The shocking truth is here: Eating out is draining your wallet without you even realizing it! Everyone loves eating out, including me. But it’s easy to look past the hidden impact of those delicious meals on your finances. By putting a stop to eating out, you can save money and turbo charge your journey to financial freedom. Putting a stop to frequently eating out can turbo charge your savings. We all lead busy lives, and sometimes grabbing takeout or dining at a restaurant is more convenient than cooking at home.
However, the convenience comes with hidden costs, which can quickly add up.
Two weekends ago, I went grocery shopping with my family spending roughly $200 on our weekly shopping. On the way back, feeling lazy and tired, we walked into the nearby café for a quick bite. One hour later, we had gone through 2 coffees, two milkshakes, two muffins, and three main meals, spending just shy of 100 dollars, and the mains weren’t that great either.
The incident got me thinking about how eating out is affecting my financial health and what we can do about it, especially as everything is getting so expensive in this high-inflation environment.
In this article, I will discuss the actual costs of eating out and how it affects your financial health. We will also explore how to stop eating out to save money and stop your wallet from being drained.
The Convenience Trap
It happens to all of us: you’re busy, you don’t have time to cook, so you head to a restaurant to grab a quick bite.
Or maybe you’re out with friends or family and decide to try a new spot.
Whatever the reason, eating out is super convenient, but it can also be a trap that drains your finances without you even realizing it.
More Expensive Than Cooking At Home
When you eat out, you’re not just paying for the food – you’re also paying for the convenience of someone cooking, serving, and cleaning up for you. This comes at a price that is often steep.
An article I read recently quoted an average meal eaten out costing roughly $20 per person, compared to an average meal cooked at home costing about $4 per person. I can’t say for sure how these numbers were calculated, and there will be variances for the city you live in, the type of restaurant you go to, etc.
But eating out costs roughly 4-5x the cost of eating at home does sound reasonable.
And that is just the cost of the meal. Add the cost of taxes and tips, and the cost of eating out adds up considerably.
Don’t forget; when you eat out, you will likely order add-ons like drinks, appetizers, and desserts, which all add to the cost.
Plus, when you eat out, you’re more likely to order drinks, appetizers, and desserts – all of which can add to the bill.
So, what’s the solution? Cooking at home is obviously cheaper, but it’s not always possible. If you’re short on time or don’t enjoy cooking, consider meal prepping or using a meal delivery service. I also keep some frozen ready-to-eat meals at hand for emergencies. These options are often cheaper and is the easiest way to stop eating out to save money and time.
Your 1st activity: For one month only, every time you go out to eat or do takeaway, try to calculate how much it would have cost you if you cooked the same meal at home. Don’t worry if you are not 100% accurate.
The idea is to get a ballpark difference in the costs of eating out vs. eating at home.
The Hidden Costs of Dining Out
When deciding to eat, it’s easy to just look at the menu and think of the cost of the meal itself and not count the hidden expenses that add up quickly.
Tip and Tax
This is one of the most significant hidden costs. While this expense is no secret, it is easy to overlook them when budgeting for a meal. In the United States, tipping is customary, and a tip of 15-20% on top of the bill is often expected. Additionally, taxes can add up quickly, especially in areas with high sales tax rates.
Drinks and Extras
Another hidden cost of dining out is drinks and extras. Alcohol, soda, and other beverages can significantly increase the total cost of a meal. Some restaurants may charge extra for things like bread, butter, or sauces, which can add up quickly.
Transportation and Parking
Transportation and parking is another cost that is often overlooked. If you’re driving to a restaurant, you may need to pay for parking or valet services,
Most people, including me, enjoy dining out, and it is a fun experience, but it’s essential to be aware of all costs you are up for when you make a choice to eat out.
You can enjoy a meal without breaking the bank by working out the actual cost and budgeting for tips and taxes, being mindful of drinks and extras, and factoring in transportation and parking costs.
Your 2nd activity: For the next month, calculate the added cost of dining out, such as taxes, tips, drinks, transportation, etc., and add it to the cost of eating out you calculated in the 1st activity.
Now you can calculate the total cost of eating out (including hidden costs) vs. if you cooked at home. Multiply the difference by the number of times you eat out in a week, then multiply that by 52.
So, let’s say eating out costs an extra $75 for a family of 4, and you eat out once a week – then you are basically spending $75 * 1 * 52 = $3,900 eating out vs. eating at home.
Now, I don’t know about you – but for me, doing this activity opened my eyes to what I was actually spending and the amount of money that could be saved by limiting my dining out habit. And it’s not just dining out; think about those coffees on the go, a quick burger or a sandwich, a packet of chips, etc.
The Health Costs of Eating Out
It is a fact that eating out too often can have serious negative impacts on your health, leading to bigger medical bills down the line.
There is no point in having a lot of money if you don’t have the health to enjoy that money.
Increased Risk of Obesity
Obesity is the most significant risk of frequently eating out. When we eat out, we tend to indulge, consume more substantial portions and meals, and eat a diet higher in calories, unhealthy fats, and sugar than we would normally eat when we dine at home.
Have you ever been to a work lunch or a conference where the meal was paid for? It happens to me often, and I end up eating a lot more than I usually would.
Why not? It’s free, after all. But in the long run, the health impacts and the monetary impact of those are mine and only mine to bear.
Over time, obesity is linked to health problems, including heart disease, diabetes, and high blood pressure.
