Since we were in Waterloo this weekend we didn't have a chance to buy groceries for the week. So today, I made a trip to the grocery store to pick up a few items to get us to the end of the week.
On the walk home, two 20-something women behind me were talking about their shopping habits. One was saying that the nearest discount grocery store to her is a 40-minute trip, while the premium grocery store is much closer.
The short exchange I heard went something like this:
Woman 1: Are there any grocery stores near you?
Woman 2: The NoFrills is like 40 minutes away and I have to lug all my grocery bag on the subway. So I end up just shopping at the Loblaws nearby. I don't really know how much things cost anyway. Like if peppers are $4, I don't know the price difference.
Woman 1: It's just a couple of dollars.
At this point, they turned up the street and I turned down the street. I really love to overhear interesting conversations like this. But at the same time, I just want to jump in.
How Much Money Are You Burning?
In the video below at about [01:35] I talk about how much money you are wasting at the grocery store.
If a bag of avocados is $3.97 at NoFrills (discount grocery store) and it costs $4.97 at Loblaws (premium grocery store), then on just 1 item in your basket you are paying $1 more at Loblaws.
For two people, on average I buy 15-20 items per week. If each item I end up spending $0.50 to $3 more, I could end up spending up to $50 more a week or $2600 a year on groceries.
When Spending Money Becomes Saving Money
What could you do with $2600. That's more than enough for me to buy groceries for another 6 months. Or you could get a fancy SLR camera, or you could pay for a taxi ride down the street to buy your groceries at the discount store and still have plenty left over.
If you can save $50 a week on groceries by going to the discount grocery store, you can justify paying for a $10 taxi ride or even a $20 taxi ride to and from the grocery store to bridge your laziness. Sometimes you have to spend a little to save a lot.
Save Money Retire Early is written by Jon Lo, a barely 30 something Chartered Financial Analyst. I believe anyone can be rich or poor, it's what you save that makes the difference.