Food versus Retirement

[maat55]

I was at Barnes and Noble recently and as usual I made my way to the personal finance section. While thumbing through some books contents I notice a chapter called "Oh no, I can't retire I was out to eat".

It rang a bell in my brain due to one of our luxuries is going out to eat. As I thought further, I was wondering how much people spend on food(groceries and eating out). I'm sure that I could curb my food budget substancially if need be for getting out of debt or building retirement savings.

I, like many here, are conscience of our budgets and most likely prioritize retirement, but in normal america, I wonder how many people do not realize how much they spend on food while they are living check to check, paying high interest on debt, not saving for reitrement or even living on government assistance.

Just for fun, how much would you guess you spend, over what you consider basic survival expense, for your food needs?

I'm guessing about 300 to 400 per month for I and DW. This would include groceries and eating out(which would include an adult beverage ot two). Keep in mind, table portions size.

[MaxPowers]

I am single. I calculated this for myself a while ago. I eat cheap. I sometimes treat it as a hobby or a challenge to find the best price/nutrition/taste balance. On a normal day I would spend $7 on food. I get take out or go out to eat about once a week. (+$10) Another $20 a month at the bar. So I spend between $250-$300.

[maat55]

Originally Posted by MaxPowers

I am single. I calculated this for myself a while ago. I eat cheap. I sometimes treat it as a hobby or a challenge to find the best price/nutrition/taste balance. On a normal day I would spend $7 on food. I get take out or go out to eat about once a week. (+$10) Another $20 a month at the bar. So I spend between $250-$300.

If you had no other way to fund retirement, how much of your food/beverage budget could you cut to do so, per month?

[MaxPowers]

The minimum would be $6 a day, and no extras like going out.
$1 breakfast
$2.50 lunch
$2.50 dinner
I could also cut back by not eating breakfast or lunch every day. Which I do anyways. It is usually one or the other.
so less than $180 a month

[Seeker]

Guess I'm not entirely understanding this thought Maat.

I'm 51, and my food consumption has drastically been reduced this last year.

Mostly because I really don't feel as hungry as I used to and I know my metabolism has slowed down.

I get enough good food to sustain me. Probably too much sometimes. Almost always when DH & I do go out to eat, I end up with more than half boxed for later, or for the next day.

I expect that as "retirement" approaches, most of my needs will be filled by fruits as I've been tending away from meat and dairy for awhile. I sorta mostly like veggies steamed and mostly raw.

When the job goes away, I don't think that my caloric needs will remain the same as now either. As we age we just NEED less food.

Also when retired I expect to have more time available to shop for the best grocery sales and also hope to have a house (with real land; not community property) where I can plant and grow stuff as I used to when I was going to 5th/6th grade, Junior HS and High School.

I guess my point is that I'm not really seeing money for retirement or money for food as really ever being in contention with each other.

Food just does not cost that much. Some of retirement means going out there and doing things, but not all of it. Some of retirement is just doing hobbies (mine are not expensive at all), and just taking it casually and easily.

[disneysteve]

Originally Posted by maat55

If you had no other way to fund retirement, how much of your food/beverage budget could you cut to do so, per month?

That's an interesting question, but the same could really be asked about any area of spending. Yes, we could cut food spending but we could also cut travel spending, entertainment spending, clothing spending, etc.

We eat out fairly often and that is all "want" not "need" and could be eliminated if necessary. I can't give a dollar figure as I don't track it but I'm sure it is at least a couple hundred per month.

[krantcents]

Originally Posted by maat55

I was at Barnes and Noble recently and as usual I made my way to the personal finance section. While thumbing through some books contents I notice a chapter called "Oh no, I can't retire I was out to eat".

It rang a bell in my brain due to one of our luxuries is going out to eat. As I thought further, I was wondering how much people spend on food(groceries and eating out). I'm sure that I could curb my food budget substancially if need be for getting out of debt or building retirement savings.

I, like many here, are conscience of our budgets and most likely prioritize retirement, but in normal america, I wonder how many people do not realize how much they spend on food while they are living check to check, paying high interest on debt, not saving for reitrement or even living on government assistance.

Just for fun, how much would you guess you spend, over what you consider basic survival expense, for your food needs?

I'm guessing about 300 to 400 per month for I and DW. This would include groceries and eating out(which would include an adult beverage ot two). Keep in mind, table portions size.

My entertainment (includes meals & movies) budget is around $200-250 per month. Since I am maxing out my retirement accounts, I am not concerned.

[maat55]

[quote]

Originally Posted by Seeker

I guess my point is that I'm not really seeing money for retirement or money for food as really ever being in contention with each other.

I fully expect the regulars here to not have a contention between retirement savings and food consumption.

What I have noticed is that there is a sizable difference in many peoples spending from basic food intake to normal intake.

IMO, a lot of people spend far more than they think on food and beverage luxuries that could be funding other more important areas.

I look to myself as an example. We spend far more than necessary for groceries(despite we buy household goods as well) and even though we share a meal out to eat, our bill, after an adult beverage, could have been smaller.

When I look at our overall spending I see that we are blowing more than we might think. I do not get that concerned about it due to I save sufficiently, but I consider it a much over looked source of retirement funds for many others.

[maat55]

[quote]

Originally Posted by disneysteve

That's an interesting question, but the same could really be asked about any area of spending. Yes, we could cut food spending but we could also cut travel spending, entertainment spending, clothing spending, etc.

Very true, we could all cut something in every area. I bring up food due it seems to be one area less considered. I actually think a lot of people think they are not spending alot on food and beverages, when they are.

IMO, the top three areas of excess are housing, autos and food. I'm convinced that food/beverages may be the worse.

