(Because of inflation, it’s no longer worth penny pinching)
3 Benefits of Bulk Investing
What sort of investment return gets you excited? You get less than 2 percent on cash in the bank. The average return from the stock market, if you’re lucky, you might get 8 percent.
According to Money, the Vanguard Total Stock Market Fund returned 3.5 percent for the last ten years. The S&P 500 index returned 2.9 percent, or zero after inflation.
Yet, you can easily get 30 percent or more on…food investments. Stored food is a safe investment, which is guaranteed to increase in value and comes with built-in inflation protection.
1. Food Will Cost Less
When you purchase in volume you’ll spend less. Do the math: buying in bulk and stocking up during sales saves money.
If you calculate the money savings as an investment return, it turns out that stocking up on groceries and other things you regularly use will yield a much better investment return than your mutual funds or bank interest will.
Katelyn is pinching nickels.
That’s because there’s usually a bulk cost reduction of 10 to 30 percent right off the top. Obviously, to save money, you need to make wise purchases, even in bulk, or you’re wasting your money.
There’s an investment return on your pantry items. If tomato paste usually costs 45 cents a can and you purchase it on sale for 33 cents a can. If you buy a year’s worth, your “return on investment” (treating each can taken from the stockpile as being worth 45 cents until, a year later, when you’ve used them all) comes to more than 65 percent.
2. Inflation Protection
The days of cheap food are over. Food inflation for 2011 has been right around the 10 percent mark. All year, we have seen a steady rise in agricultural commodity prices and there’s no sign of it letting up. Corn, sugar, coffee, orange juice, soybeans and palm oil futures are at all time highs.
The USDA Economic Research Service has posted their food forecast for 2012. (Click Here to see it.) The cost of food will continue to climb during 2012.
3. Household Efficiency
With a well-stocked pantry you’ll be much more efficient. With fewer trips to the store you’ll save gas and wear and tear on your vehicle. It’ll be easier to avoid Fast Food, because you’ll have more options for dinner from your pantry (resulting in fewer doctor visits). You’ll avoid impulse buying. An added bonus: you’ll help to reduce the waste from packaging (5 million tons of packaging is throw out each year).
Here’s a short Essential Pantry list, just to get you thinking about the items you use the most:
Canned tuna and chicken
Coconut and olive oil
If your home is short on storage space, these items can easily be stored on shelves in your garage.
Cleaning items: soaps, detergents and bleach
Paper items: paper towels, napkins, baggies, trash bags, TP, tissue, paper plates
Personal items: shampoo, female hygiene products, baby diapers, etc.
Read Pantry Clean-Up for more food storage ideas.
For a synopsis of Baby Bites: Transforming a Picky Eater into a Healthy Eater, Click Here.