8 Ways To Save Money on Groceries

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There’s a good chance your weekly trip to the grocery store is feeling more expensive than ever — food prices have increased 28% in the last five years!

Inflation and supply chain issues are some of the reasons to blame, and they're putting pressure on all our budgets. 

If you’re looking to cut costs, you may need to start thinking outside the box.

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1. Join a Bulk-Buying Club

Buying groceries at a lower unit price is a good way to save on your annual grocery bill. Joining a bulk-buying program gives you access to higher volumes of food at a lower unit price.

Costco and Sam’s Club are two examples of bulk-buying clubs. An annual membership to Costco is $65 per year and allows you to buy essentials like meat, eggs, and flour in larger quantities.

Take rice as an example. A two-pound bag of rice at my local grocery store costs $3.41 (or $1.70 per pound). At Costco, you can buy a 25-pound bag of rice for $18, which works out to just $0.72 per pound — a 58% savings!

Shop for items you frequently consume, like milk and eggs, or ingredients like rice that you know you’ll use throughout the year. This will help you build a well-stocked pantry while saving on your total grocery bill.

RELATED: What You Can (and Can’t) Return at Costco

2. Share With Friends

While buying in bulk is one of the best ways to reduce your costs, it can be difficult to do if you’re only buying for yourself or you live in a small apartment. 

Instead, consider teaming up with some friends to buy things in larger quantities and split the cost.

You don’t have to necessarily get a Costco membership to buy big. You can also go straight to a butcher or farmer to buy meat in bulk, which can be both cheaper and healthier than from a grocery store.

Here in Texas, a whole cow will cost you around $3,480 and can generate 430 pounds of meat. That’s around $8 per pound and gives you access to premium cuts of meat like steaks. 

If you split the cost with a few friends, you’ll have enough meat to last you a while without breaking the bank.

3. Host a Potluck

Host a potluck with some friends and ask them to bring something to share. Not only is it a fun way to reduce costs, but it’ll also cut back on the amount of time you spend in the kitchen!

Or, take it a step further and turn a potluck into a meal prep party. Ask everyone to bring some containers along with their dish. Allow everyone to fill their containers with delicious leftovers to take home.

RELATED: Money Conversations We Should Be Having

4. Barter With a Farmer

Do you have a skill to offer? Are you handy around the home or good with words? You might not have considered it but you can offer your skill in exchange for produce rather than cash. 

Go to your local farmers' market and talk with vendors. See what their needs are and if they’d be interested in working with you. If you find a taker, consider trading your skills for free or reduced-price fresh produce.

RELATED: How To Start a Side Hustle

5. Get a Freezer

Americans waste 120 billion pounds of food every year. That’s about 40% of the total food supply in the United States!

Food spoilage is one of the main reasons so much food goes to waste. If you don’t have a standalone freezer that’s separate from the one connected to your refrigerator, consider investing in one. 

You can get a compact chest freezer for less than $100. Before something is about to go bad, put it in a bag, label it, and store it in the freezer. 

Not only will you avoid waste, but next time you don’t know what to cook for dinner, you can look in the freezer instead of ordering takeout.  

READ MORE: How to Budget: 5 Simple Steps

6. Cook With More Spices

One of the easiest ways to make food more flavorful is to cook with spices. They’re a healthy, low-cost alternative to the prepared (and potentially pricey) sauces you get at the grocery store.

Stock your pantry with these spices:

• Salt
• Black pepper
• Garlic powder
• Onion powder
• Cumin
• Paprika
• Chili powder
• Oregano
• Basil
• Thyme
• Rosemary
• Cinnamon
• Turmeric
• Ginger
• Nutmeg

You can buy all of these spices for around $75 total and create a variety of dressings, curries, and sauces with them.

READ MORE: 12 Money-Saving Tips to Transform Your Finances in One Year

7. Use a Discounted Food App to Score Deals

Discounted food apps are becoming increasingly popular, especially in bigger cities. These are ways for bakeries and grocery stores to get rid of day-old products without throwing them away.

OLIO and Too Good to Go are two examples of discounted food apps. OLIO allows neighbors to give away unexpired, uneaten food for free while Good to Go partners with local eateries to get rid of uneaten products. 

If you don’t mind eating yesterday’s bread, this can be a good way to access good food while cutting down on your weekly grocery bill.

RELATED: Best Budgeting Apps

8. Use a Cashback Credit Card 

Another way to save on your grocery spending is to use a credit card that offers cashback on supermarket purchases. Many popular credit cards provide 1-5% cashback at grocery stores, which can add up over time.

For example, the Blue Cash Preferred® Card from American Express offers 6% cashback at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). And the Capital One Savor Cash Rewards Credit Card earns an unlimited 3% cashback at grocery stores (excluding superstores like Walmart and Target). 

If you spend $500 per month on groceries, that would save you $180 to $360 per year, depending on the card.

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Just be sure to pay your credit card balance in full each month to avoid interest charges, which would eat into your cashback earnings.

With a little research, you can find a card that matches your spending habits and provides the maximum cashback on your grocery purchases.

COMPARE: Best Cashback Credit Cards

TL;DR: How To Lower Your Grocery Bill

Joining bulk-buying clubs, splitting costs with friends, and using discounted food apps are great ways to save on groceries. Stocking up on versatile spices and minimizing food waste with a freezer can also help cut costs. 

By getting creative with these strategies, you can significantly reduce your grocery bills without major changes to your eating habits.

For more tips on managing your grocery budget (and other bills), check out these episodes of the Erika Taught Me podcast:

• What the Food Companies Don’t Want Us to Know
• How To Budget for Beginners
• How To Become Better With Money

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Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.