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Grocery Budget Australia: How Much to Spend and How to Stick to It

Groceries are the biggest flexible cost in most Australian households. Unlike rent, you can change it this week. The trick is to set a number based on what you actually spend, not a figure from the internet, and then plan meals around your pay cycle so you're not doing a panic shop on day 13 of the fortnight.

Find your real grocery number first

Go through the last four to six weeks of bank transactions and add up every supermarket, butcher, bakery and convenience-store purchase. Don't forget top-up shops and petrol-station milk runs. Divide by the number of fortnights. That is your honest starting point. Many people are surprised by how much the small top-up shops add.

Set a target that's realistic

Aim to trim 10 to 15 percent off your real number at first, not half. A target you can hit is better than a strict one you give up on by week two. Once you hit it for two fortnights, trim a little more.

Plan by the fortnight, shop by the week

If you're paid fortnightly, plan meals for 14 days but shop in two halves. Buy pantry items and meat for freezing in the first shop, and fresh fruit, veg and bread in the second. This keeps fresh food from going off and stops the second week running short.

Proven ways to lower the bill

• Write the list from your meal plan, then shop the list.
• Compare unit prices on the shelf tag (per 100g or per kg), not the pack price.
• Try one Aldi shop a fortnight if there's one near you, and compare totals.
• Cook once, eat twice: double recipes and freeze portions for lunches.
• Use "use it up" nights to clear the fridge before the next shop.
• Shop online with a fixed list if you're prone to impulse buys in-store.
• Check half-price specials in the weekly catalogues for staples you already use, rather than buying things just because they're on special.

What to include in the grocery line

Decide up front whether cleaning products, toiletries, pet food and alcohol sit inside the grocery budget or in their own lines. Either works. What matters is that it's consistent, so you can compare one fortnight with the next.

Worked example

Here's a worked example. Sarah's household is two adults and two primary-school kids, paid fortnightly. Her bank statements for the last six weeks show $1,140 at supermarkets, plus $160 in top-up shops she'd forgotten about. That's $1,300 over three fortnights, or about $433 a fortnight. She sets a first target of $380. Each payday she plans ten dinners, two leftover nights and two 'use it up' nights, writes a list from the plan and does one big shop plus a small fresh top-up. She swaps two meat dinners for lentil and veggie meals, and buys the cheaper brand of three staples after comparing unit prices. After two fortnights she's averaging $372, so she sets $360 as her next target. That's more than $1,800 a year back in the budget, without anyone feeling short of food. Your numbers will differ, but the steps are the same.

How to do it: step by step

1. Total your last 4 to 6 weeks of food and supermarket spending from your bank statements.
2. Divide by fortnights to get your real grocery number.
3. Set a target 10 to 15% lower.
4. Plan 14 days of meals, write the list from the plan, and split it into two shops.
5. Record each shop against the target and adjust next fortnight's plan.

Frequently asked questions

General information only, not financial or tax advice.