Fighting Food Inflation
Welcome to Saving Money with Andrew!
Several respondents to last week’s anonymous reader poll flagged the rising cost of food as an area where they’re trying to economize. It’s true—food inflation has been substantial this year, with prices up 13.5% on average and certain items increasing far more.
We’ve taken several steps to limit our grocery spend, including:
Embrace Store Brands
I’ve evangelized for store brands since the early days of SMwA. These are often far cheaper than the branded product, and are usually comparable quality (they often come from the same manufacturer). We have ruthlessly cut out almost every name brand from our shopping cart and have noticed no decrease in quality for most items.
Steer Toward Lower-Priced Retailers
Trader Joes and Aldi are legendary for their low prices and thin margins (and embrace of store brands). Historically, we bought from a single delivery service (FreshDirect, popular in the New York area) for convenience, but have increasingly found that their prices are simply uncompetitive. As a result, we’ve cut our purchases there by more than half.
Amazon Can Be A Good Option!
I’ve written at length about Saving Money at Amazon, and I’ve found Amazon Fresh very competitive. They charge no delivery fee and have good basic selections, including many Amazon-branded food items at significant discounts. Using Amazon Fresh also lets us use our Amazon Prime Rewards Visa (5% cashback at Amazon) and to shop through Amazon Smile (another 0.5% for our favorite charity).[1]
Similarly, we often buy non-perishable items from Amazon (such as granola bars or cereal) to be shipped to us, which often lets us purchase in bulk at a significant discount and to opt for slower delivery, sometimes netting us a $1 digital credit.
Focus on Cost per Volume/Weight
The cost of the same product can vary significantly based on size. Here’s one example:
We love Ritz. I have a daily Ritz habit, as does my older son. With Amazon, it’s easy to see that buying in volume is a huge savings, at $0.20/ounce for the six-pack on the right versus $0.27-0.52 for the various smaller volume options. The same is true of several other of our household favorites. Amazon is good about showing price per unit, as are some others.
Finally, A Note on Costco
To my great shame, I have never been inside a Costco. I’m not a member and the nearest location is a fairly long drive. My wife and I also both work full time with two young children, and like many SMwA readers we just don’t have the time and foresight required to strategize a weekly Costco trip. But Costco has a terrific reputation, and many people I know swear by it, so it’s likely worth investigating if it’s a feasible option for you.
I hope you find these tips helpful! If you have any other great tips for saving money on groceries, please send me an email or reply in the comments.
And now, Andrew’s pick(s) of the week:
I Was A Teenage Smuggler was an important segment from last week’s This American Life. “Because the U.S. doesn’t usually prosecute anyone under 18 for the crime of smuggling people illegally across the border from Mexico, tons of teenagers do it, for money.”
Also:
Whatever Happened to the Starter Home? From the article:
New York City’s Empty Offices Reveal a Global Property Dilemma
Many people wonder whether office buildings made empty from the shift to remote and hybrid work can be repurposed as residences. The author of this terrific article actually brought in an architectural firm to study two prime candidates in depth.
The New Rate Shock Will Quickly Slam Millions of UK Homeowners
Unlike in the US, where most homeowners have 30-year fixed mortgages which insulate them from changes in rates, “The vast majority of fixed rate mortgages [in the UK] are either two or five years”
And on a much lighter note, Trombone Champ Makes a Hit Video Game of an Unlikely Instrument. Step aside, Guitar Hero and Rock Band!
I hope this has been helpful. If you liked it, please share it on social media! Also, please send me your feedback, requests, and success stories. And please consider completing the brief and anonymous reader poll!
Finally, a quick note: one respondent to last week’s poll mentioned they were trying to email me with no response. If that’s you, please try replying to this email, or posting in the comments, and I will try to get back to you.
[1] By contrast, buying from Whole Foods on Amazon is usually not a great deal, especially with Amazon charging a $9.99 per order service fee for delivery from Whole Foods.