KETVI ROOPNARAIN
With 7.4% inflation over the past year, we’re now grappling with rising petrol prices and higher grocery bills. When the cost of living rises, it takes a while for paychecks to catch up so we immediately feel the pinch in our wallets.
« Kouma fer enn bidze pou kone sipa pou ena kas reste lafin dimwa? »
A popular budgeting method is the 50-30-20 rule, i.e, allocating take home pay (after-tax) as follows:
– 50% on Needs – necessities like housing, groceries, transport, utilities like CEB, CWA and phone bills.
– 30% on wants – extras which aren’t essential to living and working. These can include monthly subscriptions like Canal+, travel, entertainment and eating out.
– 20% towards Savings, Investments and Debt. This might be stashing spare cash away for the future and/or paying down existing debt e.g mensualités from hire purchase appliances.
Of course, this rule will vary by household and how much money we make. It is sobering to think that for some struggling families, the 50-30-20 rule is simply not feasible. If you’re in survival mode, it might be 100-0-0 with some needs still out of reach. For most, 50-30-20 is a good starting point. It allows you to pay your bills, have some fun and set a little aside for a rainy day.
For Anita, as an example, who makes Rs25,000 a month after tax, her 50-30-20 spend on needs, wants and savings & debt, would equate to Rs 12,500, Rs 7,500 and Rs 5,000 respectively. In this case, if her family likes to go out for a family meal, this will come out of the Rs 7,500 pot, or Rs 1,875 each week whilst her repayments for her car loan would be out of the Rs5,000 pot.
Since Needs are where our bulk of spending might go and groceries are a large share of our Needs, « anou al fer komision ansam » with 5 suggestions to slash the bill.
1. Make a plan
This month, on payday, try something new – a money lesson – with the family. Start with a blank sheet of paper. The first number you’ll write is the money « mama-papa » make from working during the month. Next, outline your typical monthly spend based on Needs, Wants, Savings, Investments and Debt. Now that you have a target number for grocery related spend, you’re ready for the challenge.
Shopping in bulk for non-perishables saves on time and fuel and means intentional meal prep and planning.
2. Reframe grocery shopping to a chasse au trésor for kids
Let’s bring wonder and adventure to the mundane. Distribute supermarket catalogues to your kids and as you go through the items to buy this month – « diri, dile, delwil, fromaz, sardinn », get them to circle the item.
Now’s the time for comparison. What is on sale? What’s the percentage saving? Is this a good deal? Then add those items to the list, categorise these as Needs and include the price. You now have a budget for your shopping and you know where to shop for what.
3. Gamify decision-making and reprioritise
Next is Wants. Empower the children by making them part of this decision making process by giving them a budget each to pick their preferred snacks and accessories for the month. As they share their selection for the month, gently guide them in their decision making.
“Devi, it’s either the colouring pens or highlighters. Lakel to le plis?”
From “maman, j’ai faim!”, by including everyone in the process, you’ll be teaching the kids about where the food on their plate comes from and they’ll learn about the grocery budget at the same time and why sometimes you say no to something they want.
4. Avoid the booby traps
Our decision-making is hampered when we’re tired and hungry. Shopping on a full stomach means we’re less likely to buy unplanned junk food or splurge on a takeout meal after.
Try to resist browsing aisle by aisle to avoid temptation. Sticking to the shopping list means we’re less likely to go over budget.
Suppliers often negotiate for their products to be on eye level. Look around or you’ll miss the cheaper substitutes on the lower or higher shelves.
5. Stroll dan bazar
Forget the packaging in store and leave fresh fruits and veg shopping to the bazar, it’s cheaper.
Revel in the colourful produce and cacophony of shouting « marsan ». Note the prices and arm the kids with reusable bags and tick off the buy list.
Buy seasonal and local – it’s better for the environment and the wallet too. Give bruised veggies a chance and if all you need « pom damour » for is « rougay », does it matter that they are small-ish? Buy in bulk, blend and freeze for other dishes later. Voilà!
Why not go late in the afternoon? Marsan will want to finish their stock so you might get a few lots for a bargain. Be kind – haggle if you must but remember, « nou tou pe trase ».
We’re hard-wired to like routine. In trying something new, like a financial wellbeing journey, we’re more likely to succeed if the whole family is on board. Compare your initial budget for groceries to what you ended up spending this month. Make it fun. Start a kitchen garden if you can. Rinse and repeat and keep winning with your groceries.
Bottom line, we may not be able to control inflation but we can flex our spending. « Oblize reaziste. »
Over time, a household should aim to move away from the 50-30-20 budget to be more investment heavy and future focused. In the meantime, « enjoy la chasse au (trésor) commissions! »
Share how your grocery challenge went to anoukozkass@gmail.com or @mauritiusmoneyandme.
Disclaimer – Information in this column is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute financial advice. Before making financial decisions, consider seeking independent financial advice tailored to your individual needs.