1. INVENTORY your assets.

This is the killer for most of us, (oh, all right... ALL of us) but it really does pay off. IN ECONOMIC EMERGENCIES, THIS STEP IS CRITICAL. If you keep your price book in a loose-leaf notebook, add sections there. Some people use two clipboards: one at the freezer, one in whatever serves as your pantry. List everything you have on hand: every can, package, box and item, making categories in whatever way makes sense to you. List the item, its size and the number on hand. Bribe yourself if necessary, but take this step if money is really tight or you really want to meet a financial goal.

2. Make a MEAL PLAN for one week, using what’s on hand.

Think in terms of economical, nutritious and filling meals built around cereals, casseroles, soups and stews. List at least the main dish for each meal, keeping all the food groups in mind.

If you need help: Look in the white pages for your local extension service, listed under your state university. (Meal planning and food conservation are specialties for them). Visit your local library. Do a Web search. Call the American Dietetic Association Consumer Nutrition Hotline at 1-800-366-1655 (M - F, 9 - 4 Central time) to question a registered dietitian.

3. Start a SHOPPING LIST

Note whatever ingredients you need to add to make complete meals. For example, you have dried beans, some ground meat and spices. You could make a big pot of chili if you had some tomato sauce, so list that.

4. Study the WEEKLY GROCERY ADS carefully.

First, look for items already on your shopping list. Note the item, size, price and store. Change your meal plans to accommodate sales. Be flexible. Try new-to-you brands and products, if the price is right. Your price book will tell you if the sale price is really a bargain. I track the best sale prices, the store and the date, noting the current best available deal in red. Then I understand the sale cycles for that product and know when to buy and when to wait. A “stockpile” allows this. Soon, you won’t HAVE to buy at any price just because you’ve run out of an item.

Now, notice the loss leaders. These are usually the big print, front page offers and can be a buy opportunity, depending on your needs, preferences, storage space and budget.

PUT AS MUCH OF YOUR BUDGETED FOOD MONEY INTO LOSS LEADERS AS YOU CAN AFFORD, after you buy the essentials on your list.

Needless to say, you only buy what you know you’ll use or you’ve just created a new money sink instead of saving. This strategy allows you to stretch your budget the farthest AND to build up a stockpile of staples. A full pantry (even if your “pantry” is under the bed, in the garage or under the tablecloth covering an end table) gives you some security; a base you can build on. The Dollar Stretcher offers lots of advice on storage - take advantage of it! Full cupboards help make you independent. If you work this system to the max, it’s possible to go to a grocery store only when you CHOOSE to; saving money, time, effort and gas.

A tip: put a can opener in your car, along with a plastic fork and spoon. Then you can run in, buy one can of a loss leader you’re not sure you’ll like, open and taste. Stock up on the spot, if it suits you. You may spend a few extra pennies and a little time, but it can keep you from owning a case of something your family hates and return trips to the store to stock up after a home trial. This is especially important if you don’t usually shop in this store and/or have traveled farther than usual to get there.

5. MAINTAIN! As you use an item, mark your inventory accordingly.

It’s a pain, but very helpful, especially in tough times, when it permits you to serve nutritious meals while hoarding your precious cash. It makes you focus on what you already have and use it to best advantage. It stops waste, prevents needless expenditures and trips because you don’t KNOW what you have and stretches your money. It’s also planet friendly.

Save your food plans. Recycle the meals into a new plan or just reuse them after you have a month’s worth. Study the ads every week and use them to make your shopping list. Note the best deals in your price book.

Keep investing as much of your budgeted food money into loss leaders as you can manage. As your stored reserves increase, your financial freedom increases, too. This is the aspect of this method that allows you to “coast”. As more and more of your resources are plowed into inventory, you’ll have more choices in life. You’ll be getting the most for your money, too.

Though not about this plan, there are two books by Doris Janzen Longacre that will help adjust your attitudes, motivate you and give you specific information, advice, guidance and recipes: Living More With Less and More With Less Cookbook. You’ll probably have to get them though interlibrary loan, because they disappear from library shelves. They both have much to say about living simply, saving money and making choices, with stories from people all of ages, living in many different circumstances. There are dozens of easy to adapt and adopt ideas to live in harmony with ourselves, our communities and our world.

A frequently mentioned item in budgeting articles is the “price book,” created by a shopper to note the prices of frequently purchased items. With one glance at a price book a shopper will be able to determine where to buy cereal and whether the mozzarella cheese on sale at store #2 is really a bargain. This is the clear advantage of a price book: you are doing your comparison shopping in advance so you will always know what the lowest price is. When you leaf through the grocery store ads you will not succumb to the lines reading “super sale” and “2 for 1,” but will coldly calculate the unit price and compare it to your price book listings. You will be super shopper, never paying too much for canned corn.

