How a Stockpile Can Triple Your Grocery Budget Surplus

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Photo courtesy of Irish Typepad

People either think that I’m insane or a genius when they get a glimpse at my stockpile. The ones that ponder the former have no concept of profitable stockpiling is while the latter are privy to one of the biggest financial secrets ever.

When I first began building a stockpile it was because of a post just like this one. Someone, somewhere in bloggy land, explained the concept of buying in advance the things you’d need in the future.

The goal of stockpiling is to buy in advance large quantities of items your family will need when at it’s lowest prices. For example, in June of 2009 I bought 16 bottles of Hunts Tomato Ketchup for .17¢ a bottle. The man in line behind me sarcastically commented “That sure is a lot of ketchup”, to which I replied ‘It sure is’, with an angelic smile. What he didn’t know was that I was on my way to tripling my grocery budget surplus.

After this purchase I went home and figured out how many bottles of ketchup it would take to last me from June 2009 until June 2010. This would be when the best ketchup coupons would begin circulating again and ketchup would hit rock-bottom prices.

Once I figured out how many bottles my family would consume per month I multiplied that by twelve which gave me my stock up number. I headed back to the store and bought 28 more bottles of ketchup. I haven’t bought ketchup since nor had any went to waste. We have even donated some to my church and we still have a surplus. We are in good shape as we near the warmer months when ketchup deals will begin springing up again.

So how much did I spend in total:

  • 44 bottles of ketchup @ $1.29 (Regular Price)
  • 44 bottles at regular price = $56.76
  • Total I paid = $7.48 for 44 bottles (What I Paid)
  • Total saved = $49.28 (What I Saved!)

Now imaging applying that method to other nonperishable items. If you began saving $49.28 a year on just (5) items, you’d create a $246.00 annual surplus in your grocery budget. Now apply the same principle to the items below.

Paid .25¢ box of cereal = $10.25 for 41 boxes

Saved $3.75 a box x 41 boxes = $153.75 in savings

Paid .33¢ per can of veggies or $23.76 for 72 cans

Saved .59¢ a can x 72 cans = saved $42.48 in all by buying when on sale and using coupons

 

Paid $7.89 for 1 Tide laundry detergent, 80 rolls of tissue, 5 dish detergent and  120 cans of soda

Saved close to $200

See how the savings can begin to add up. If you leave those savings in your  budget each month. By the end of the year, you’ll have a nice surplus.

HOW TO BEGIN

Think about how many months worth of supplies to you want to store. This will depend on your purpose for building a stockpile. We maintain a stock pile because:

  1. It saves us money
  2. We are prepared in case we were to ever lose our income for any period of time
  3. We want to be able to give to any family, friends, neighbors if the need arise
  4. We want to be able to donate to our church pantry with overly burdening ourselves

Our stockpile goal is 12 months plus a little extra for charity. Once you know how many months worth of surplus you’d like to accumulate, next make a list of items you want to be in your stockpile.

Now allocate a set amount each month to purchasing stockpile items. This amount cane be as little as $5 a month. With coupon-ing and sale shopping you can add a whole lot to your stockpile with a small amount of cash.

Educate yourself on when and item is a good deal. When you see a good deal, meaning the item is selling at it’s lowest price, It’s time to stock up.

Each week you’ll stock up on a different item. At first you’ll have a lot of one particular item but with time and patience your stockpile will balance out.

Note: Read my post titled Managing Your Stockpile for tips on making sure that nothing goes to waste.

WHEN DOES IT PAY OFF

As your stockpile begins to mature you’ll no longer need to buy the staple items in your pantry. Let’s say for example that you stockpiled for 12 months straight, making sure to rack up on one or two specific items a week. Now after those twelve months you would have most likely accumulated enough basic items to maintain you for the next 10 to 12 months.

Let’s say that the items you’ve accumulated use to cost you $100 or so to purchase month to month, but now that you have your stockpile, you won’t need to purchase them for awhile. The $100 you are now saving will become BUDGET SURPLUS. The $100 a month normally dedicated to shampoo, cereal, rice, etc., has now become your pay off.

But stockpiling doesn’t stop there. In order for this process to continue from year to year you’ll need to make stockpiling a monthly or bi-monthly habit. You’ll need to continue to stockpile sale items that your family uses as they begin to run low.

HOW DOES IT PAY OFF

This decision for my family was the beginning of an ingenious plan that has contributed to us paying of all of our consumer debt. It has not only gotten us closer to being completely debt free but has also given us the ability to GIVE like God wants us to. There have been numerous spiritually benefits, three of which I’ll list below.

God has blessed us with even more compassion for those in need:

1 John 3:17-18 (King James Version)

But whoso hath this world’s good, and seeth his brother have need, and shutteth up his bowels of compassion from him, how dwelleth the love of God in him? My little children, let us not love in word, neither in tongue; but in deed and in truth.

He has blessed us with not only a heart to give but the resources to do it:

Luke 3:11 (King James Version)

He answereth and saith unto them, He that hath two coats, let him impart to him that hath none; and he that hath meat, let him do likewise.

And he has made sure that we all of our needs were met as a result of our trusting his plan:

Proverbs 28:27 (King James Version)

He that giveth unto the poor shall not lack: but he that hideth his eyes shall have many a curse.

Stockpiling will take planning and organization which is a characteristic of the wife described in Proverbs 31:7 “She looketh well to the ways of her household, and eateth not the bread of idleness.”

It will also take wisdom to know when to stock up and when to pass up a deal as mentioned in Proverbs 31:16 “She considereth a field, and buyeth it: with the fruit of her hands she planteth a vineyard.”

And finally, it will take time. You will need to know where the deals are and make a plan to go and get them as stated in Proverbs 31:14 “She is like the merchants’ ships; she bringeth her food from afar.”

I hope that you are encouraged to take your faith and finances to a whole new level this year.

Be Blessed!!