Curious minds want to know! How much is your grocery budget? What does that have to cover?
I have gotten a few people over the past few months asking me these questions. So it is time to explain how we do it in our household. Our food budget is the 3rd largest line in our overall budget with school and property taxes being the largest and medical being the 2nd largest.
Hubby and I agreed upon a grocery budget of $500. per month effective January of 2020. There is just the two of us. Once in while we have company for dinner but that has only been family this year. Our son and grandson eat Sunday morning breakfast with us many times during the year. Our family in Albany visits a few times during the year. We also get take out and go out to dinner in a normal year a few times. It has not been very often this year and has been infrequent takeout.
So at the end of December when our entire budget was set in motion for 2020, $6,000., which is the yearly amount, was put into our grocery account. Then when Covid19 happened and prices started to rise, we put an additional $1200.(1/2 of our stimulus deposit amount) into that account. So essentially, I had $7200. for groceries for all of 2020.
That $ 7200. has to cover all food including eating out and any takeout. The other items that it has to cover is household items like cleaners and soaps, personal care items like shampoo, deodorants, shaving cream, razors, toothpaste, floss and mouthwash, etc. It also needs to cover any medical items like bandaids, neosporin, and OTC medicines. Prescriptions drugs is a different budget.
The large stockups I do are included. For example, my stockpiling for winter has to be within this budget and any stocking that I do at Thanksgiving and Christmas sales also has to be within this budget.
So far it is working this year. But I have to admit, prices have risen and if I didn’t have full freezers and pantries to begin the year with, I think we might have had to raise the budget.
If you have noticed, I have not spent a lot on groceries the past few months. That is because I am keeping money in the account to be able to buy the rock bottom priced items that we see at Thanksgiving sales.
But since Hubby and I are starting to make our 2021 overall budget, I am really thinking that we need to raise the grocery budget. By how much, I have not determined yet. I did some research online and have seen figures of $ 593. per month up to $700. for the two of us.
At this point, I don’t know what we will be comfortable with. That is still a work in progress. It will also depend on how much meat prices rise by the end of the year and how much the food shortages in China and Australia affect our prices here.
I hope I have answered your questions. Now, since curious minds want to know, how much is your food budget this year? Are you going to raise it for 2021? How many people are you feeding and do you include household, personal care, and OTC medical items?
Please leave a comment and share the answers with us. I am curious and I am sure other people are too.