Whole Foods
Nonetheless, Whole Foods is the perfect laboratory for how and how not to control your spending. Why? Because even at Whole Foods, it's possible to get good deals and maintain a high quality of life.
What not to do
Whole Foods sells some exorbitantly expensive items such as $20 emu eggs. Don't buy 'em. Instead, if you're craving a giant omelet, a dozen chicken eggs at Whole Foods -- even of the fancy, organic, extra-large variety -- will still cost you only $3.
Whole Foods also sells a lot of prepared food. Don't buy that either, even if it's convenient. You pay up for that convenience -- so much so that the company's strategy involves rolling out more and more prepared-foods offerings. Instead, buy the raw ingredients and do the cooking yourself. It may take a little more time, but you'll either save money or eat twice the amount of food.
And speaking of cooking, don't ever go shopping at Whole Foods dead-set on making a specific dish. The last time I did that, the swordfish I needed was selling for $18.99 per pound. Instead, have a few different meal options in mind. You'll be able to plan your menus based on what's on sale, and even better (since I'm married now, I can reveal this tip!), members of the opposite sex tend to find cooking skills very attractive.
You heard it here first.
More don'ts
- Don't be afraid to buy the generic brand. It's cheaper and it's good.
- Don't be afraid to look like a hippie and bring your own bags. Whole Foods will refund you $0.05 per bag, and that little bit of good you're doing for the Earth might even give you a warm fuzzy feeling.
- Don't drink too much. Alcohol tends to be taxed highly and very expensive -- two traits that can put a severe dent in your bank account. Indeed, while Whole Foods boasts an impressive EBITDA margin of 7.8%, just look at how that compares to the big players in hooch:
|
Company |
EBITDA Margin |
|---|---|
|
Diageo |
33.2% |
|
Constellation Brands |
18.6% |
|
Anheuser-Busch |
27.8% |
|
Fortune Brands |
20.7% |
|
Molson Coors |
17.9% |
Those numbers make it great to be a shareholder of one of those companies, but pretty lousy to be an avid consumer. So drink in moderation -- it'll do your body and your portfolio good.
- Don't sell yourself short. Splurge once in a while on the treats you like: chocolate, good coffee, and what the heck, swordfish. If you get too tight-fisted, you won't stick with your budget.
- Don't steal. Stealing looks great from a personal savings perspective, but the consequences for your character (and freedom) can be pretty lousy. And as for that lady in the black suit that Rex Moore and I saw at the Whole Foods in Alexandria, Va., buying coffee and filling another cup to the brim with free samples of Jewish Apple Cake: Yes, ma'am, that's stealing.
The Foolish bottom line
Personal finance is all about setting a budget, sticking with a plan, and having some fun while doing it. You don't have to torture yourself to save money, but you do have to be conscious of the funds you have and the material goods you don't have to.
My wife and I, for two, are not willing to give up the good eats that Whole Foods offers. That said, we stick with the above guidelines whenever we shop to ensure that we get the biggest bangs for our bucks.
Before you know it, you'll have enough money to have someone make that emu egg omelet for you.
More interested in investing than omelets? Sign up for our exclusive teleseminar with Motley Fool co-founders David and Tom Gardner. They'll tell you when to buy and sell stocks in this uncertain market.
Tim Hanson does not own shares of any company mentioned in this article. Whole Foods is a Stock Advisor recommendation, Diageo is an Income Investor recommendation, and Anheuser-Busch is an Inside Value recommendation. No Fool is too cool for disclosure ... and Tim's pretty darn cool.
