The Key Budget Byting Principles (2024)

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Over the past few months I’ve been compiling a list of principles to shop and cook by. I have identified 6 practices that have really helped me take a big “byte” out of my monthly food budget. With a little planning, a little effort and a little compromise you can save a lot of money.

BUDGET BYTING PRINCIPLES

1: PLAN YOUR MEALS

Take the time, once a week, to think about what you want to eat for the next 5-7 days. Decide on a few recipes then make your grocery list. Look in your refrigerator, freezer and cabinets to see what “left over” ingredients you have on hand that need to be used up (if you’re throwing away food, you’re throwing away money). Make a mental (or physical) list of these items, hit the internet and search for recipes that use those ingredients. I also plan my meals around items that I find on sale for really good prices. I usually thumb through the weekly sale fliers (or check them out online) looking for really good deals. Planning ahead will keep you from wandering aimlessly through the store picking up umpteen snack items because you don’t have one real meal idea.

2: USE INGREDIENTS WISELY

One of the reasons that I started Budget Bytes is because I don’t believe that you have to just eat ramen, rice and beans to eat on a budget. I love food and I don’t think that some things are off limit just because they are expensive. Often times, if you have an expensive ingredient you can pair it up with something inexpensive (like rice, pasta or other grains) to bring the cost per serving back down. Also, expensive ingredients are often the most potent so you can use them sparingly and still get a great flavor (think sun dried tomatoes, pesto, walnuts). So, choose your recipes based on the ratio of expensive ingredients verses inexpensive ingredients and use potent/expensive ingredients sparingly.

3: PORTION CONTROL

Portion control will help you slim down your waistline and bulk up your wallet. We’ve gotten used to gigantic sized portions in our country and it’s time to start reining them back in. When you eat more food than you need, you are quite literally spending money that you don’t need to spend. When you dish out a meal, try giving yourself less than you normally would and see how satisfied you are when you have finished. If you are still hungry you can always go back for more but this way you won’t be feel obligated to finish what is on your plate if it is more than what satisfies you. When I make a meal, I try to portion out the entire recipe into smaller containers as soon as it is finished cooking. If I put it all into one big container, every time I go for some I have the possibility of over serving myself. Sounds OCD but it also makes my meals “grab-and-go” which is quite convenient.

4: DON’T BE AFRAID OF LEFTOVERS

After working in the food service industry for a few years, it has come to my attention that many people these days are afraid of food if it was not prepared that day or even a couple of hours prior. What those same people don’t realize is that when they go to a restaurant (almost every restaurant), the food that is served to them was not prepared from scratch that moment. It is more convenient and cost effective for restaurants (and us at home) to make large batches and use them over a period of a few days. If stored properly, cooked food is quite safe and delicious for several days in the refrigerator and a few months in the freezer. For specifics, visit Foodsafety.gov. Sure, sometimes there will be textural changes (fried foods may become soft, for example) but many times the flavor of food gets better after a day or two! The time in the refrigerator allows ingredients to marinate and flavors to marry. In my recipes I try to address issues related to storing leftovers to keep the best flavor and texture.

5: THE FREEZER IS YOUR FRIEND

Take full advantage of your freezer, it will save you money! Last week while grocery shopping, I came across an enormous pork tenderloin on sale for only $4.99 (regularly $8.99). You BET I bought that thing even though it wasn’t on my menu. I knew that it would freeze well and I could simply thaw it out and use it for my entree another week. Also, since I cook primarily for myself, I often freeze extra portions of meals. If I can’t scale down a recipe to a size that I can consume within 5 days or so, I’ll just freeze the rest. It’s wonderful to have frozen meals just waiting for you when you are too tired, too busy or too sick to cook (or if you’re out of money and there is still a whole week till pay day! ha!). For more information on how to effectively freeze different food items, visit The National Center for Home Food Preservation and be sure to click on General Information for food that doesn’t freeze well and other basics.

6: SHOP WISELY

We all have different reasons for shopping where we do (supporting local business, a preference for natural or organic items, location/convenience etc.) but be aware of your options. Check for local or seasonal produce markets and ethnic groceries. Produce markets are almost always less expensive than produce in grocery stores and often times the quality will be much better. Ethnic grocers usually have great prices for ingredients that are not common and offer a wider selection (you might get inspired!). As you become more budget conscious and start to cook more, you’ll begin to make a mental price list of your most commonly purchased items. Soon you’ll be able to spot inflated prices immediately and you’ll know which store offers the best prices for different items. I don’t visit 4 or 5 stores every week but as I’m planning my menu I will plan which store to shop at based on where I can get my most expensive ingredients at the best price. Usually, I go to one grocery store to buy my canned, frozen or otherwise packaged foods and the produce market for fresh produce.

