How Eating Out Keeps You Poor!

How Eating Out Keeps You Poor!

I just love this place, don’t you? I know it’s kinda expensive, but everything’s
so top notch! Hey folks. Know what you want? Yes! I’d like to eat the Down Payment on a House,
with a side of flambeed Emergency Fund. Excellent choice. And for you, sir? I’m pretty hungry, so I’m gonna have Our
Retirement Savings, and… what the heck, a bottle of Our Daughter’s College Tuition. Very good. Do you think we spend too much dining out? Maybe… but everyone else is doing it. Besides, what’s the alternative? Cooking at home? At least the breadsticks are free. 21% of Americans have no retirement savings,
and another 10% have less than $5,000. It’s even bleaker for millennials: nearly
6 in 10 have nothing saved at all. Now, there are a lot of reasons for this:
the increasing cost of housing, health insurance, and of course, student debt. But for many people, those costs are relatively
fixed. If you’re looking for practical areas to
cut back, one sticks out like a fly in your soup: DINING OUT. In 2015, for the first time in history, Americans
spent more money on bars and restaurants than on groceries, with the average household now
spending more than $3,000 annually on “food away from home,” representing between 5
and 7 percent of their total spending. Even though restaurant prices are increasing
faster than inflation, and grocery prices are holding steady–or even falling!–the
average diner is still eating out around 5 times a week. How much is this costing us? Well, restaurants typically mark up their
food by around 300%, meaning the price on the menu is about 3 times what they actually
spent on the food. If that seems like a lot, remember, you’re
also paying for the restaurant’s rent, labor, equipment and overhead. So if you live in an area where real estate
values are increasing, that also applies to the surface area of your local restaurant’s
tabletops. And that doesn’t even include drinks! A survey by Zagat found that the average restaurant
bill per person is over $36. If you do this just 3 times a week, that’s
over $5,600 a year! By contrast, the average meal cooked at home
with groceries from the market is about $4 per person. Now you can see why so many financial advisors
focus on dining out as a place to save money. How much money could you potentially save? I think it’s time to…. Run the Numbers! Let’s say Jake here goes out for dinner
3 times a week, spending $35 each time. He starts every workday with a latte and croissant
at his local coffee shop and buys lunch at the local food court 4 days a week
(Fridays are pizza day at the office). In one year, he’s spent over $9,000 on commercially
prepared food and drinks–over 12% of his yearly salary of $75,000. What if Jake could get those 3 dinners down
to just one a week? And what if he started making coffee and breakfast
at home, and brown-bagged lunches at work? Assuming that all those homemade meals would
come out to around $5 each, that would mean a yearly savings of $4,420! That’s enough for a Hawaiian vacation! But wait, we’re not done! What if Jake took those yearly savings and
put them into an account earning 7% compound interest? In just 10 years, he’d have over $65,000. Enough for a down payment on a house! In 20 years, he’d have almost $200,000! All from just eating at home more often. Jake’s example demonstrates that even in
an era of burdensome healthcare and student loan obligations, you might have some wiggle-room
in your finances. Even a small cutback in dining out could allow
you to finally pay off an onerous debt or build an emergency fund. This might be easy advice to give, but harder
to put into practice. Many of us dine out because we’re too busy
or tired to cook after a long day of work. (if we know how to cook at all). And going to restaurants isn’t just about
the food. It’s a social event–a place to see your
friends, to connect with co-workers, to take the edge off a stressful day. So we’re not saying “never go out to eat!” But if you want to cut down on this expense,
you first have to know WHY you’re spending the money in the first place. Is it a CONVENIENCE or a LUXURY? If it’s a CONVENIENCE–in other words, if
you’re eating out because you don’t have time to cook at home, well, the problem might
just be a lack of preparation. After all, brewing a pot of coffee and toasting
a bagel can be less time-consuming than waiting in a Starbucks line. And can potentially save you hundreds of
dollars. There are lots of resources on the web for
how to make shopping and cooking cheap and simple – including this video we made about
navigating the supermarket – but if you’re still intimidated by the prospect, you could
ease yourself into it by utilizing ingredient-or-grocery delivery services like Blue Apron or Instacart. These are definitely more expensive than doing
your own shopping, but still cheaper than eating out. We like to use cash at the supermarket to
stay within a budget, but if you’re trying to incentivize yourself, you could look into
a credit card that gives rewards for grocery purchases. And it’s always a good idea to keep some
convenience foods like microwavable dinners in your freezer. That way, on days that you really don’t
feel like cooking, you’ll have an alternative to stopping for take-out or ordering in. On the other hand, if eating out is a LUXURY–that
is, if you’re doing it for social or psychological needs–there still might be ways to achieve
that with less spending. For instance, you can share an entree. Restaurant portions are typically much larger
than the average diner’s appetite, because it makes it easier for businesses to justify
high prices. If you’re there for the service and the
atmosphere, you can get that without overeating to the point of discomfort or leaving uneaten
food behind. If you have favorite restaurants you know
you visit often, it might be a good idea to sign up for their email lists or check Groupon
for details. But beware that these “bargains” are intended
to make you visit more frequently. Same goes for “diner’s reward cards”. If you’re not careful, these strategies
might actually increase your monthly dining expenses. Alcohol is one of the biggest markups for
restaurants, so if you like to have a drink with dinner, you might want to find places
that allow you to BYOB. Similarly, going to an ice cream shop after
dinner is usually much cheaper than ordering dessert at the table. And lastly, if you find yourself buying lunch
just as an excuse to get out of the office, no one’s forcing you to eat at your desk! (Hopefully.) Take your brown bag to a nearby park or public
space. It’s the same psychological benefit without
the cost. Dining out is a big part of our culture, and
it might be an important aspect of your social or professional life, so we’re not suggesting
you cut it out cold turkey. But you shouldn’t accept any large, regular
expense without asking yourself three fundamental questions: How much am I spending on this? What do I get out of it? Can I get the same benefit for less money? And that’s our two cents! Do you have any tips on how to save money while dining out? Go ahead and share them with us in the comments!

