If you have been to the grocery store lately I am sure you have noticed the price increases in almost every product…or have you? Most people, and I am certainly included in this assumption, head off to the market with no clear cut plan in place. Maybe you are in need of a couple items or maybe you are completing your weekly shopping.

Whatever the reason may be you are probably guilty of one of the three types of shoppers: 1) you shop in search of name brand items only without even looking at the competitor’s prices, or 2) you scan the prices of items quickly and then usually decide on your favorite even if it is a little bit higher in price than the others, or 3) you are a complete coupon systematic shopper- kudos to you.

According to the Consumer Price Index Survey released by the U.S. Department of Labor on Thursday,
Aug 14th, 2008 http://www.bls.gov/cpi/:

Five of the six major grocery store food group indexes increased at least 1.0 percent in July.
The index for cereal and bakery products increased 1.8 percent in July and is 12.1 percent higher
than in July 2007, while the fruits and vegetables index rose 1.2 percent in July and is 10.1
percent higher than a year ago.  Within the fruits and vegetables group and the fresh fruits
index was virtually unchanged in July, while the index for fresh vegetables rose 2.9 percent.
The index for meats, poultry, fish, and eggs rose 1.0 percent in July after a 0.8 percent increase
in June.  The index for dairy and related products increased 1.6 percent in July, with the index
for milk increasing 4.3 percent.

The bottom line is that these prices will only continue to soar with inflation as the main culprit. In response to the seemingly never ending rise in food prices I set out on a project to see if I could reform my shopping mentality, save money, and become more diligent week to week. I turned my project into a contest or challenge for myself since I am highly competitive. If I could accomplish my mission and meet my goals of becoming a reformed shopper I promised myself a reward- a nice spa treatment for some relaxation.

Below are the 6 steps I took in my Grocery Store Challenge:

1. Add up all your grocery receipts from the prior month. It is important to a) realize just how much you are spending at the store and how often, and b) get a set point for your new budget.

2. Set a budget below your set point and stick with it for one month! (For instance I had been spending $110 a week on average. My goal was to spend $80 per week consistently).

3. Always, Always, Always make a list. I created a list that was simple to read and helped me stay on track at the supermarket. I always bring a pen to cross off the items once they are in my cart. Here is how I broke my list down:

Meats Dairy Fruits Veggies Other

Meals Planned for the week:

M-

T-

W-

T-

F-

S-

S-

4. Clean out your pantry and make a master list of items. The easiest way to save money is to simply use up what you have in your pantry. Challenge yourself to come up with recipes that use what you already have. A simple way to do this is to go to www.foodnetwork.com, and do a search based on a single item i.e. pasta.

5. Avoid the name brand lure. Just because it is a name brand does not mean that it is any better than its generic competitor. My husband always insists on buying name brand mouth wash. Why? Is it any better? Aren’t you just going to gargle it and then spit it out? Recognize your desire to purchase name brands and start to break the habit one product at a time.

6. Have fun with it! Once you make a task like grocery shopping into a chore the desire to have fun with it is thrown out the window. Create a challenge for yourself, write out your rules and go for it!

The results of my challenge were staggering. I am defiantly more focused at the grocery store and have been able to stay on track. Here are my results:

By reducing my average $110 a week to $80 per week I will save…drum roll please…$1560.00 per year!!

I always preach that it is not enough just to save the money. You must use the savings in a smart financial fashion. The savings can 1) pay for my husband and my life insurance policies, 2) pay for our car insurance for one year, or 3) pay for our annual vacation air fare and car rental. Just think what an extra $1500 would mean to you.

If you decide to take part in this challenge please let me know your results, or if you come up with your own rules please share them with me.

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