How much money do you spend on food each week? According to an article on the Huffington Post website, Americans on average spend roughly 10% of their income on food. Based on a chart at Flowing Data this is split almost evenly across the country between groceries and dining out. Although there will be variances across the board, most people tend to eat at home at a much higher rate than they do eating at restaurants; a factor showing the huge discrepancy between the prices of home cooked meals and those eaten in restaurants.
Using a conservative (very conservative) figure, let's suppose it costs twice as much to eat out as it does to dine in the comfort of your home. If a person in Houston, TX who on average spends $5,903 a year on food ($2,950 dining out and $2,953 at home) were to eat exclusively at home, then they could on average save $1,475 a year.
Depending on how much you spend on food, one could potentially save several thousand dollars in just a few years. Using the example above, our friend in Houston could potentially save over $14,000 in just 10 years. Assuming he invests that money, he could be sitting on $20,000 to $30,000 when interests is figured in. The problem is that if we were to completely ditch the fast food and dining out, life might become somewhat boring over time. I'm not suggesting you forego dining out completely, but rather change some of your habits when it comes to enjoying some cuisine while out on the town. In the next few paragraphs I'll give you some ideas on how to save money.
A Steak for Half the Price
I have eaten in a plethora of steak houses over the years. One thing I have found in common in all of them is that they always offer a free salad bar with the purchase of a steak dinner. Another thing I have found is that they all have great salad bars stocked with everything you need to make a great meal: vegetables, fruits, cheeses, meats, pasta, etc. Since the steak dinner itself usually comes with a potato and vegetable, and thus is also a meal in itself, we are getting two meals for the price of one. The unfortunate thing is that most of us don't take advantage of that. We usually nibble off the salad bar and then stuff our faces with the steak and potato. We go back home fat, happy, and broke. Since you are getting two meals in one; eat two meals. Eat off the salad bar until you are stuffed to the gills then grab a doggy a bag and eat the steak, potato, and greens at lunch tomorrow. Granted a microwaved steak doesn't have the invigorating juiciness of a freshly simmered fillet, but you're getting a $25 steak for $12.50.
Nowadays in America one would be hard pressed to find a restaurant that doesn't offer free refills. While nearly unheard of in most other countries, (Believe me, I've asked for free refills and with a glaring of eyes was informed I must be the biggest idiot on the planet. Free refills, indeed.) it is something that every true blooded American must take advantage of while at home. Don't get me wrong, I'm not advocating contributing to the obesity problem we have, but rather to responsibly enjoy the privilege. Instead of purchasing the large container, buy the small and get the free refills. Why pay $2 for a large when you can pay $1 for the small and refill it?
What's in a Name?
You've often heard the old saying that when you buy an expensive product, you are usually paying for the name and not necessarily the quality. While this can be true in many cases, another old saying that says you get what you pay for is just as relevant. Buying a mixture of name brand and generic products can save you money while allowing you some of the pleasures in life. A good thing to remember, just because you buy cheap doesn't mean you are saving money.
When I was in college, I was broke. (Who isn't?) In an attempt to save some money I decided to start using powdered milk. I mixed a glass according to the instructions on the box only to find out that what I now had was not much more than plain ole water with a little bit of white food coloring in it. Absolutely no taste. I added a little bit more powder to no avail. I kept adding. By the time I finished adding enough powder and sugar to get even vaguely close to a real glass of milk, I was spending twice as much money as I would if I had just bought a regular gallon of milk. On another occasion I gave saving some green a whirl by purchasing some generic peanut butter. It was the nastiest tasting goo that had ever forded my lips. It was a good addition to my trash bin.
While using generic or cheaper brands isn't for everyone, if done correctly, you can save money while still enjoying the "finer things in life". Following are a few examples:
Use name brand products for eating; use generic brands when used as an ingredient for cooking.
PBJ sandwich - brand name; peanut butter cookies - generic)
Use milk for drinking, but use powdered milk to make hot chocolate.
Drink brand name juices while reserving the cheaper brands for making punch.
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