100 thoughts on “How Eating Out Keeps You Poor!”

  1. Cooking at home for a week costs the same as a single nice restaurant meal, or if you're really on a budget and really, really scrimp, even a single mid-range restaurant meal. And after you do it a little while, you'll begin to get better at cooking with practice. Then most restaurant food just won't taste as good anymore (not all of them, because there are definitely some good restaurants, but there's no way to compare a chain restaurant staffed by college kids who can't really cook except by following a recipe handed down by a manager with a good, homecooked meal!). Plus, it's fun! It's something to do with the kids or a spouse. It brings families together.

  2. I used to live in Cancun, Mexico my whole life
    It´s supposed to be one of the most expensive cities in Mexico
    For academic reasons i moved out to an small city in Veracruz called Xalapa
    But i kept my Cancun job working remotely
    This city is cheap as hell, and if you consider the cost of the ingredients for cooking your meals yourself, and then add the time it takes you to cook and clean the dishes is way cheaper to eat out in restaurants
    For perspective, you can have a good quality Lasagne, a glass of wine and 500 ML of Lemonade for 5 dollars total
    So, you can have breakfast for 1.5 dollars, and the lunch is 2 dollars
    So, you can eat great and healthy for 4 dollars per day
    The rent of the apartment where i live is just 85 dollars, it includes electricity wich is around 2 dollar every two months and water is 1 dollar every month
    I know it sounds weird, but everything is great quality, no sick stuff or something
    At the end of the month, you can have a nice life for 200 dollars
    in Cancun thats impossible, the cheapest lunch is around 5 dollars haha

  3. Gotta love how the media keeps telling Americans they're suffering from crushing debts because they enjoy small pleasures like going out for dinner from time to time instead of their fucked up economic system (stagnating wages, crazy tuition fees, insane wealth disparity) – let's all pretend people in other countries never go out for dinner.

  4. Slowly, eating out is leaving my body.

    Translation from Ghanaian English.
    (Basically I'm losing interest more and more in eating out.)

