Living on Less – Dealing with High Prices

Food prices have gone up and are continuing to go up.  There has been much devoted to this subject on news programs, newspapers and the internet.  The World Bank reported that food prices are 29% higher than a year ago.

Fuel is going up, not only gasoline, but diesel fuel.  Since the majority of our food is delivered by trucks that are powered on diesel fuel, it doesn’t take a rocket scientist to figure out that the prices on commodities will be going up.

Prices have gone up in the past but I feel this time will be different and more significant.  Flooding in the Midwest led to failed crops that led to higher price feed for animals bound for market, which has led to some farmers raising fewer animals meaning fewer animals going to market. The supply will be low, the demand will be high, the cost to produce that meat will be higher along with the additional cost of getting the product to market.  There have been crop failures in Texas, California and Florida.  There has been flooding in Australia, droughts in Russia and crop failures in China.  Add to that the political unrest in the Middle East and Northern Africa along with the economic woes our country faces along with our own personal finance dilemmas and it seems we have a perfect storm that is leading to higher prices from food, to gasoline, to clothing.  Nothing will be exempt it would seem from higher prices.

We are living already in precarious economic times.  Although the Great Recession has been declared over since June 2009, it does not mean that we are out of the woods.  Our economy is fragile.  High prices will create a difficult climate for the consumer, the business owner, well to be honest – it will affect all of us.

Many people would say – well, I’ll just have to pay extra and suck it up.  But let’s look at it from a different point of view – instead of prices increasing by 29%, as an example, let’s say that your net income was reduced by 29%.  Okay – did that get your attention?  Because when prices go up and you have to pay more for everything, in effect you have lost the amount of money you could be putting in savings or paying off debt.

So, if you are still reading this article and not depressed, I want you to know that there is something you can do about food prices.

I have written articles on Oskaloosa News on the Living on Less topic about couponing and saving money on groceries by knowing when a sale is a sale and stocking up on sales items.  Now is the time to re-read those articles and put the advice into practice.   In order to live on less you need to be a knowledgeable consumer.  You need to have a plan.  Just like in the Bible when Joseph stored up in the years of plenty for the years of the lean, now is the time to start to stock up on food on sale and save money.

I know my prices.  I have always had a target sales price for certain items.  Chicken hindquarters is an example.  I buy them when they are on sale at around 40 cents per lb.  Okay, I hear a lot of you – yuck, chicken hindquarters.  But what happens when you take a pair of kitchen scissors and you cut the pieces apart?  You have thighs and drumsticks valued at 99 cents a lb. on sale.  My ground beef sale’s price had been $1.25 lb. but when beef prices rose last year I changed my new target sale price to $1.90 lb.  Any time 85% lean hit that price I bought it.  My target price for 80% was $1.75 lb.

A few weeks ago there was a one day sale on a 5 lb. package of 85% ground beef for $8.95 at a local store.  There was a limit of one package.  I went to the store early in the morning to pick up a package of that meat.  When I reached for the package I looked to my left and saw this sign “73% lean ground beef – 5 lb. package $3.99.”  The sell by date was the next day.

Okay, I rarely buy this higher fat ground beef but for 80 cents a lb., I was going to buy as much as I could.  I purchased 30 lbs. of this meat and I still left packages for other shoppers.  This higher fat meat I use by cooking it up and crumbling it.  I drain it and then rinse it and use it in any recipe that calls for browned hamburger such as sloppy joes, spaghetti, pizza and more.  Be open and buy store brands and make up your meals from items on sale.

Here are the deals on meat that I got at Fareway and Hy-Vee in the past few months.

Name brand spiral ham for 99 cents a lb. – sell by date was 1 week after I purchased it – it went in the freezer for Easter, ground pork – $1.50 lb., ham loaf $1.69 lb., chicken hind quarters .40 lb., 73% ground beef for 80 cents a lb. and deli ham for $1.25 lb.  How did I find these buys?  I walked into the stores and looked for any reduced meat. Most reduced meat is reduced in price due to it coming close to the sell by date.  I don’t care.  I just throw it into my freezer and it is good.  Also, since I know my prices, I glean the grocery ads looking for the deals.

But what do you do with all of these meat sales?  If you have the money, don’t put it on a credit card, buy a freezer.  If you live in an apartment, they sell smaller chest freezers that could fit in a small kitchen.  Over time that purchase will definitely pay for itself with all of the money you will be saving by buying food on sale.

Of course, reducing the amount of meat that you eat is also a great option.  Have one meatless night a week.  One of my favorite meals is a tortilla with beans and cheese heated in the microwave.  I then add salsa and lettuce.

I know I have focused a lot on meat but let’s also consider failed grain crops such as wheat, corn and rice.  These are staple crops and due to these crop failures and the rising cost of food, people around the world will be facing starvation.  So, it’s not just us in our little Oskaloosa, Iowa  that are affected by food costs, it is the entire world.

During the Christmas season I stocked up on flour when it was on sale and I put the bags of flour in my freezer for 24 hours.  This kills any possible bugs.  Then I store it in a Rubbermaid container in my basement.  I do the same thing with corn meal.  If you store things carefully, they will last.

This summer try growing some of your own vegetables.  If you’re like me, and not that great at gardening, grow a few things such as tomatoes or leaf lettuce in containers.  Better yet, go to the local Farmer’s market for your fresh produce.

As for gasoline prices, buy a bike or get some great walking shoes.  Make that tank of gas last as long as possible.  I try very hard to get all of my errands done at once so I don’t waste gas by getting in my car and going whenever I feel I need to.  Plan ahead.

We can no longer live like we have in the past.  It’s time to be grown ups  and save money, reduce debt and save for the future.