Short version: Yes, but hear me out.
If it was all "just food," Marie Antionette wouldn't have said, "Let them eat cake," which she didn't actually say, but that's a different story.
When I first started coaching, I didn't have a fully fleshed-out budget template. Stupid, I know, but it gave me something incredibly valuable: insight into how people thought a budget should be made.
Lots of people lumped restaurants, takeout, groceries, and coffee into one FOOD budget. They couldn't figure out why they kept spending so much money on food.
Even now, while people are using my budget template, I get asked if and why they should separate out a takeout, eating out, or restaurant budget from a grocery store food budget. It's not a stupid question. It's a normal question.
It's all just food, right? WRONG.
If it was all "just food," Marie Antionette wouldn't have said, "Let them eat cake," which she didn't actually say, but that's a different story.
Think of food in tiers. Steak and beans don't cost the same, right? Right. You know that already.
Bottom line: Eating at home costs much, much less than eating out. Separate your grocery budget from your eating out budget, so you can see the profound difference in cost.
There are also tiers for each type of food. When you go out, you're paying for preparation, presentation, and service on top of the food you ordered.
Text copied below for those on readers:
FOOD: Know the Numbers
Nice Restaurants
Restaurants charge a premium on service and quality. At a nice, sit-down restaurant, a single meal can cost $40-$100 before adding a tip.
Chain Restaurants
Chain restaurants can charge less, as their menus are more standardized. They're a little more cost-effective at $18-$40 per plate before tip. My favorite chain is Bertucci's near Boston.
Takeout Places
Takeout or pizza places can be mighty tempting after a long day. Who wants to cook? Let's order out! Takeout costs $8-$20 per plate from an average place.
Fast Food
Fast food sounds great when you're moving from one thing to the next to the next. You don't have time and you're hungry. Fast food costs $5-$10 per meal on average.
Home Cooking
Cooking or baking at home can save you oodles of money. It costs as much or as little as the ingredients you buy. We eat well at our house and it costs on average $1.50 per plate per person every day.
Bottom line: Eating at home costs much, much less than eating out. Separate your grocery budget from your eating out budget, so you can see the profound difference in cost.
Eat at home more often to save more money.
If you're in a place where all of this feels overwhelming or you just want a second set of eyes on your budget, please reach out. Saver Street is here to help you earn more, save more, and give more (eventually).
Book a complimentary consultation with a financial coach at saverstreet.com.