  5. Oral sex performed for a longer period of time than around two minutes is boring to me, whether I'm the recipient or the performer. Although I fail to see what this has to do with financial matters, other than one spending too much money on prostitution.

  6. The tips here are good and I’m glad they show the importance of saving money. However,, the big concept behind this is is having an overall sense of budgeting. Having your budget laid out of needs and wants allows you to sort out much more clearly weather you should be eating out or how often. It’s an easy place to cut back on but is not the whole story of savings in other words. Great video! I loved the moderate approach and channel as always.

  7. Yeah but cooking all the time is tiresome, a chore, and really the last thing you want to do after a long, stressful shift at work. Plus, it never tastes as diverse and delicious as eating out. Thank the Lord for UberEats!

  8. Eating out doesn't keep you poor, it depends on how often and how much. You can't spend 80 bucks every week on porterhouse.

  9. So… lessee… I ate out… hmm… 8 times in the past 6 months.

    Great. And the average I spent was roughly 8 USD. Yes, I can see enormous savings in my future.

    Wait, no. I also bough pizza twice. Dangit. There goes my money down the pizza drain.

    I'll go and cook myself something to eat now…

  10. eat before going out with friends. that way you still get the social aspect without having to purchase an entree. get an appetizer or dessert if you are still hungry. i do it and come away with a $5 tab instead of $25

  11. I eat out at least twice a week and my wife is super happy about it. She loves it!

    – Innkeeper Vase Odin

  12. Eating out is like acting rich because you have people waiting on you at your feet,so if you do it constantly AND your NOT affluent(rich),well guess what!!,it’s the poor house for you

  13. Oh! I get it! They’re cosplaying as their parents as seen in old photographs, so they can give us the advice we so sorely need. (No, seriously. We need it.)
    That’s why it makes sense that he’s got a Diner’s Club card…..

    …because he’s living in the goddamn 1970’s where that’s still a thing people don’t consider insane.

  14. You can eat out but in moderation. In order to keep your costs low. Here are 3 tips !!!
    1. Only buy water!!!- you would be surprised by how much your bills go in once you add soft drink or alcohol.

    2. Don’t get starters!!!!- once I eat starter I won’t eat my main because I’ll be fill already. So usually my main is left 🙁

    3. If you have left overs!! Pack them!!- don’t waste food since you paid so much!.

  15. In my case, eating out saved me a lot of money. But that depends on what country and region you live in. I have a lot of restaurants closeby and the ''menu of the day'' costs the equivalent of 4 dollars and the food is excellent. I go out at noon and buy it, I have to chose from a variety of dishes and I get first course, second couse, salad, desert or fruit and bread. This is how I have food for the entire day. When I was cooking myself everything cost a whole lot more.

  16. Just found your channel today. Great content. Would like to add a point. If someone is dining out for social and psychological needs or outings, he/she might arrange for a dinner at home where friends bring over home cooked food and he/she also makes one or two dishes. Later on this could happen at some other friend's place. By the way, I'm from India, donno whether this is a practical solution in the US.

  17. 7%! 7 trukin perrrrrrcent. Seeeeeeeveeeen pcent. Yaaaaaa wat nowwww. Who, whhhhhhat pays 7even p%rce%t???? Mythical s7ven pcent pls visit me.

  18. Im always curious how is possible that in 2020 people around the world need to be taught that cooking at home is cheaper than eating out.

  19. Yeah, that's right!!! Save up all your life so that you can spend all your money on your funeral!!! I believe the solution is moderation, not being stingy.

  20. No TV, No Credit Cards, No Dinning out ever, No concerts, no children, No wife's, No pets, No plants never go out at night ever.. Now I own 3 business, 2 houses, a farm, and all most debt free plus cash rich. Go figure.

  21. Restaurant food standards have gone down. Cheap ingredients are used and fillers and taste enhancers as well. I could understand if the food was good but it is not good anymore, not the way it used to be, for the most part, there might be exceptions. Grow your own food and supplement with purchased food from 1st a farmer market and 2nd a store. Food bought at stores I have noticed the quality has diminished. Hopefully this will spur local growers to grow locally delicious organic food! This can replace the depleted sub par food shipped from 1000s of miles away.

