Barefoot Investor’s three tips to beat surging food prices and reduce waste

Food prices have surged a staggering 30 per cent this year and are likely to shoot even higher in 2022. Here’s what you can do to beat the price rise.

Scott Pape says food prices are likely to rise again in 2022.

Around the farm, everything seems to be more expensive.

Yet nothing more than fertiliser, which has skyrocketed in price since I’ve been away, and is now at an all-time high.

I know what you’re thinking: “Dude, is this the Romsey Rag’s Farm Report or something?”

Well, hold up a minute, because what I’m talking about here has massive ramifications for 2022.

Global food prices have just hit a 10-year high — rising a staggering 30 per cent this year — according to the United Nations.

A quick primer for those who figure their food magically comes from an underpaid dude on a bike: Fertiliser is a key ingredient in how we feed the world.

If farmers use less fertiliser, they’ll grow less food, which means that in poorer parts of the world there may be a lot of hungry people next year. And, as my old mate Tim Fischer used to say, “society is three meals away from a revolution”.

Scott Pape says you are more likely to reduce food waste if kids grow their own veggies.

For you and me, this will likely mean even higher food prices next year.

So let me show you how to beat the price rise.

The average Aussie household throws out 11 per cent of the food they buy, which works out to be chucking $1038 per year in the bin, according to the annual Rabobank Food and Farming Report.

So, given we all have a jar of something funky in our fridge that predates the pandemic, here are a few practical things we’ve done lately to curb our food waste.

First, we Marie Kondo’d our pantry.

You don’t need to ask “Does this spark joy?” but “Would this give me salmonella?”

When in doubt, throw it out. (However if it’s canned or non-perishable food, do your bit and donate it to your local Food Bank — they really need it).

Second, we steer clear of shopping at the supermarket. Instead we order online, so we don’t end up buying stuff we don’t need.

Throughout the week we keep a running list on Alexa, but you can use whatever digital overlord that tracks your life. Heck, you could even go Boomer and keep a list of stuff on the back of the fridge. Whatever works.

Finally, every parent knows that one of the biggest wasters of food is fussy kids. Well, we cracked the code on that one: as soon as we got our kids growing their own veggies, they couldn’t get enough of them.

We also have chooks for eggy soldiers … and fertiliser.

Tread Your Own Path!

This is How a Heart Breaks

Dear Scott,

We can’t buy a home. My fiancé and I both earn good money. We have a healthy deposit and budget and want to buy so we can start a family. We’ve offered more than they were asking and been told no — the vendor took a cash offer instead.

We told agents we are pre-approved first homebuyers, yet they just don’t call us back. I obsess over realestate.com, ringing as soon as something comes up, only to find it was sold while waiting to be uploaded to the site.

The constant rejection hurts when it’s holding us up from doing what we so desperately want to do — have a baby. Will it end? My heart breaks for anybody earning the average wage or below it. The dream of owning your own home must be feeling like a heart crushing unlikelihood.

Just another beaten-down first homebuyer

Hi-ya

I have a few thoughts.

First, as a property investor myself, I get no joy from surging house prices, which have increased a staggering 21 per cent over the past 12 months. This isn’t healthy for the stability of our country.

Second, I believe interest rates will rise, and when they do they’ll burst the housing market bubble.

Let me be clear: I have no crystal ball, and picking short-term economic moves is a mug’s game — just ask the Reserve Bank, which has been consistently wrong on all manner of economic forecasts.

Yet it gets clearer when you zoom out:

In 1990 official interest rates were 17.5 per cent … today they are 0.1 per cent.

Question: where do you think they’ll go over the next five to ten years?

I asked my eight-year-old this question, and he said “Up!”

“After all, they can’t get that much lower, Dad.” (Get this kid a seat on the RBA board!)

Scott Pape says you don’t need a crystal ball to know that when interest rates rise it will be brutal for many people who have borrowed too much.

So when interest rates rise — and they surely will — it’ll be brutal for many people who’ve borrowed too much.

I can’t tell you when that will be … the only thing I can say with great certainty is that you don’t want to be up to your eyeballs in debt when they do.

Finally, who says you need to own a home to have a baby?

Be a smart, savvy, cashed-up renter … rather than a postcode povvo.

A Super Confession

Hi Scott,

My husband and I have been with Christian Super Fund for the past 20 years. Today they sent us a letter saying that they’ve been underperforming and that we should change funds. My husband is 61 and I’m 59. We don’t have much super. Should we be worried about this?

Jenny

Hi Jenny,

So it’s confession time at Christian Super:

“Forgive me, member, for we have sinned … we have consistently underperformed other super funds.”

For background, earlier this year 13 super funds were named and shamed by the regulator. The Government then forced these dud funds to write a letter to their (combined 1.1 million) members and not only confess their sins but recommend they switch to a better product using the Government’s YourSuper comparison tool.

Can you imagine if you had to do this to your girlfriend?

“Jenny, it’s come to my attention that I’m a jerk. I’ve underperformed for so many years that I’m writing to you today to suggest you go on Tinder and find someone who can truly listen, get along with your mother, and meet your needs without being passive aggressive.”

Personally, as a strictly low-cost index fund investor, I have very little sympathy for super funds that underperform the benchmarks over the long term.

Even so-called ethical funds like Christian Super. Fact is, there are low-cost index funds that will screen out unethical companies. Use them instead. Then donate the extra money you make to causes that you’re passionate about.

Father Warns His Son Not to Read Barefoot

Dear Scott,

I’m 17 now, and I read The Barefoot Investor for Families when I was 14. I was in Dymocks and saw your book. My dad sighed and said, “You won’t like it, why don’t you pick out Harry Potter or something”. He eventually gave in and bought it for me. I’m so glad he did, because your book started my financial journey. On my 15th birthday, I opened a bank account. Since then, I’ve invested $5000 in a diverse share portfolio (thank you, index funds!), started contributing to my super, and started a business doing data entry for medical firms. I owe you a lot.

Jed

Hi Jed

Dude, you are literally sticking it to the man … your old man!

Still, I bet he’s damn proud of what you’ve achieved: to be an investor (inside and outside of super!) and to have opened up a small business as a teenager?! Seriously, you rock.

Everyone talks about the power of compound interest, yet the truth is that almost everyone watches it pass by.

Not you.

You are setting yourself up to be a compounding machine.

DISCLAIMER: Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions.

The Barefoot Investor for Families: The Only Kids’ Money Guide You’ll Ever Need

(HarperCollins) RRP $29.99

If you have a money question, email [e-mail].

Originally published as Barefoot Investor’s three tips to beat surging food prices and reduce waste