Make a Plan

Don’t just head over to Costco and throw the largest items you can find into your cart! You have to have a plan. A plan will ensure you get the best deal, not blowing your budget, and save you from throwing away hundreds of dollars worth of expired items.

Budget

Plan to put aside a portion of your grocery and household goods budget monthly. For our family, this is about 20-25%. You won’t need to shop in bulk every month, but you also don’t want shopping in bulk to be an added expense when it should be helping to lower your overall expenses. Pick up a budget template today and see where all your money goes.

Stick to the budget. You don’t need to buy every bulk item all at once. As you run out of goods, prioritize them on your bulk shopping budget. Spread your expenses out to fit your budget and also help ensure you don’t have all your goods set to expire at the same time.

Don’t buy too much

Just because they sell it in bulk doesn’t mean you should buy it in bulk. There are three common sulk shopping traps.

1. Fresh Food
   1. No matter how good the price, it is going to be rare that you have the storage method, space, or appetite to really capitalize on the savings of fresh produce or meat. Read on for tips to make that assessment for yourself.
2. Food You Don’t Eat or Don’t Eat Enough Of
   1. You probably don’t need five dozen eggs for your family of three or the 50lb bag of peanuts when you have an allergy. Again, a good deal is not a good deal for all.
3. Overestimating how much you need.
   1. We do not waste food here at Habitual Heart. Not only would you be wasting food and the cost associated if you overbuy, but you’re also letting that food take up valuable real estate in your pantry and mind. Don’t underestimate that cost. If a deal is too good, but the quantity is too much, reach out to a friend or family member to see if they will split the haul.

Know how to store your bulk buys

Two keys to being able to buy in bulk are knowing how to store items properly as well as having the space to store them correctly.

Let’s take meat, for example. Meat is highly perishable and is primarily stored in limited quantities because of limited cold storage. In the refrigerator, you are looking at a week, and the deep freezer will get you 4-12 months. Also, keep in mind that this storage is not free. There is a real cost to running large appliances like these. There are options to can, dehydrate, or freeze-dry certain meats, but this requires skills, time, and equipment. Keep this in mind as you make your purchases, and do not buy what you do not have the space or skills to store.

Taking the extra steps to ensure proper storage means less food loss or waste. A good example here is flour. My family of three uses about five pounds of flour a month, but I bulk buy it in two 10-pound bags. If I were to leave it in the original packaging, I’m risking pest infestation and exposure to air and moisture(=spoilage). Within a few days of purchase, I refill the airtight container in my pantry and divide the rest into Mylar bags. Both my pantry container and the Mylar bags perfectly fit five pounds so working my way through the flour without running a high risk of food loss is easy.

Storing dry goods in Mylar also extends the shelf life. Flour can last 10-15 years, well past the best-by dates on original packaging (Who decided that a paper bag was good enough for storing flour?…sus if you ask me). This extra step reduces the risk of food waste and loss but also sets our home up for emergency preparedness in that we have extra, shelf-stable food on hand in sufficient quantities for something unexpected. 

There are tons of products out there that help store food for longer, from simple methods like airtight containers and Mylar bags to canning, dehydrating, freezing, and freeze-drying. Each takes its own mastery and cost investment. I will go into this further in another article but just know these products and skills can significantly increase the shelf life of most foods and therefore make bulk purchases even more cost-effective. 

How to get a good deal

Now that you have navigated the pitfalls of buying in bulk let’s make sure you get a good deal. If you learn nothing else from this article, please learn how to compare costs properly. Sticker price alone is not the way to go. You need to be looking at COST PER UNIT.

You probably already do this in reverse when you shop for meat. You take a look at two packages of chicken breast, and you see that one is $7.43 and one is $6.89. If you compare by price, you might think that the less expensive one is the better deal when, in fact, they are priced at $3.99 per pound and the exact same deal.

Most stores make this easy if you take the time to look at the price tag on the shelf. Get in close and look at the unit cost and compare. Also, ensure the units are the same, ounces to ounces, pounds to pounds, packages to packages, etc. If the cost per unit is not displayed, whip out your calculator and divide the price of the item by the units measured, which should be on the front packaging or on the nutritional label. The more you practice price comparison, the quicker you will be able to find good deals. I personally don’t buy canned tomatoes unless it is better than $.68 a can in my area.