  22. Preach bro, I know so many people who make way more money then me, I'm talking tens of thousands more a year. And they always complain about not having money, can't afford to have fun like going to the movies and what not. Skip the dishes and uber eats are the top apps on they're phones, they wear expensive clothes that look stupid and they spend tons of money on expensive concert tees that make them look like a poser. Meanwhile I eat at home, make awesome clothes at home for cheap and I don't bother to go to big concerts and I never have money problems, I have a pair of hi top airforce, docs originals and hi top vans, all the most expensive shit in my war-drobe and I can go to a movie or a bar show or whatever I want whenever

  23. Here's some tips: Get together with money saving friends and have a potluck dinner once or twice a week. Also twice a month a group of us have a freezer cooking day where we make big batches of casseroles, ect and put them in freezer containers to be warmed up later. All the recipes are agreed on ahead of time and the expense is pretty equal. Not only are these a social event but it gives a better variety to our diets. I hope this is helpful 🙂

  24. but to save any money by cooking at home you have to not be single, because everything is sold in bulk or inflated to the point of being dumb. Then you still have to eat leftovers. Eating out every meal, I spend about $40 a day, and have three different meals. Cooking at home, I walk out of the store with one meal in one bag, having spent $50. Sure, I've got some extra veggies and other randomness and some left-overs, but they usually don't get used before they go bad, so it's really just a waste. Then you have to factor in electricity, water, and gas usage, as well as soap, the cost of utensils–because I really want melted cheese, but don't have a double-boiler–and your time. I guess I could eat hamburger helper everyday, that's only about $10 and I get two meals, but if I want something that's actually good, it's really 6 of one and half-dozen of the other.
    And where the fuck do you live that $65k is a goddamn down-payment, and not just the price of a house? Sure, it's no mansion, but it's four walls and a roof. Oh, that's the problem, you're going to Urasawa, not BK.

  25. What an idiotic video. Maybe what keeps some Americans poor is how primitive their social system is, not going out once in a while. No universal system of pensions (retirement) or healthcare.

  26. The 7% compound interest assumes you want to gamble your money in the stock market. I can't afford to lose my savings on a gamble. I just eat at home and keep my money in the bank. Who knows when the next 9/11 is going to be.

  27. Oh, eating out at restaurants! I thought this was about my favorite thing to do with a jar of honey.

    Yeah, I actually care about my diet, so groceries cost me about $15 a day. Your numbers probably came from Walmart or something.

  28. Two years ago I started cooking, I lost almost 40 lbs, doing the math I realise that I've have saved over $5000 Per year.

  29. Totally agree, in France we do not eat out that often, and for many reasons : at home (or at friends' home) you control what you eat, usualy it's healthier, and of course cheaper, much more. No wonder there are so many overweight people in the US, and strangely the higher the education, usually the thinner the people are (can be verified almost everywhere on this planet). Unfortunately we have been visiting places in America where it was kind of difficult to find healthy/organic/etc. food, that might be a big obstacle to achieve what has been advised on that video. Great channel anyway.

  30. From London Brixton. UK. I dine out at food waste cafe & restaurants. The food is donated & u pay what u want.

  31. I discovered a great cookery channel ‘Marions kitchen’ and ever since then I’ve been cooking delicious food at home, breakfast lunch and dinner. My biggest expenditure after bills is actually food and coffee out, it doesn’t make it easier that I live in a very expensive wealthy part of the city where a cup of coffee can be as much as £5. I also brew my own coffee at home, I treat coffee out as a treat now. I bought two slices of cheesecake for £1.25 each from the supermarket and my own tea £0.20, while if I had that out the total would’ve been £7. Just not worth it.

  32. I have so much trouble convincing people I know to not eat out. They consider it an easy way to get everyone to gather, but restaurants costs more than groceries. I think it is good to treat yourself to eating out at a great place every once and a while, but it is also important to be learning to cook, to spend money on better quality groceries, etc. And I do not understand why people think getting cheap fast food multiple times a week is okay when it adds up to large amounts of money and does not even taste that good.

