Posted by Lending Club :: March 20, 2008 @ 2:00 pm

Grocery shopping is as inevitable as death and taxes, and at the rate Americans consume, grocery bills have become a big chunk of people’s monthly expenses.

But they don’t have to be.

Sure, there is no getting around the cost of milk or meat, but there are still several smart ways to save at the checkout counter. The following five tips should make a difference on mounting grocery costs.

1. Use coupons

One of the best ways to cut costs at the supermarket is to use coupons. Companies encourage shoppers to purchase their products by granting a discount on the price, hoping that buyers will keep coming back for more. The idea works out great for both parties: consumers save money and manufacturers get business.

A wise shopper would take full advantage of coupons and all they have to offer. Discounts might seem like only a handful of cents for each product, but the total savings adds up very fast. Taking 35 cents off of one item appears moot, but doing the same with 12 products will save you over four dollars.

The best place to hunt for great coupons is in the Sunday paper. Often times there are two or three books of coupons with products ranging from cleaning supplies to dog treats…and everything in between. Big supermarket chains often have their own store-specific coupons for an added savings.

Also, keep an eye out for coupons in the mail. Some stores prefer weekly mailers that feature deals and savings for the next week.

2. Make a list

A simple way to cut down on grocery bills is to make a shopping list. It is surprising how much extra money is spent on items that aren’t needed, and having a list can help keep your spending in check.

Wandering around the store and trying to remember what is running low in the pantry is a recipe for disaster. If you see something interesting that catches your eye, chances are good that you will purchase it, even though you might already have plenty at home. More likely, you will see something you want and have no problems rationalizing the purchase since there is no list around to tell you otherwise.

The list will solve a lot of shopping problems, and it will help make your trip to the store more efficient and quick. Knowing what you need from the moment you step through the doors, you can breeze through the store in much less time than if you were wandering back and forth trying to remember what you needed.

A list will cut down on impulse buys, slow frivolous spending, and curb unnecessary purchases. The result should be more money left in your pocket to invest in person-to-person loans on Lending Club.

3. Snoop for sales

Armed with coupons and a shopping list, you already have a leg up in the grocery game. Keeping an eye out for better deals will give you an even bigger advantage.

When shopping for a general item like soup or juice, there are a myriad of options to choose from. Products like these offer an ideal chance to put sale-sleuthing skills to great use. Grocery stores almost always have a sale on one particular item in a general category. If there are 10 soup brands to choose from, chances are good that one or two will be marked down from week to week.

Several stores stock advertisements near the entrance for customers to use as they shop, and every week, there are great deals on a wide variety of products. Also, many supermarkets display big discounted items at the end of aisles, and the stores highlight discounted products on the shelves with bright, bold labels.

4. Buy in bulk

Warehouse stores like Costco are a blessing for grocery shoppers. These places can offer lower prices on bigger quantities, resulting in great business for the store and great savings for the consumer.

If there is an item that you use often, purchasing it in bulk could save a lot of money. The price of smaller quantities at the supermarket would eventually far exceed the one-time sum of the bulk item. Provided the product won’t spoil or go bad before you have a chance to use it, bulk purchasing is a wise investment.

5. Buy generic

In most cases, the only difference between buying name brand goods and purchasing generic ones is in the price, and that price can often be a big difference.

Many people buy the brand-name items because they feel safe and secure with a recognizable product. There is a track record and a proven quality with brand names; the only thing guaranteed with generic is a lower price tag.

But assuming that there is a great divide between the two products would be a shopping mistake. In many cases, consumers would not be able to tell the difference between the expensive, well-known product and the cheaper, ignominious won. They would taste the same or feel the same or provide the same service—all at a lesser price.

Take the example of soda pop. Two of the most popular brands are Pepsi and Coke. Each is easily recognizable and has stood the test of time. But Coke and Pepsi aren’t cheap. A six-pack will often cost three dollars or more, which will add up sooner than you think.

A more cost-effective option would be to purchase a generic cola, which many stores offer at significantly lower prices. The taste will be virtually the same as the more expensive beverage, but the price is much lower. A Coke 12-pack at Safeway is $5.50; a 12-pack of generic Safeway cola is $2.25. The same is true of virtually any carbonated beverage, since most supermarkets stock their own generic brand at a much lower price.

For those who are picky about their tastes, going with name brand products is understandable. But with the bevy of generic options, it would be imprudent not to search for some item that could be replaced by a cheaper alternative. Just compare ingredients and make the best choice for your budget and your palate.