A Money circle comes in different forms and for different purposes. Some people form money circles to lend money within members of the same group known as “lending circles”. Then, there is this group whose main focus is to save money. Known as the “saving circle”. The scope is broad. When it comes to your wallet, this is how to save money while grocery shopping:
The grocery budget represents a good portion of our monthly income. Americans spent approximately 10% of disposable income on food. That number goes up when you have dependents. So being able to save a couple of dollars every month can be useful.
Here is how it works:
Every month, you chip in depending on the group agreement a certain amount.
Step 1: Consolidation
- Each person brings a list and the group consolidate everything in one single list. You have to consolidate, aggregate quantities, quality, label etc… It is probably the most challenging step.
Step 2 : Buying
- A designated person takes the list to a grocery store or a wholesale club and purchase in bulk. For example a bag of your favorite rice will cost maybe $10, with coupon you can get it for $8. Probably , it is on sale so it will go for $7. So you will save $3 for the bag of rice. However, with group buying because it is in bulk you will probably get it for $6 with good negotiation tactics.
Step 3 : Distribution
- Distribute products according to everyone’s list.
The process is not easy, but it is worth. Perhaps. it will not work for all grocery products but most likely you will be able to save some precious dollars. It is all about the bargain power. That is how a money circle can help you save money on groceries.
You can designate a leader who’s going to stop by each member’s house to drop or each member can stop by a specific location to pick up their groceries.
In conclusion, the system might not work for everything and everyone. But if you are in the right club, saving can be big.
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