When the benefits are so clear, why upon a quick survey of frugal friends did I find that not one had a price book? “Store A is always cheaper on everything,” said one smugly. False, I know—I shop almost everywhere with my price book. “I know every price in my head,” said another. Not so, I think of this friend who forgets every appointment she makes. “It is too much of a hassle,” says friend number three. Aha, we have struck truth. Many people never make a price book because they think it is too complicated. They imagine running around town with a notepad copying down the prices of everything they have ever or will ever buy while getting the evil eye from assistant managers the entire time. Compiling a price book does not have to be painful. If you are thinking of making one, start now. The first step is easy.

Start saving your receipts from every grocery purchase you make. Tuck them away in a kitchen drawer and wait for the organization bug to bite you. When you are inspired, by Christmas credit card bills perhaps, pull out your receipts and start making your price book. The easiest method is to use a report cover with loose leaf sheets. You can then easily add sheets, and unlike a three-ring binder it is not too bulky to take to the store.

Start a sheet for each major category, canned food, boxed food, fresh fruits and veggies, meat, etc. Make columns with the stores that are within reasonable driving distance. Look at your receipts and copy down the price you paid for an item in the appropriate store column. Write lightly and use pencil so that you can erase this and replace it when you pay a cheaper price at that store. Your goal will then be to stock up so that you can wait for an item to meet or beat that cheap price before you buy it again.

The second step is to go through all the store ads and copy down prices of items you regularly buy (or would like to) in the appropriate store’s column.

The third step is to start using your book. Take it with you shopping so that you know whether an item is a good deal. Continue to save your shopping receipts and use them to update your price book for several weeks.

That’s all folks! Price booking gary@stretcher.com

Dear Dollar Stretcher,
I just read an article where someone mentioned a grocery “price book” that her husband had taped a cheapie calculator to. What exactly is that? How do you set it up? Thanks.
Lisa T. Fullerton, Calif.

Thanks for asking! A grocery price book is one of the most valuable tools that you have in saving money. And one of the easiest and cheapest to use. Your food budget is a great place to cut spending. Unlike some other areas (housing, transportation) you can make changes without making major adjustments in your life. You can do some small things that will add up over a period of time.

The savings can be substantial. If you’re like the average family, you spend about 7.4% of your money on food eaten at home. (source: U.S. Statistical Abstract) That means that a family with an income of about $40,000 will spend nearly $3,000 on groceries. Using a grocery price book is an excellent way to save some money without hurting your lifestyle.

To see how it works, let’s look over the shoulder of a professional purchasing agent. They work for a company that will spend over $10 million every year. And the buyer is measured in large part by how much money they can save the company through lower prices. So how do they do it?

First, they know when they’ll need more of a given item. It may be this month or next, but they know when more is needed. It’s important not to run out. That puts them in a situation where getting a good price is not the main goal. Getting some “now” is more important than price. Our buyer knows that’s a good way to waste money.

If you look around a little you’ll find a ‘buy history’ for each item they buy. It may be on index cards or even on the computer. But no self-respecting buyer will work without it. Why? The answer is simple. A buy history gives the purchasing agent a wonderful tool to save money and make good decisions. The history will tell when, where, how many and at what price the item was purchased. It may even include information from times that the price was checked but the item wasn’t bought.

At a glance, the buyer can tell how many they buy at a time. He knows if the price has been going up or down. Is it time to check the price at a different supplier? Is there a good time of the year or month to buy the item? Do you save money with larger quantities? Armed with that information, the purchasing agent will do their shopping. They can quickly spot a good deal.

Sometimes the price will cause them to ‘stock up’. Because they know what they have been using and what they expect to use, it’s easy to decide how much they want to buy. Conversely, they can tell when it’s best to only buy the minimum amount because the price is too high. Another advantage is that they can benefit from seasonal savings even if they won’t need an item now. If an item is cheapest in September and they always buy in November, it’s a good idea to buy early.

What does all of that have to do with Lisa’s price book question? Everything! The price book is just a home grown version of the purchasing agent’s buy history. And your menu plan is like their forecast. It’s a little less formal, but contains all the same elements.

In it’s simplest form a price book is usually either a spiral or loose leaf notebook. It can be 5 x 7, 8 ½ x 11, or any other size that’s convenient for you. The idea is to have something that you can take with you and use when you’re grocery shopping.

You want to divide it into parts that are roughly equal to the sections of the store. Meats, dairy, beverages, cereals, etc. Make the categories suit your preferences. The goal is to be able to find an item in your book with a minimum of effort while you’re in the store.

Each item that you regularly use at home will have it’s own page. On that page you’ll have a record that’s just like the buyer’s history. You’ll list the date, store, size and unit price. If there’s something interesting about a price enter it even if you don’t buy the item.

It won’t take long to have a good idea of what each item should cost. You’ll begin to spot trends in pricing. If you shop at more than one store (and you should) you’ll see that some items are cheaper in one store while others are best bought at a different market. And your information will get better with age. The longer you keep a price book, the easier it will be to spot trends and bargains.

You’ll quickly be able to tell the real sales from those that are more headline than savings. But you’ll also know when you’re looking at a real bargain and be able to make a ‘stock up’ decision on the spot. Having a menu plan will also help you ‘forecast’ your usage of an item.