Here is a quick list of categories where you can usually find the best bulk shopping deals.

Grocery

• Cereal
• Oatmeal
• Canned vegetables and fruit
• Soup
• Rice, grains, and pasta
• Beans (canned and dried)
• Frozen food (veggies, fruit, meat, prepared foods) *limited by storage space
• Crackers, cookies, chips
• Nuts
• Sweeteners (Sugar, Honey, Maple)
• Flours
• Spices and extracts
• Coffee & Tea

Household Consumables

• Toilet paper (not shown to have significant savings)
• Paper goods (Paper towels, napkins, paper plates, and bowls)
• Coffee filters
• Laundry or dish detergent
• Cleaning supplies
• Sponges
• Trash bags
• Foil, plastic wrap, parchment paper, plastic storage bags
• Lightbulbs
• Batteries
• Tape

Beauty and Self-Care Products

• Soap
• Shampoo & conditioner
• Lotion
• Toothpaste, toothbrushes, and floss
• Cotton balls, rounds, or swabs
• Contraception (check expiration dates)
• Feminine hygiene Items
• Pain medicine
• Vitamins (check shelf life)
• Over-the-counter allergy medicine
• Bandaids and wound care
• Hand sanitizer or Rubbing alcohol
• Antibacterial wipes

Baby Goods

• Baby food and snacks
• Baby formula (dry is best)
• Powdered Milk
• Baby wipes
• Diapers

Pet Products

• Pet food
• Dog waste bags
• Cat litter

The sad truth is that many of us are just one small accident away from going into debt. In fact, according to a CNBC survey done in January 2020, 41% of Americans couldn’t cover a $1,000 emergency. Don’t get me wrong, there is such a thing as good debt or debt that is working for you, but overall, debt means you couldn’t afford something and now someone else is going to make sure you pay them first. It’s your life, you should be paid first.

Why Should I Have an Emergency Fund?

There are lots of reasons to have an emergency fund. Maybe you have a medical emergency, or a storm tosses a tree into your car, or there’s a Worldwide pandemic and you lose your job. Really, anything is possible. Having an emergency fund is your insurance policy for your goals and dreams to not be derailed because of something out of your control.

How Much Should Be in an Emergency Fund?

3 to 6 Months of Expenses

There are a lot of different perspectives on how much you should have in your emergency fund. Opinions and ability are influenced by competing factors. For example, if you are a recent graduate, you might have another obligation of student loans. If you live at home, you might be saving more money, and meeting a savings goal for an emergency fund while paying off student loans is totally possible. You might be that same student, but this time, you’re braving the “real world” and you might have rent and utilities on top of our student loan making additional savings difficult.

One popular financial influencer, Dave Ramsay, says to start with a $1,000 emergency fund. I think just starting an emergency fund sets you on the right path, but let’s be honest, when it rains, it pours. Your $1,000 might not get you very far. 3-months worth of expenses is the average answer you will find, with it creeping up to six months to be more cautious. With what emergencies I have seen in my 31 years, I’m in the 6-month+ group.

How to Calculate Your Emergency Fund

Emergency funds are calculated from your monthly needed expenses. It is called an emergency fund because it will only cover emergency items like shelter, food, and transportation. It is not meant to cover vacations and splurges. If you want it to cover all of that, change your calculation to be based on total monthly expenses. This is why you need a budget! Grab this template I made to quickly categorize between needs and wants.

Monthly Needed Expenses X #of Months = Emergency Fund Goal

How to Start Saving For An Emergency Fund

The best way to start saving is to just start. Anything you can put aside is more than nothing. It’s a big goal, so don’t get discouraged, but it is one of the most important things you will save for so give it some priority. If you have other savings goals like a vacation or new TV, I would recommend you put those on hold to give your full attention to an emergency fund. You might also come across an emergency while you are still building your emergency fund. That is what it is for! Thank yourself for what you were able to put away for this emergency and keep on going. It’s not fun to think you can’t go on vacation or splurge on a new fall wardrobe right now, but when you have an emergency fund that saves you from having to cancel a trip or one that gives you peace of mind when your company goes through layoffs it’s going to be incredibly worth it.

If you want to learn more about how to not have expenses creep up on you, read this article about sinking funds.