We still struggle (a lot) with the grocery bills. We are nowhere near $500/month with our family of five. Does this include things like paper towels, toilet paper, soap, shampoo, deodorant, etc., etc.? Sometimes, our grocery store has a better price than places like Target, so we sometimes buy these items at the grocery store.
You and UCGal were really inspiring me to become more thrifty with groceries, but it’s just not happening in real life. It might not help that we often have other kids here for dinner. We love having others over to eat, so won’t give it up, but it does affect our bills a bit. I still think that our family is the main culprit, though; we really like good food.