The Secret to Saving Money on Groceries
Image source: Franki Chamaki, Unsplash
A Lively Interview with Arthur VanDam
Today, we’re visiting with Arthur VanDam, financial planner, author and publisher of the internationally recognized Budget and GrowRich.com blog and e-newsletter.
He’ll give us the inside scoop on how he came to be a grocery savings pro and the best ways to save big money on groceries, year in, year out.
Arthur, what led you to become a grocery shopping and savings treasure hunter?
Some years back, I discovered that my family’s grocery shopping and food management system was a train wreck. We were wasting boatloads of money in the grocery store every month – probably $50, $100 and maybe even more when you throw in stale takeout food.
On one occasion, my supermarket put mustard and laundry detergent on sale. A big sale, a big discount when you do the math.
Coupons in hand, I just couldn’t resist.
My pride turned to dismay when I returned home to discover two unopened jars of mustard in the pantry and one brand new bottle of detergent in the laundry room.
While these items don’t really spoil any time soon, still a waste of money. Yikes. It was disgraceful.
This was a sign that we needed to clean up our act, get organized and develop a sound grocery shopping and food management system, a process. We could put the money to much better uses.
Arthur, did that waste lead to your ‘Triple Play Grocery Savings System’ that you explain in your new book Save Money on Groceries?
Yes!
I discovered that the secret to cutting your grocery bills and saving money consistently is to create a process. A smart grocery shopping and food management system that fits with Your lifestyle and habits – how you and your family eat and use food and staples.
And follow your system!
You have to get a handle on the food you have on hand, what your family eats and when the food in your refrigerator, cupboards and cabinets will spoil. While you’re at it, you’ll save a lot of money when you figure out which items will spoil before you eat them.
What are the three components of The Triple Play Grocery Savings System?
As I mentioned, the first is create an organized grocery shopping and food management system.
Second, store your food inventory smartly.
And third, use your food and groceries wisely.
That sounds like a 30,000-foot overview.
Yes. The framework or approach is very important because that sets the stage for you. But it’s the details that count – creating a grocery shopping and food management system that works for you and your family. Your ability to save money depends on this.
Oh and the most important ingredient to success is implementing your system and following it. Action and consistency – a process – drives your success – how much money you save.
How did you come up with the idea for The Triple Play Grocery Savings System?
I studied business and completed my MBA. We learned about the manufacturing industry’s ‘Just in Time Inventory’ management technique.
Manufacturers run assembly lines to make products. They keep a certain amount of raw materials inventory and supplies in their warehouses. Manufacturers work with their suppliers and vendors to set a delivery schedule. The purchasing department places orders based on how many days it takes the suppliers and vendors to deliver/ship the manufacturer’s order to the plant. They want the raw materials inventory and supplies to arrive at the manufacturer’s plant ‘just in time’ so the manufacturer can move the items on to the assembly line, immediately upon receipt.
The concept is to order enough raw materials inventory and supplies so the manufacturer can run its assembly line – manufacturing process – efficiently and seamlessly. The manufacturer doesn’t want to run out of materials because that would cause the plant manager to shut down the assembly line. This is exactly what happened during COVID 19 when companies (and consumers) faced a major supply chain disruption.
The purchasing managers organize the purchasing and order process so they can improve their cash flow. By buying only what they need at a particular time (just in time), they defer payment. This extends the time they have to pay for their purchases. This improves the manufacturer’s working capital and profitability.
How can we apply ‘just in time inventory management’ techniques to grocery shopping and food management?
With grocery shopping and food management, by buying only what you need and perhaps a little more, you free up cash.
Let the supermarket or warehouse club hold ‘your’ inventory in their stores. Let them pay the cost of carrying the inventory and bear the risk of spoilage.
More or less, you can buy what you need when you need it. Typically, the supermarkets have an ample supply of the products you want.
And by rotating your food inventory, you reduce spoiled food and waste and save money.
That’s the time-tested recipe to reducing food spoilage and waste and saving money on groceries.
To Learn More Ways to Save Money on Groceries, Every Day – click here.
See you next week.
Arthur VanDam
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