How to cut the cost of your shopping and avoid the VAT rise

With VAT increasing to 20 percent in January, the cost of many items included in the weekly shopping will increase. We consider how you can keep control of your monthly shopping bills and avoid the rising prices.

VAT will be increased by 2.5% to 20% in January 2010. Various fresh food products are and will remain exempt from VAT. However the prices of many packaged and processed foods and non food items such as cleaning products will increase.

Increases in prices is not good news at a time when many family incomes are expected to become even more stretched as the benefit cuts announced in the budget start to hit home.

However, if you spend a little time planning what you will buy and taking a shopping list with you when you go to the supermarket, you will be able to keep your shopping budget under control and perhaps even save money every month.

Going to the supermarket without a shopping list costs money

The majority of people do their weekly food and essentials shopping without really thinking about what they need before arriving at the shops.

It is all too easy to turn up at the supermarket and walk up and down the aisles putting items into your trolley that you think you need or that just happen to take your fancy.

However, if you need to stick to a food and essentials budget, then this method of shopping is a mistake.

You will almost certainly end up buying things that you do not need and may not even use and have to throw away. In effect you will simply be pouring money down the drain.

Stick to your shopping list

The best way to beat the VAT rise and save money on your shopping is to plan your shop before you go.

Think about the meals that you will need to prepare in the coming week. Look through your cupboards to see what you are missing and then make a shopping list of the items you need.

When you get to the supermarket, the golden rule is only buy what is on your list. This sounds incredibly simple, however it is amazing how tempted you will be by special offers.

Take advantages of promotions only on items you need

Three for two deals and price reduction promotions can seem such good value. However, if you do not need the items on offer, you are quite simply wasting money. Play the supermarket at its own game by taking advantage of promotions for items that you normally buy and will not perish.

For example, if you use a particular brand of washing powder and there is a promotional offer on that brand that week, take advantage of the offer.

Even if washing powder is not on your shopping list, taking advantage of a price cut or two for one deal will save you a considerable amount of money and the items can be easily stored until you need them.

The other golden rule is not to go to the supermarket when you are hungry. If you do this, then everything you see will look good and you are sure to buy things because you want to eat them straight away.

Unfortunately the price of many items we buy from supermarkets will increase from the first of January 2010. This will come at a time when many people are faced with reduced incomes.

It is therefore vital to make sure that you keep your weekly shopping spend under control. If you make small changes to the way you shop such as planning what to buy and making a list, your spending will remain under control. You may even be able to save yourself a considerable amount over the course of a month.