How to save money on groceries: 20 simple ways to cut your food bill in Australia

How to save money on grocery shopping in Australia

1. Plan your meals

Meal planning is one of the most effective ways to save money on groceries. It helps reduce impluse purchases (such as snacks, extra items and treats), prevents food waste, optimises bulk buying and minimises the need for expensive takeaways. 

More: The best easy and tasty recipes from RACV Club chefs

2. Write a shopping list

By making a shopping list before you head to the supermarket, you can estimate the cost of your groceries. Go online and compare the advertised prices for the items you want. This helps you stay within your budget and prevents overspending. It also makes it easier to see if you're getting good deals on the items you're purchasing. 

Another reason to make a shopping list is more efficient shopping, which saves you time and money, and helps you avoid buying items that you already have at home.

There are apps that may help, such as an app that helps you track and manage your shopping needs, or one that helps customise meal plans and recipes, and organises the required ingredients into a list.

3. Shop around for the best deals on groceries

If you tend to go to the same major supermarket every week, try switching things up. Shop around for the best deal and get to know the prices of items you buy frequently, such as rice, lettuce, toothpaste, tinned tomatoes or beef mince. 

You may also find it worthwhile researching the costs at your local butcher, greengrocer or independent supermarket.

Discount chemists and specialty stores often have discounts on health foods, cosmetics and bathroom supplies, as well as baby and other household staples.

Shopping at local markets across Melbourne and the best markets in regional Victoria can help cut your grocery bill, with fresh seasonal fruit and vegetables often available at lower prices than major supermarkets.

4. Take advantage of discounts on staples

Shopping sales can save you money, but you need to be smart to avoid falling into the trap of buying more than you need.

Sales on fresh produce, bread, meat or dairy are also great if you're prepared to incorporate those ingredients into your next meal. If you can't use them before they spoil, it's not saving you any money. It's better to look at generic brands or cheaper cuts of meat as a consistent way of cutting costs.

5. Buy groceries and ingredients in bulk

Buying a larger cut of meat and freezing some of it can be more economical than purchasing smaller portions multiple times. Likewise, buying non-perishable items such as canned goods, pasta, rice or household products in bulk can save you money over time. Not only will you pay less per item, you'll spend less time travelling to the supermarket. 

However, make sure you organise your pantry.

• Seal containers to prevent pests getting to the food.
• Keep foodstuffs away from direct sunlight and heat sources such as stoves and ovens.
• Prevent moisture, which can spoil pantry items, such as grains and cereals, and result in mould.

More: How to prevent mould in your home

6. Make extra meals and freeze them

It’s cheaper to cook in bulk and use leftovers for lunches and another meal the next day. Cooking from scratch, and in larger quantities can save time and money. You can freeze meals for those days when you're too busy or tired to cook and avoid buying takeaways.

More: What is an air fryer? Everything you need to know

7. Buy whole produce rather than packaged

It might be tempting to buy mushrooms pre-sliced, ready-to-roast pumpkin pieces, zucchini noodles or even cauliflower halves but, unless they're on sale, buying whole produce is generally a more cost-effective option. 

8. Always check the unit cost

Always check the unit cost, even when products are on sale. This makes it easier to compare the price by weight of similar products.

It’s nearly always cheaper, for example, to buy red, green and yellow capsicum separately, rather than a plastic-wrapped pack of three. Similarly, if you see an expensive brand of olive oil on sale, check the cost per litre to gauge whether it's a better deal. 

Don't forget to check the top and bottom shelves, in case lower-cost items have been shelved out of direct view.

9. Slow cook with cheaper cuts of meat

If you're looking for more economical ways of cooking, particularly for larger groups or families, slow cooking is the answer.

From lamb casserole and beef brisket to braised beef and Guinness pie, slow cooking is the secret to dishing up effortless dinners. As well as lending themselves to cheaper cuts of meat - such as beef short ribs, lamb shanks and pork shoulder - slow cooking is a set-and-forget meal.

Simply prep the night before, then put in a slow cooker in the morning and the meal will be ready at the end of the day. These meals also freeze well, so make extra and you'll have a ready-made meal for another day.

If you're slow cooking, always make sure your appliance is safe and don't leave anything on the stove unattended. Cooking and electrical fires cause the most house fires across Victoria, according to Country Fire Authority. Make sure there is a working smoke alarm in your kitchen.

10. Bake your own snacks and sweets

Instead of store-bought, bake your own snacks. Most basic muffin recipes are easy, so they're a great way to use up leftovers in the fridge, such as fruit, yoghurt, sour cream, carrots and cheese. Consider trying these healthy zucchini muffins or the best-ever banana bread.

Other easy dessert and snack recipes include:

The best and easiest Anzac biscuit recipe
Salted caramel chocolate chip cookies recipe
Simple and easy one-bowl sponge cake recipe
The ultimate chocolate cake recipe

Another way to save money is by growing your own veggies and herbs at home.

