According to an infogographic compiled using information from the USDA, 6.9% of Americans’ household spending is on food. While this doesn’t seem like a huge amount, it nonetheless makes an impact. Consider: If you make $45,000 a year, that’s $3,000 a year. Many of us spend more than that, though.
On top of that, the World Bank reports that food prices have been rising in recent years. While food price stabilization has occurred recently, there is a chance that another spike — like the one seen between 2010 and 2011 — could be seen again.
If you are concerned about food prices, you need to do what you can to offset the costs associated with buying groceries. One way to reduce what you spend is to use a great grocery rewards card.
The American Express Blue Cash Preferred card offers 6% cash back on grocery purchases that you make every day. As long as you make your purchases at a stand-alone US grocery store, you can earn 6% cash back. You do have to pay an annual fee of $75 for this card, but you can likely recoup that fairly easily with the generous cash back rewards, which also include 3% cash back for gas purchases at stand-alone stations, and 1% cash back on everything else.
There is also a $150 bonus when you spend $1,000 on purchases in the first three months of your account. This bonus is redeemable for a statement credit, and offsets the first two years of annual fees.
As long as you pay off your account balance each month, it’s possible for you to reap the benefits of this generous cash back program (if you don’t pay off your balance, the interest you pay will likely negate the amount of your rewards).
Don’t just rely on cash back to save money on food costs, though. There are other ways to reduce your exposure to food prices inflation:
You will always need to spend money on food. However, with the help of the American Express Preferred card, and when you pay attention to reducing your costs, it’s possible for you to reduce the impact food has on your budget.
Photo by Golden Eel.
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I'm just an average mom, trying to live a frugal life and get out of debt. I write about things that have (and haven't) worked to improve my family's financial situation. What works for me may or may not work for you, and you should always consult a financial advisor before making important financial decisions.
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