of $400 each month for 35 years at 6% interest, I would have about $70,700. Apply that to a family and it becomes $188,900.
Not much of a retirement nest egg for sure, but meaningful for a retiree now struggling to live solely or mostly on Social Security.
Of course, these are pie in the sky numbers, but the point is, for the vast majority of Americans saving is possible.
To me it boils down to the famous quote attributed to Henry Ford. “Whether you think you can, or you think you can’t—you’re right.”
A friend of mine owns a small chain of convenience stores, which gives me occasional access to a perk I probably shouldn’t admit to, borrowing his trade card to visit a cash and carry. These wholesale warehouses are strictly retailer-only in the UK, so it’s not exactly above board, but the savings are hard to resist.
My garage tells the whole story. Walk in and you’d be forgiven for thinking you’d stumbled into a stockroom. Toilet roll and kitchen towel are stacked in bales six feet high, and I have enough laundry detergent and dishwasher tablets to see me through the next year at least. The rule is simple: if it’s non-perishable and the price is compelling, I buy for the year rather than the week. I apply the same logic at supermarkets too — a deep enough discount and I’m loading the cart.
My Kroger receipt tells me that I have saved $489.53 through the end of May, by using digital coupons and buying sale items not requiring coupons. Add to that number, savings when using store brands (that have proven to be comparable to name brands). That’s at least $100/month left in the checking account that I can use for things I enjoy more.
I could save more if I ran from store to store, strategically buying those loss leader items, but I have better things to do with my time. Aldi’s would save even more, but I don’t really care for the Aldi experience.
But the key is also what you bought with those coupons, right?
Not sure if this answers your comment. I don’t let coupons trick me into buying something I do not ordinarily use. Chrissy gives me a little good-natured grief because, when shopping alone, I never come home with something not on the grocery list. I think it’s important to shop with a list, not only to remember all that you need, but also to not buy anything you don’t.
My dad used to do all the grocery shopping; I’m afraid I picked up my miserly habits from dear old dad.
Does that mean I shouldn’t have bought two 17.6oz bars of chocolate at Trader Joe’s last weekend?
I don’t spend much on eating out, but when it comes to chocolate, I tend to splurge. Every time I go to Ireland I come back with a carry-on filled with chocolate – it usually weighs 35-40lbs. It’s a good thing they’ve never weighed it 🙂
Our household (of three) spends roughly $700 a month on groceries.
Does that mean I shouldn’t have bought two 17.6oz bars of chocolate at Trader Joe’s last weekend?
No way, David, you should absolutely buy those chocolate bars! “I’d rather die while I’m living, than live while I’m dead,” (Jimmy Buffett).
I guess that depends on what your IRA or 401k looks like😎
Thanks for doing the math on this, Dick, groceries are going up every month. I recently checked the USDA cost of food chart for our family age and size. We are still doing ok, but I feel things took a big jump in April and May. We try to strategically buy ahead, but in reasonable quantities. Not able to do as much of that b/c a lot of times we need the $$ for other things on the list. Idk if our other HD friends are seeing the same or not. We haven’t had to raise our grocery budget yet, but thinking about it. Chris
I splurge for a particular brand of cherry tomatoes, which taste the way that I remember when I was a kid. Last week they were $10 for the larger package. OUCH. I’m told it’s a combination of transportation costs and tariffs.