In my last blog entry how to Save Money On Food – Part 1 , I introduced readers to the topic of saving money on food. If you’ve applied the things I listed in my last post, there is no reason why you shouldn’t already be saving money. In this blog entry, I want to continue this topic, because there are many ways in which you can dramatically cut your monthly food costs:

Combine your resources together with roommates to buy food – If you have roommates, it is very likely that you split your rent between them. This is a good strategy which can help you save thousands of dollars a year, but you can also work with your roommates to cut costs on food. For example, instead of buying your food separate, you could go shopping with your roommates, and buy foods which can be shared among all of you. By doing this, you will get more food for less.

This is a strategy that I’ve used with my own roommates. Generally, we will both go to the store together, buy food, and then share it. The only downside to this strategy is that there may be times when your roommates buy things you don’t eat, and vice versa. However, by shopping together, these problems can be dramatically reduced. This one strategy can allow you to save hundreds of dollars per month on food, and thousands of dollars each year. If you use this strategy, it is also important to make sure that you and your roommates are paying a comparable amount of money for food. For example, if you spend $50 while shopping, they should spend approximately the same.

Start buying generic foods rather than brand name – Many people who are broke and in debt have an infatuation with buying brand name foods. They hate buying generic foods, and when you talk to them about it, they will often make lame excuses about how the "brand name foods" taste better. More often than not, this is a fallacy. Generic foods are almost always cheaper than brand name foods, and depending on the brand, you won’t find much of a difference in taste. By switching to mostly generic foods, you can save a fantastic amount of money each month.

When you buy food, always buy in bulk – You will save more money on food when you buy things that can’t be eaten in one sitting. For example, a dozen eggs will last you a lot longer than buying a single tv dinner, and a pack of ham will last a lot longer than buying a single ham sandwich. Smart shoppers always buy things that can be used to make multiple meals. Some examples of this are bread, eggs, beef, butter, peanut butter, jelly, ham, rice, pasta, and cheese. These are the "raw materials" which can be used to make a huge combination of different meals. Buy in bulk as opposed to getting TV dinners, because while they’re convenient to pop in the microwave, they are expensive.

When you combine the strategies mentioned in the last blog entry with those in this entry, you can save thousands of dollars in a single year. Most people spend hundreds of dollars per month on food because they lack discipline. They either like eating out all the time, or they prefer brand name foods over generic ones. If you want to begin building wealth, you need to get a lid on the amounts you’re spending each month on food, because if you don’t, your chances of becoming financially independent are doubtful.

More than likely, the U.S. will enter a recession, and there are some experts who say that we’re already in one. What this means is that food is only going to get more expensive. Inflation, as I will discuss in future blog entries, is increasing, and with it, the cost of food, energy, rent, and a bunch of other things will rise. Only those who are disciplined and financially sound will survive and prosper during these difficult times. To survive, you must spend less and save more. The things that will always eat you alive during a recession are rent/housing, food, and energy.

These are three things that few of us can do without, and it should come as no surprise that they are things which increase most dramatically in price. During inflationary periods, both milk and bread will rise, and this is a sign that you’re living during difficult financial times. While things can be hard for many of us, it is possible to thrive if you’re determined, and willing to make sacrifices. I read a study once which showed that eating out is one of the primary reasons why Americans fail to follow their budget each month.