The #1 Way I Found Money To Pay Off $37,000 of Debt

When my husband and I committed to eliminating $37,000 of debt on a single income, experts kept advising us to “find extra money” – but no one explained how. Like many families, we felt trapped: Our budget was already lean, and sacrificing daily necessities seemed impossible. Then, I discovered a strategy that transformed our financial trajectory: The Grocery Game.

This method allowed us to redirect $300-$500/month toward debt without earning more money or cutting essential expenses. Here’s how it works, why it’s psychologically effective, and how you can adapt it to your life.

Why Groceries Are the Secret Weapon

Grocery spending is one of the few flexible categories in most budgets. Unlike fixed bills (rent, insurance), food costs can be optimized through intentional choices. The average U.S. household spends $475/month on groceries (USDA, 2024), but most can reduce this by 10–25% without deprivation.

In our case, we slashed our monthly grocery bill from $800 to $550 using three key tactics:

1. Budget gamification: Set a weekly challenge to spend 15% less than your usual amount. Track savings in a jar or app for visual motivation.
2. Meal planning around sales: Base recipes on discounted proteins/seasonal produce. A $5 rotisserie chicken became 3 meals (tacos, soup, sandwiches).
3. Cash-only shopping: Using physical cash reduces impulse buys by 23% compared to cards.

The Step-by-Step Grocery Game Strategy

Step 1: Audit and Reset

• Calculate your baseline: Review 3 months of grocery receipts. Exclude non-food items (cleaning supplies, pet food).
• Set a “stretch” goal: Aim for 10–15% below your average. If you typically spend $600/month, target $510–$540.

Step 2: Strategic Shopping

Example: Buying whole chickens ($1.29/lb) instead of boneless breasts ($3.99/lb) saved us $18/week.

Step 3: Redirect Savings Immediately

When you save $50 at checkout:

1. Transfer it instantly to your debt payment.
2. Label the payment (e.g., “Kroger Week 3 Savings”) for psychological reinforcement.
3. Celebrate micro-wins: A $10 weekly saving = $520/year toward debt.

Why This Beats Traditional Debt Strategies

Most experts recommend either the Avalanche Method (target high-interest debt) or Snowball Method (pay smallest balances first). While mathematically optimal, these often fail because they ignore behavioral economics. The Grocery Game works better because:

1. It’s proactive: Instead of trimming existing expenses, you prevent overspending before it happens.
2. Instant gratification: Seeing $20 leftover after shopping triggers dopamine, unlike abstract budget adjustments.
3. Scalable: Saved $30 this week? Next week, aim for $35.

A Reddit user shared how this approach helped them pay off $9K in 14 months:
“I turned grocery shopping into a competition. Saved $1,200/year just by price-matching yogurt and eggs. Put every penny toward my 29% APR card.”

Amplify Your Results: 5 Advanced Tactics

1. Stack discounts: Combine coupons, rebate apps (Ibotta), and loyalty programs. One family reduced a $200 bill to $48 using this method.
2. Inventory management: Organize pantry/freezer to avoid duplicate purchases. 30% of groceries are wasted annually – that’s $1,500/year for the average household.
3. Barter garden surplus: Trade homegrown tomatoes for neighbor’s eggs on platforms like Nextdoor.
4. Credit card hacking: Use a cashback card only for groceries, then immediately pay it off. Earn 2–6% back.
5. Tax-advantaged accounts: If eligible, use HSA/FSA funds for eligible health-focused groceries (e.g., gluten-free items).

When to Combine with Other Strategies

While the Grocery Game alone can yield $3,000–$5,000/year in debt payments, accelerate progress by:

1. Deploying savings strategically

• If you have $5K+ in savings earning 4% interest but owe 24% APR debt, paying $4K toward debt saves $800/year in interest.
• Exception: Keep a $1K emergency fund to avoid new debt.

2. Balance transfer cards

Move high-interest balances to 0% APR cards (15–21 months). A $10K transfer at 3% fee ($300) saves $2,400 in annual interest.

3. Side hustles

Pair grocery savings with gig work:

• Instacart shoppers earn $15–$25/hour while learning store sale cycles.
• Meal prepping for busy families: Charge $5/meal using your discounted ingredients.

The Psychological Power of “Found Money”

Neurological studies show that money framed as “unexpected” (like grocery savings) is 73% more likely to be allocated to goals vs. regular income. By treating supermarket savings as bonus income, you bypass the scarcity mindset that derails budgets.

Maintaining Momentum Long-Term

1. Seasonal resets: Adjust for holidays/summer (higher produce costs).
2. Community support: Join challenges like $25 Grocery Week (Reddit’s r/32dollars).
3. Tech tools: Apps like Too Good To Go (discounted surplus food) and Olio (free neighbor donations).

After 31 months, we made our final debt payment – funded largely by $11,200 in accumulated grocery savings. Today, we maintain a 15% buffer in our food budget, redirecting the excess to investments.