Paying more for food usually has diminishing returns; the difference in quality between a $3 box of cereal and a $4 box of cereal is more than the difference between $4 cereal and $5 cereal.
Depending on how much grocery money you have, then, you can optimize purchases for the best balance quality and price. After a couple weeks of eating PBJ sandwiches, I think a loaf of bread is best in the $1.50 to $2.00 range-- the stuff I've bought below that price is much worse but I can't taste much improvement past the $2 mark.
I don't think I've ever bought peanut butter I don't like, so now I just need to find the optimal jelly price and I'm set.
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