Yahoo Finance I Cut My Budget for Dining Out From $800 to $450: Here’s How I Did It
Would it surprise you to hear that the average American spends $166 per month dining out? It’s true! According to a 2023 US Foods survey, consumers currently shell out nearly $2,000 annually to eat food someone else prepares.
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That’s a lot of money that could be used to pay off debt, make a down payment on a home, or take a dream vacation. Fortunately, if dining out hurts your budget or derails your financial plans, you can reduce the expense.
We talked to a consumer who did just that and has agreed to share her experience. We also compiled some expert advice to help you keep your restaurant and takeout spending in check. Let’s dive in!
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Lauren Bowling’s Story
Lauren Bowling, blogger at Financial Best Life, had just gotten divorced and was starting to enjoy her social life again. She got to a point where she was eating dinner out almost every evening, which was costing her roughly $800 per month.
Eventually, she realized, “That amount of money per month just wasn’t in the budget. I also wanted to cook more meals at home in order to eat healthier for my son and involve him in the kitchen more.”
Bowling took several steps to control her restaurant spending. She said, “Honestly, it sounds so simple, but meal planning and shopping my freezer [and] pantry before I make my grocery list have made the largest difference.”
She also discovered her ideal way to cook at home. “I found I can be successful with crock pot meals — because you can set it in the [morning] and have leftovers afterward, and there isn’t much ‘active time’ spent cooking.”
Finally, Bowling committed to prioritizing how she spends her dining out budget. “I’ve also had to remind myself that I can’t say yes to every invitation or whim to eat out (like I did before.) When I’m tired or don’t feel like cooking after a long day, I remind myself that if I say yes to takeout in the moment, it means a no in the future when I could be out with my favorite people.”
Her efforts have paid off in a big way. Bowling has cut her restaurant and takeout expenses nearly in half to a more manageable $450 per month.
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Expert Tips To Save on Dining Out
You can achieve results just like Bowling. There are lots of strategies you can use to save money on dining out, but they generally fall under one of these four umbrellas.
Choose DIY Meals
Preparing meals at home is generally cheaper (and often healthier). Bobby Warren, owner of Playing with Pizza, now spends much of his dining-out budget on pizza ingredients and makes the dish two to three times per week. Plus, he said, “My wife bought me a carbon steel wok for Christmas 2023, so I have spent a lot of time learning how to cook Chinese food at home.”
Cooking dinner every night can also be challenging, though — especially if you have kids. Rebecca Conner, CFP and founder of Seed Safe Financial, said she makes it work in her home “by weekly meal planning, making sure we don’t run out of options, and buying more pre-cut vegetables that make cooking easier.”
Time Your Treat
If you decide to dine out, you can save money by visiting your favorite eateries when they’re running deals. Todd Bryant, CFP and partner at Signature Wealth Partners said, “See if they have any certain nights of the week or month in which they offer promotions. For example, a local great pizza place offers a free cheese pizza with the purchase of any other pizza every Tuesday night.”
Bryant suggests that you can also save money by attending happy hours or trivia nights. In addition, some restaurants allow children to eat for free on a particular evening (usually a weeknight).
Pro Tip: Going out for lunch will often cost less than going out for dinner, according to Nathan Mueller, financial coach and founder of BlackBird Finance.
Eat (and Drink) Less
Even if you go to the most expensive restaurant in town on a Saturday night, you can still be budget-conscious by ordering less. Mueller said, “Save money by skipping the drinks. Most adults grow accustomed to having an alcoholic drink or a soda when they go out, but if you want to save money and eat out, this one [tip] can significantly cut down on the bill. Add some flavor to the water by asking for a lemon slice.”
However, if you really want to enjoy a glass of cabernet with your steak, Bryant suggested bringing wine with you. “Wine is always more expensive at restaurants. See if the place you are going allows you to bring your own bottle. You’ll pay a corkage fee, but [will] still most likely save a ton of money,” he said.
In addition, since many restaurants serve large portions, consider visiting one that offers half-size (and thus cheaper) entrees. You could also say no to an appetizer or dessert, further reducing your bill.
Dine Out Intentionally
Many people go to a restaurant or have food delivered because it’s convenient. Some also view eating out as a form of entertainment or social enrichment. In either case, the activity can become a mindless (and expensive) habit. You can curb this by selectively dining out when it matters most to you.
Brittany Wolff, CFP and owner of Wolff Financial, advised, “Make a goal of eating out a certain number of times per month that fits your budget and be very intentional about where you go. A few fast food runs can easily add up to equal a nice meal out.”
Conner agreed, saying, “We decided to align our values with our eating out. We love eating out when it is to celebrate the end of the week, try something new, or enjoy a quality meal with friends and family.”
Why You Should Cut Back on Dining Out
Though it may sound counterintuitive, Conner said, “Not everyone should reduce their dining-out expense. The goal is to not look back on your dining out for the year and feel you ‘wasted money.’ If you feel like you are wasting your money and would rather spend it (or save it) towards other things in life, this is when reducing dining out makes the biggest difference in your life.”
Other experts take a more direct stance on the matter. For instance, Terry Parham Jr., CFP and co-founder of Innovative Wealth Building, said, “People spend a lot of money dining out. Seriously, most people spend more dining out than they do saving for retirement. Step back and ask yourself — which one is more important?”
Pro Tip: If you’re retired and money is tight, dining out is one of the first expenses you should reduce.
Bryant thinks you should limit your restaurant and takeout spending “because so many other monthly expenses have increased (some substantially) in the past few years alone.” He recommends making a monthly budget, sticking to it, and definitely not overspending on budget items like dining out.
What To Do With Your Savings
Reducing your takeout and restaurant spending can give your budget lots of wiggle room. As you notice the extra money in your bank account accumulate, try using it to bolster your emergency fund, invest for retirement, or achieve another financial goal.
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This article originally appeared on GOBankingRates.com: I Cut My Budget for Dining Out From $800 to $450: Here’s How I Did It