Greater Exposure to Unhealthy Ingredients
When you cook at home, you control what ingredients go into your food. Usually, at home, we use fresher, healthier, and even organic ingredients with fewer artificial additives.
Many restaurants use pre-packaged and highly processed ingredients high in preservatives, added colors, salt, sugar, and other unhealthy additives.
Many seemingly healthy options, such as juice, milkshakes, and salads, are loaded with sugar and salt in the form of dressings and toppings.
Increased Risk of Foodborne Illness
This risk can usually be minimized by eating at more high-end places, but that comes with added cost.
But generally speaking, eating out can also increase your risk of foodborne illness. By eating at restaurants, you are putting your trust in the hands of strangers who may have different hygiene standards or food safety practices than you do at home. This can lead to severe illnesses like salmonella, E. coli, and norovirus, which can be costly to treat and even lead to hospitalization.
So, while we all love eating out, it is at least important to be aware of the potential health costs. I know realizing these will not stop you or me from eating out – but as long as we are aware of the risks it poses, we can choose potentially healthier options and minimize them.
After all, risk management is not only to be used in our financial affairs but in all aspects of our life.
How Peer Pressure and Social Expectations Can Lead to Overspending on Dining Out
As a society, dining is often associated with socializing and having a good time. We go out to eat and drink with our friends, family, and colleagues to bond, celebrate and catch up. We go out on festivals, birthdays, anniversaries, and any occasion worth celebrating.
However, this peer pressure leads to overspending and emptying our wallets without us even knowing it. Stop eating out to save money and invest in experiences that truly matter to you.
The Peer Pressure
Have you ever been out with your friends, and they suggest going to an expensive restaurant you can’t afford? Or have you ever felt uncomfortable splitting the bill equally when you only had a salad and everyone else went all out? Peer pressure can be a significant factor in overspending on dining out.
It’s normal to want to want to fit in and not be the one to spoil the fun. However, it’s also important to remember that your financial health should always come first. Don’t feel pressured to go beyond your budget; speak up if you need to.
The Social Expectations
We often set social expectations for ourselves and others when it comes to dining out. For instance, you might feel like you have to order an appetizer, entree, and dessert when dining out, even if you’re not that hungry. Or you might feel like you have to go to a fancy restaurant to impress your date or colleagues.
However, social expectations can turn out to be expensive, and they’re not always necessary. You don’t have to follow a specific dining-out etiquette to fit in. You can order what you want, skip the extras, and choose a restaurant that fits your budget.
So, What are you to do?
The key to not overspending on food is to be conscious of spending habits and prioritize your financial health. You can still enjoy dining out with your loved ones while staying within your budget.
Start with setting a dining-out budget for yourself, keep a list of affordable restaurants handy, and be honest and upfront if you can’t afford a particular restaurant or dish when visiting with others.
Always follow the rule – dining out is a luxury, not a necessity, and it’s okay to say no sometimes.
So, What Can You Do To Stop Eating Out To Save Money
Going out to eat can definitely be a treat for your taste buds and even help us relax. However, if you are not careful, it can also drain your wallet. Fortunately, some alternatives can help you save money and still enjoy delicious meals.
Cook at Home
This is my favorite go-to option, especially since everything has started to cost so much more post the pandemic. With the now work-from-home lifestyle, I have a lot more time on my hands to cook at home. Stop eating out to save money and start enjoying the satisfaction of cooking your own meals.
Not only is it cheaper, but it also allows you to control the ingredients and portions. You can plan your meals ahead of time, buy groceries in bulk, and experiment with different recipes. Cooking at home is also a fun activity I enjoy with my two small children.
Meal Prep
If you have a busy schedule, meal prepping can be a game-changer. This involves preparing your meals ahead of time, usually on the weekends, and storing them in containers. My wife and I used to do this before 2020, as we both worked five days in the office, and time at home was in short supply. We often cooked for 4-5 days and put it in the freezer.
We do less of these now as we work from home most of the time, but I still sometimes prepare in advance, like chopping vegetables and storing them.
Pack Your Lunch
This is a big one. Eating your lunch outside every day can be a considerable cost. Just calculate your weekly lunch cost and multiply by 52 if you work full-time. Packing your lunch has to be the simplest way to save money.
At least dining out with family and friends serves a social purpose and is often enjoyable. But eating out at work is primarily a hassle with long wait lines and limited options.
If you are going to follow only one piece of advice in this article, I will say packing your lunch Is number one.
Utilize Meal Delivery Services
If you don’t have time to cook or meal prep, meal delivery services can be a convenient alternative. Many options are available, ranging from pre-made meals to meal kits with all the ingredients and recipes.
While these services can be more expensive than cooking at home, they can still be cheaper than eating out at restaurants.
Attend Potlucks or Host Dinner Parties
Attending potlucks or hosting dinner parties can be a fun way to socialize with friends and family while also saving money. You can assign different dishes to each guest, ensuring a variety of flavors and cuisines. Plus, it’s a great way to showcase your cooking skills and try new recipes.
Conclusion
Eating out is a common habit that can unknowingly drain your wallet. By planning your meals, cooking at home, and tracking your spending, you can save hundreds of dollars each month. I hope this article has opened your eyes to the actual cost of eating out and inspired you to change your lifestyle positively. Remember, small changes can make a big difference in the long run. So, start today and enjoy the benefits of a healthier, more budget-friendly lifestyle.
Do you have any tips to stop eating out and save money? Share in the comments below.
