We all have to eat. It’s a simple fact of life. I’ve crunched the numbers and I spend about 200 dollars a month on groceries. That’s over 2000 dollars a year. If I could save 6 percent of that I would have over 120 dollars back in my pocket. Now mind you I am a single guy.
I am sure that many families spend 500-700 dollars a month at the Supermarket. Their annual grocery budget is 6000- 8000 dollars! Saving 6% of 8000 dollars is nearly 500 bucks. What could that family do with $500.00? Buy 10 tanks of gas? Go out to a local amusement park for the day? Start or add to a college fund?
As you calculate your own annual grocery budget you may be surprised at how much money you spend there. Making a budget is a very important step towards wealth building. Once you know how much you spend on a particular item or service you can evaluate ways to save, replace, or eliminate excess cost.
Saving 6 percent on your groceries is a great step towards shrinking your annual household budget. This can be done with the American Express Blue Cash Preferred Card.
This card gives you 6% back on groceries, 3% back on gas station and department store purchases and 1% on everything else. It has a 75 dollar annual fee, but it gives you 150 dollars cash back if you spend 1000 dollars in the first three months. You can also earn a 75 dollar referral bonus for each person who gets approved for the card. It’s always important to remember that you have to pay the balance in full every month or the interest charges will quickly erase and saving you would have earned.
I think having specific credit cards for specified budget items is an easy way to track your spending and control cost. This card offers the highest percentage of cash back for groceries of any that I have found and could be very helpful to large families with high grocery bills. Every little bit helps.