Percentage of Income Spent on Food

[Spartana]

You also have to consider that the people cited in the article who only spend 9% of their income on food, might have a MUCH greater income then you do. The may spend the exact amount you do in dollars but because their incomes are so much higher then yours their percentage spent on food will be smaller. I am at the other end of the scale. I have a relatively small income so the amount percentage-wise I spend on food is greater then most peoples - even though I might actually spend alot LESS in terms of dollars spent each month. If your income is $500/month and you spend $250 of that on food then your percent is 50% but you may still spend alot less then other people do on food.

[ctg492]

Oh no I am afraid to actually figure this out, I guess I should. We have a grown son living with us now while looking for work. Oh boy the grocery bill went out the window It was the most noticiable increase in the house.

[Stella]

You also have to consider that the people cited in the article who only spend 9% of their income on food, might have a MUCH greater income then you do.

That's what I was thinking.

I don't know the percentage but groceries cost us about as much as our fixed monthly expenses combined. Of course, that's because our fixed expenses are insanely low. I feed a lot of people too. Five and a baby every night, but at least half the week it's between 6-10. I spend about $600 a month.

[rosarugosa]

We had been spending about $500/mo for two people and two cats. This includes shampoo, paper prods, cleaning prods, etc. By switching to a less expensive grocery store, I think we'll be able to cut this by almost $100 per month.

[bae]

We look to be running $175-$200/week, for two adults and one hungry teenager.

[Zoebird]

right now, we spend equal amounts on housing and food. crazy, right? then a smaller percentage on power and transportation. transportation is about double power.

But, by increasing our transportation costs (in the short term) we have decreased our food costs. I know, confusing. LOL but, our budget is small.

Also, our income is low, so YEAH, the percentage is much higher.

a friend of mine earns $105k per year, and uses costco and spends about $75 a week on food for two people (no pets). It includes a LOT of treats and junk foods. So, $300 per month, right? So what percentage is that? I don't have a calculator on this computer. LOL

[RosieTR]

3.7%, Zoebird.

Paul, the bigger question is, what do you consider "high" and "low" and "OK"? For 2 people, between $500-600/mo is pretty high in my opinion, but I'm a foodie and DH isn't about to give up his craft beer. If we were desperate, of course we would make some changes. The point is not to constantly feel like crap about your budget unless you actually aren't saving anything and getting in a hole (aka desperation). The point is to save some money, spend some money on your values and of course spend some money on necessities.

[Zoebird]

thanks rosie. it would have taken me a long time to do that in my head. if i'd had paper and a pen around, slightly faster.

In the US, we were easily $250/wk for the two of us -- eating mostly local, 100% organic (veg, meat, dairy, eggs), and this included things like fermented cod liver oil. Here in NZ, it's the three of us for $315 currently, and possibly getting that down to $275 or so. This is eating about 90% or more local, about 50% or less organic, and paleo-styled.

I suppose if you did the exchange rate, it comes out about the same, btu the reality is that once you are in an economy, a dollar is a dollar. A NZD is a NZD. I earn NZD, so i spend NZD, kwim?

anyway, yeah. food here is also very expensive anyway, and there's a 15% tax on it. So, that number is tax inclusive.

[ljevtich]

I would especially suggest that you go to the bottom of the article and click on the link stating: Click here to see how Americans are spending their money.

The Forbes Article is based on income levels and is very revealing.

For our family of two we are about middle, but I was looking at the averages so far, and it is much higher for food than what they are saying.

It is interesting though, this was written 5 years ago. So take it with a grain of salt.

The more Americans make, the less they spend on groceries. The bottom fifth of earners spend a whopping 12% of their yearly budget on food at home, compared to 9% for the middle fifth, and 6% for the top fifth.

[Kestra]

Appears to depend also on whether they mean food - like groceries, or ALL food. How much you eat out would really change that percentage. We spend about 20% of our spent money on food - over 90% is groceries, with the remainder eating out. But that's only 11% of our net employment/misc income. I love food though - fresh produce, organic, local food. I can afford it so I'm not going to try to cut costs in this area. We also spend about half our spending on housing/utilities. Oh no! But we like warm comfortable housing and are willing to pay for it. On the other hand we're not buying fancy clothes or cars or vacations. The less you spend on other things, the higher the percentage is going to be for food, housing, etc. It doesn't mean you're going broke.