85% of Millionaires Use This to Save Money on Groceries

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Shopping with a list is part of a millionaire mindset. Find out why many millionaires still watch every cent when they go to the grocery store. 

Groceries account for more than 10% of the average American’s spending, per research by The Ascent. So cutting the amount you spend at the till can be a good way to offset soaring living costs. The good news? There’s one money-saving tool used by wealthy individuals that we can all adopt: shopping with a list.

According to Ramsey Solutions research into habits of millionaires, 57% of them make a list and somewhat stick with it. A further 28% make a list and always stick to it. Just 15% of the millionaires surveyed don’t use a list at all.

Why make a list

How many of us can say we’ve never accidentally bought extras of items we already had at home? Or bought produce that ends up going bad at the back of the fridge? Or splashed out on something we didn’t need or even really want? A shopping list helps avoid all these issues. Plus, it can mean fewer trips to the store, period.

Put simply, supermarkets are designed to encourage you to spend money. From cleverly placed products to carefully curated smells, store managers are experts in getting you to part with your cash. Think of a list as a charm against supermarket wizardry.

Here are some other benefits of shopping lists:

It’s easier to manage your budget: Try estimating the costs of the items on your list. It doesn’t have to be super accurate, but enough to give you a rough idea. If you plan to spend $100 a week on groceries and your list totals over $150, you may need to make some cuts. That’s easier to do before you fill your cart or reach the checkout.You can make better use of apps and coupons: There’s no point collecting coupons if you don’t use them. Order them by date and put them on your shopping list so you buy the right items. Similarly, some cash back apps require you to activate the offer before you reach the store. Once you’ve done that, a list means you won’t forget what you’d planned to buy.It fits well with a meal plan: Whether you love or hate meal planning, it is a good way to save money and reduce food waste. If your household habits don’t fit easily with daily food plans, don’t give up on the idea completely. Stock up on staples and have a flexible schedule that you can adapt to your family’s movements.

These aren’t the only reasons so many millionaires use shopping lists. Shopping with a list is part of a saving mindset — one that cares about where each cent goes and doesn’t want to waste money on unimportant things. Building wealth is about increasing the gap between what we spend and what we earn. If you can consistently cut your grocery costs, you’ll have more money in your bank account for other financial goals.

Other ways to save money on groceries

The trick with any form of cost cutting is to make it sustainable. Drastic cuts often only last a few weeks before people get frustrated and splurge. Instead, look for small changes you can make to your spending habits that might consistently reduce your bills. For example:

Use a grocery credit card: If a large chunk of your money goes toward groceries, look for a card that gives decent rewards on that spending. Bear in mind that there are pros and cons to credit card spending. If you don’t pay off your balance in full each month, the interest payments will likely be more than you earn in rewards.Get an app-etite: There are several apps that can cut your grocery costs. A price comparison app can help you find the best deals. A cash back app can give you money back on your everyday spending. Use it in tandem with credit card rewards to maximize your money back. Finally, anti–food waste apps can connect you with retailers and restaurants that want to sell food before it goes bad.Buy in bulk: If you have a big family and often buy in bulk, the membership fees for warehouse stores like Costco could pay for themselves. Smaller households might be able to team up with friends or family to split the costs and savings. Sharing bulk purchases can also reduce the risk of food going bad before it gets used.Look for discounts: From in-store offers to coupons, the trick is to look for deals on items you normally buy. Watch out for offers on more expensive items such as laundry detergent. That said, don’t let discounts tempt you into impulse purchases. Let’s say you see a bottle of wine that’s reduced from $20 to $15. If you weren’t planning to buy wine, that isn’t a $5 saving — it’s a $15 expense.

Bottom line

Making a list is one of several millionaire habits that are worth adopting. Not only can it save you money, but it reduces your hassle and can save you time. Take a few minutes before you go to the store to map out what you need and what discounts you might be able to take advantage of.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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