Food prices are getting out of control. As meats, dairy, and eggs climb to record high prices and over 50 million Americans are now on public food assistance, family budgets are being stretched like never before just to survive.
Yet official statistics say Americans only spend about 11% of their post-tax income on food. I don’t know about you, but food is my family’s biggest monthly expense no matter what percentage of my income it is. I suspect that the same goes for most households reading this.
The causes for higher prices are many: currency inflation, fuel costs, bad weather, commodity speculation, higher demand, etc. I refer to the causes only to illustrate that this trend is very likely to continue. Therefore, it is wise to manage this crucial household expense more closely.
It may seem unusual to view food as an investment or your pantry as a savings account, but that is how you should treat it. The strange thing is, the health and quality aspect of food actually improves when you think of food as “money in the bank”. This concept is proven in the list below.
As mentioned earlier, food is my family’s largest monthly expense even with us doing everything I recommend in this article. But we’ve managed to reduce our food bills significantly while simultaneously building up large reserves and getting healthier by using the techniques outlined here.