11. Keep your off-cuts to make stock

Whether you're trimming fat off your meat or prepping vegetables, keep your off-cuts, such as carrot peels, tops and bottoms of veggies, broccoli stems.

Freeze them until you have enough, then throw them into a pot with leftover chicken, some salt and pepper, and herbs of choice and boil for hours for a cheap chicken stock.

Offcuts can also be used for growing new vegetables, or even composting.

12. Use legumes and vegetable to bulk out meals

Bulking out your meals with lentils or vegetables is a nutritious and cost-effective way to stretch your budget a little further.

Add grated carrots or zucchini to your beef taco mix, bulk up your chili con carne with red kidney beans, or add sweet potatoes and chickpeas to your lamb stews. 

Go meat free with something quick and tasty like budget-friendly vegetable tagine or sweet potato and kidney bean hot pot.

13. Store fresh produce properly

Storing produce properly will help increase the shelf life of your grocery haul, and help stop food waste.

As well as storing fresh produce at its preferred temperature, it's also worth learning which fruit and vegetables can happily co-exist in your crisper. Certain fruits and vegetables produce ethylene gas as they ripen, which causes ethylene-sensitive produce to ripen quicker, too.

If the vegetables were in the refrigerated section at the supermarket, that's where you need to keep the at home. 

More: Fridge buying guide: French door, side-by-side and plumbed

14. Avoid processed and ready-made foods 

Save on GST by avoiding ready-made and processed foods. Go back to basics and make your own spice mixes, grate your own cheese, and wash your own lettuce leaves for salads.

Not only will you be better off financially, it's also better for your health as you'll be avoiding the added salt, sugar and other preservatives that are hidden in processed foods. 

More: The best budget-friendly recipes from RACV Club chefs

15. Freeze food to avoid waste

From bread and bananas to beef mince, if you're not going to use these items before their use-by dates, freeze them. That means you can grab a slice of bread when you need it, have a banana on hand for a smoothie and defrost the meat for beef patties for a convenient meal down the track.

16. Prepare meals in advance

A couple of hours in the kitchen on a Sunday can save you time, money and more than a few headaches during the week.  

Whether you're prepping easy school lunches for the week, cutting veggies for the following night's stir-fry, pre-washing salad leaves or throwing together a slow-cooked meal, having meals sorted in advance means you're less likely to splurge on convenience items when you're feeling tired, lazy, or get home late.

17. Shop seasonal produce

Seasonal fruits and vegetables are usually more affordable, unless in short supply. Consider shopping at farmer's markets rather than the supermarket and compare the prices per kilogram to see if you're getting a better deal.

More: The best flea, craft and farmers markets in country Victoria

18. Substitute expensive ingredients

If a recipe calls for expensive specialty ingredients, it's often possible to find cheaper alternatives. For example: swap expensive cheeses for a cheaper variety; use beans or lentils instead of ground meat, and consider frozen peas rather than fresh ones.

You can even experiment. For home-made guacamole, if avocados aren't in season, you can mix frozen peas with spices for a similar texture and flavour. By swapping out expensive ingredients with budget-friendly alternatives, you can still create delicious, healthy meals without breaking the bank.

19. Use points and gift cards

Some rewards and benefits are worth signing up for. Investigate if your local supermarket has a points or rewards system that provides regular offers, discounts and savings.

More: How to find the cheapest fuel in Melbourne and Victoria

20. Find alternatives to fresh produce

If you're looking for an easy way to cut costs, opting for snap-frozen or tinned alternatives is a healthy, affordable alternative.

Frozen peas, broccoli and blueberries are sometimes even tastier than fresh; corn is still sweet from a tin, and jars of tomato passata are a great base for your bolognese.

What is a realistic grocery budget per week in Australia?

A realistic grocery budget in Australia varies by household size and shopping habits. Data from the Australian Bureau of Statistics shows household spending on food can range from around $100–$150 per week for a single person, $150–$200 for a couple, and $200–$400 or more for a family of four. Costs are typically higher in metropolitan areas and can be reduced through meal planning, bulk buying, and minimising food waste.

Why are groceries so expensive in Australia right now?

Grocery prices in Australia have increased in recent years due to a combination of factors, including inflation, higher transport and fuel costs, supply chain disruptions, and rising production expenses for farmers.

Data from the Australian Bureau of Statistics shows food prices have risen significantly in recent years, particularly for fresh produce, meat, and dairy. Seasonal conditions and extreme weather events can also impact supply, leading to temporary price increases on certain items sich as fruit and vegetables.

How can I save money on groceries in Australia?

You can save money on groceries in Australia by planning meals in advance, shopping with a list, buying home-brand products, choosing seasonal fruit and vegetables, and comparing prices across supermarkets and local markets. Simple habits like avoiding impulse purchases and switching to lower-cost alternatives can significantly reduce weekly grocery spending, particularly during periods of high food inflation. In summary, following these strategies not only saves you money, but may help improve your diet, reduce waste and allow you take more control over your finances and shopping habits.