  33. My husband and I only eat out at a sitdown restaurant for special occasions (birthdays, anniversaries) but mostly we eat what we make at home. It’s healthier & you do save a ton of money. That’s how we go on a yearly vacation.

  34. It is insane for me as a Russian. We almost never eat out, really, it is a special occasion, maybe 1 time in a week if you not broke, maybe in several weeks or in a month. Everyone is cooking fot themselves.

  35. All the money in the world they save cant stop them from looking like a grandma trapped in a 40 year olds body and a less athletic gardner minshew wannabe high school gym coach

  36. There r lots of cheap places u can eat out too. I recall an Indian place near the world trade that charges $3 for the meal n $1 for the soda 🥤

  37. Everyone should know how to cook for themselves. Learning is a lifelong pursuit. Many of us enjoy it. Home prepared food is almost always healthier. Start with one recipe and build from there.

  38. Oh sorry, I came here looking for the video on "How your ghoulish need to hoard money is keeping you in a hellish limbo between life and death."

  39. That’s great advice for all . The reason that we cook at home is to relax and bless people. We never buy coffee or drinks out as we are never that thirsty that we cannot make it home. We buy extra groceries and food so that we have food for visitors and people calling.When we go on long journey we make sandwiches and packages of food that will sustain us. We never buy airplane foods we are able to fast as we have disciples in our lives. We are often invited to have food with friends and we always end up inviting the same home for dinner and food. We are now in a position to feed the hungry and house the homeless.and get people back on their feet. Lots of poor have poor ways.and need to hear the truth in love. We are never that hungry that we cannot make it home for a nice cup of tea in comfort and security. Love from Ireland

  40. Take those savings and put them in a high yield savings account! Those regular savings accounts arent helping you. 3 cents of interest is pointless

  41. Random question: who is going to cut out coffee, lunch purchased at work, and dining/drinks that significantly for ten years? If you’re eating out that much to begin with, it’s probably something you do to socialize with others. I could see that working for some for one to five years but who would stop eating out and getting coffee for 10 years?

  42. I eat out everyday. I spend less than $5 each time. 7 days x $5 = $35 a week. Most days that is the only meal I eat. If I get hungry at night top ramen with cabbage and an egg.
    Eating out can be cheaper if you eat normal trying to be fancy will cost you. It's like shopping be fancy at "Whole Foods" be normal at "Walmart".
    Your money do what you want. Go buy that Porsche when a Ford focus will work. Get that 1Mil home instead of the 125g. Pay $36 per meal like these guys say when 4 for $4 exists.

  43. I understand their point, but they need to also factor shopping time, prep time, cook time, clean up time, dishes time and all the costs and energy that go into the whole process. They only compare one factor.

  44. Dont think you are wasting money by eating out . Think you are supporting resturant workers family. In return workers family might be spending money in your business product or your boss business products .

  45. Tip: Each time you feel like eating out, put the money you're going to use into a fixed deposit account. That way you're not tempted to break your stride 😎

  46. Life is filled with disappointments and compromise. Going out and treating yourself to a little meal keeps things interesting.

  47. Single, I was spending too much on groceries, throwing out food gone bad, sick of keeping kitchen clean, so buy frozen as they suggest but decided to start eating out more often too. I usually bring half the meal home for a 2nd meal, and I do pickup sometimes so don't always have to tip. Also ask for gift cards for birthdays, Christmas to restaurants.
    But biggest thing I've saved thousands on over the years, is simply ordering water. I dare you to add up your tea or soda expenses over a year. I refuse to pay $2.00 for tea, or soda. I can make an entire pitcher of tea on 1 big tea bag for 20 cents at home. And soda with high fructose, is so bad for pancreas, and increases your calorie intake per meal in a huge way. With "free re-fills", no wonder people are overweight with diabetes. I don't make much, but have more savings than people I know that make 4x more than me.

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