If you have any other tips or practices that have helped you cut your food budget, please share them! A million minds are better than one!

The Key Budget Byting Principles (2024)

FAQs

What is the 50 30 20 budget rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

Is the 50/30/20 rule after taxes? ›

50/30/20 explained. The basic idea of the 50/30/20 rule is simple. You allocate 50% of your post-tax income to “needs” and another 30% to “wants.” That leaves you with at least 20% of your net income that you're able to save or use to pay down existing debt.

What is the 60 20 20 rule? ›

Put 60% of your income towards your needs (including debts), 20% towards your wants, and 20% towards your savings.

What is the 60 30 10 budget rule? ›

The 60/30/10 budgeting method says you should put 60% of your monthly income toward your needs, 30% towards your wants and 10% towards your savings. It's trending as an alternative to the longer-standing 50/30/20 method. Experts warn that putting just 10% of your income into savings may not be enough.

What is the 40 40 20 budget rule? ›

The 40/40/20 rule comes in during the saving phase of his wealth creation formula. Cardone says that from your gross income, 40% should be set aside for taxes, 40% should be saved, and you should live off of the remaining 20%.

What is the 50 30 20 rule of budgeting spending on wants should not exceed? ›

Key Takeaways. The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).

Can you live off $1000 a month after bills? ›

Living on $1,000 per month is a challenge. From the high costs of housing, transportation and food, plus trying to keep your bills to a minimum, it would be difficult for anyone living alone to make this work. But with some creativity, roommates and strategy, you might be able to pull it off.

What is the 75 15 10 rule? ›

In his free webinar last week, Market Briefs CEO Jaspreet Singh alerted me to a variation: the popular 75-15-10 rule. Singh called it leading your money. This iteration calls for you to put 75% of after-tax income to daily expenses, 15% to investing and 10% to savings.

What is one negative thing about the 50/30/20 rule of budgeting? ›

Some Experts Say the 50/30/20 Is Not a Good Rule at All. “This budget is restrictive and does not take into consideration your values, lifestyle and money goals. For example, 50% for needs is not enough for those in high-cost-of-living areas.

What is the 80-20 rule in strategy? ›

The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes. In other words, a small percentage of causes have an outsized effect. This concept is important to understand because it can help you identify which initiatives to prioritize so you can make the most impact.

What is the 80-20 rule strategy? ›

Key Takeaways. The 80-20 rule maintains that 80% of outcomes comes from 20% of causes. The 80-20 rule prioritizes the 20% of factors that will produce the best results. A principle of the 80-20 rule is to identify an entity's best assets and use them efficiently to create maximum value.

How do you do the 80-20 rule? ›

The 80/20 rule is a guide for your everyday diet—eat nutritious foods 80 percent of the time and have a serving of your favorite treat with the other 20 percent. For the “80 percent” part of the plan, focus on drinking lots of water and eating nutritious foods that include: Whole grains. Fruits and vegetables.

What is the 70 20 10 budget rule? ›

The 70-20-10 budget formula divides your after-tax income into three buckets: 70% for living expenses, 20% for savings and debt, and 10% for additional savings and donations. By allocating your available income into these three distinct categories, you can better manage your money on a daily basis.

What is the 70 budget rule? ›

By allocating 70% for what you need, 20% for what you want (either immediate luxuries or future savings goals), and 10% for your goals (like paying off debts and saving or investing in your future), you can work towards a greater sense of financial wellbeing.

What is the 80 budget rule? ›

The rule requires that you divide after-tax income into two categories: savings and everything else. As long as 20% of your income is used to pay yourself first, you're free to spend the remaining 80% on needs and wants. That's it; no expense categories, no tracking your individual dollars.

What is one negative thing about the 50 30 20 rule of budgeting? ›

Some Experts Say the 50/30/20 Is Not a Good Rule at All. “This budget is restrictive and does not take into consideration your values, lifestyle and money goals. For example, 50% for needs is not enough for those in high-cost-of-living areas.

What is the pay yourself first strategy? ›

What is a 'pay yourself first' budget? The "pay yourself first" method has you put a portion of your paycheck into your savings, retirement, emergency or other goal-based savings accounts before you do anything else with it. After a month or two, you likely won't even notice this sum is "gone" from your budget.

What percentage of my income should go to groceries? ›

For a family of four (including two children under age 11) in 2023, your spending on groceries should be around $975 a month. You can also look at your recommended grocery spending based on a percentage of your income. Try and aim to spend no more than 15% of your take home pay on food and groceries.

Does the 50/30/20 rule include 401k? ›

Important reminder: The 50/30/20 budget rule only considers your take-home pay for the month, so anything automatically deducted from your paycheck — like your work health insurance premium or 401k retirement contribution — doesn't count in the equation.

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