Figuring out how to effectively budget for those everyday expenses can be a challenge.
This is true at any stage of life, but it can become much more precise when on a fixed income.
For most, it’s about finding a balance between needs and wants to live comfortably while having the ability to save a little for those special occasions.
“Tracking your spending is important of any budget, but it’s especially important if you’re living on a fixed income to make sure you don’t overspend in one area and end up having to do without,” Michelle Lambright Black, founder of creditwriter.com told The Atlanta Journal-Constitution.
Creating a solid budget is often about assigning percentages to certain areas of spending.
“Most experts recommend that individuals spend approximately 10-15% of their monthly budget on food, both dining out and from the grocery,” Judy Herbst, executive director of Savvy Ladies, and Julia S. Lilly, MBA, CFP, ABFP, a Savvy Ladies helpline volunteer, told the AJC in a joint email.
Savvy Ladies is a nonprofit that gives women the education tools and personalized financial guidance they need to enhance their financial well-being while reducing facial anxiety.
Approach budgeting with patience as this is the first step to shopping smart. Next, you can decide on what particular shopping strategies will work best for you.
“Smart shopping habits have the potential to stretch your dollars farther,” Black said.
When looking at nonperishable items, Herbst and Lilly suggest heading to your nearest bulk store. While this strategy requires a little extra planning, it’s a great way to get a better deal.
“It can be very cost-effective to stock up on canned foods, dry bulk goods, and toiletries from the big box stores,” Herbst and Lilly said.
Black also suggests heading to a discount grocery store to check prices.
“Discount grocery stores can offer big savings on produce and nonbrand name products,” Black said.
Before heading to any store, though, it’s important to make a list.
“Plan for your purchases and avoid impulse buying as often as possible,” Herbst and Lilly said.
Having a list also makes it easier to use coupons. Align what you need with the brands offering coupons to help plan your spending.
“Avoid the trap of buying unnecessary items due to the presence of a coupon. A good deal doesn’t necessarily mean you should buy something you aren’t in the market for,” Herbst and Lilly said.
Pamela, from Toco Hills, who’s in her sixties, uses a grocery store app to keep coupons close at hand. The app notifies her when new coupons are available, and tracks what she buys, so these coupons are targeted to her. She also utilizes the QR codes on the shelves in the store that link back to the digital coupons for even more savings.
“The app is something you have to explore and get comfortable with, and if you’re not tech savvy, it’s worthwhile to ask a friend or family member who uses it already to do a little training with you,” Pamela told the AJC.
When coupons aren’t available, there are other tricks that can save you money and help you avoid food waste.
“Ask the fish and meat people to cut you a piece of whatever you want to the size you’ll eat. Avoid buying prepackaged meat or fish fillets which typically feed a family of four,” Herbst and Lilly said. “If you’re eating for just one or two, buying that portion size can keep the price way down.”
You can also keep an eye out for when certain house items, like laundry detergent, go on sale even if you don’t need that item right away. Avoiding having to pay full price for any necessary item — that won’t go bad — is yet another great way to save.
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