Again, this exercise if for those looking for more money to payoff debt and build retirement savings.

[MonkeyMama]

We eat well on about $400/month, for the 4 of us. The kids eat as much as an adult, though I know that will get worse with age, since they already seem to be bottomless pits.

I think it's a good point. I have a lot of *broke* friends who think nothing of spending $1k/month on food. (Lots of junk and eating out). I personally can't afford to spend much more on food than we do, though we could certainly due with less. This is just good middle ground for us. It's important for me to keep our food comsumption down so that we are not broke, for one.

I agree with the whole idea of the latte factor, but as you can see, the food factor can be pretty significant! I think more people would do well to examine their food budget.

[ukgaz]

We have decreased our food bill quite a bit over the last 3 years (for two of us). Shopping at Costco and making food at home does save A LOT of money

But still 2, 3 or 4 times a month we go out to eat. I work hard and sometime I just want to go to the Outback and enjoy my favorite meal even if it is 50 bucks for the two of us. As long as my bills are all paid and I have made my minimum contribution limit that I have set for retirement accounts and EF then I can justify it

[GREENBACK]

We don't eat out very often but do enjoy cooking nice meals at home. I sometimes marvel at how much less you spend preparing a first class meal at home versus the cost at a restaurant. I could probably save a fair amount(couple hundred maybe) if I didn't tend to buy the higher priced grocery items but it's not a significant portion of the budget and it's a luxury that I don't mind allowing myself.

[disneysteve]

Originally Posted by maat55

there is a sizable difference in many peoples spending from basic food intake to normal intake.

IMO, a lot of people spend far more than they think on food and beverage luxuries that could be funding other more important areas.

Absolutely. I've told the story before that years ago, my wife worked with a bunch of people who were always moaning about being broke. At break time, they'd all grab a soda out of the vending machine in the lounge for $0.75. At lunch time, they'd all go out and bring back fast food. On pay day, they would rush out to cash their checks so that they had enough money to buy lunch that day. My wife, on the other hand, would pack a can of soda ($0.10 each on sale) and brown bag her lunch. She had direct deposit and most of the time didn't even know it was pay day until everyone else went running to the bank. I did the same as her and we figured out that we saved hundreds of dollars each month by doing that.

Today, we absolutely spend way too much on food. We enjoy eating out. We also all have pretty busy schedules and aren't always home for dinner. If I have an evening meeting, I'll go straight from work and stop for dinner on the way. One day a week, DW picks up DD at school and they stop for dinner and then go for religious school. Sure, we could plan ahead and pack dinner. We just don't. If money were an issue, though, we certainly could and would.

[bjl584]

I usually don't eat out. I may go out once every other week as a treat, but I enjoy cooking, and I'm into lifting weights and fitness, so I find it much easier for me to track my calories, fats, and proteins if I prepare my own meals as opposed to eating out.

[GREENBACK]

Originally Posted by disneysteve

Absolutely. I've told the story before that years ago, my wife worked with a bunch of people who were always moaning about being broke. At break time, they'd all grab a soda out of the vending machine in the lounge for $0.75. At lunch time, they'd all go out and bring back fast food. On pay day, they would rush out to cash their checks so that they had enough money to buy lunch

I used to know a lady like this. She was literally on public assistance but would eat out virtually everyday. I'm sure people like this give no thought to the money they throw away. Guess it helps when it's someone else's money you're burning.

[MonkeyMama]

Originally Posted by disneysteve

Absolutely. I've told the story before that years ago, my wife worked with a bunch of people who were always moaning about being broke. At break time, they'd all grab a soda out of the vending machine in the lounge for $0.75. At lunch time, they'd all go out and bring back fast food. On pay day, they would rush out to cash their checks so that they had enough money to buy lunch that day. My wife, on the other hand, would pack a can of soda ($0.10 each on sale) and brown bag her lunch. She had direct deposit and most of the time didn't even know it was pay day until everyone else went running to the bank. I did the same as her and we figured out that we saved hundreds of dollars each month by doing that.

For me, it's "How could you possibly support a family on one income?" I think the biggest cost savings we found (besides lower income taxes - which is the biggie) is by cutting our food budget.

Before kids, we probably ate out most of the time for lunch (was expected with our type jobs - we both ate out with clients almost every day - often covered by employer but not always). But we were saving some huge percentage of our income and never thought twice about it. (Definitely a busy factor, too).

Slashing our income considerably, the food budget was the obvious category to cut. The more I talk to other people I am just amazed how much they spend on food. I am referring to people who don't have a penny to their name or not saving for retirement.

Though in the past we could certainly justify the expense, I don't think I would ever go back to frequent eating out. The side benefit is the weight loss. It doesn't seem to matter what it is or how much I eat, but if I eat one meal out, I notice it on the scale. My dh is stick thin to begin with, but lost about 10 pounds when we stopped eating out every day. I figure there is a long-term cost savings with our health. IT wasn't our intent when we cut back the eating out since we are both thin anyway, but the difference is astounding.

As a funny aside, I was out with a friend and ordered a salad the other day. She said, "Wow, you are being good!" Meanwhile, it was like 4 servings of salad (GIANT) covered in bacon and eggs, and smothered in dressing of course. I was thinking that was not what I envisioned when I ordered salad. Good? Pffffft. A home cooked lasagna would have less calories.

[Hector]

My wife and I spend around $600/month on food which includes $200 in eating out.

[maat55]

As many know here, prioritization is a major factor in good personal finance. It is clear that most here have their priorities in the right place. What is also noticeable is that even with proper priorities we like to indulge on food and beverage.

I really think those who are struggling should give a serious look at their food/beverage expenditures for substantial ways to cut spending in order to fund other priorities.

[Coronet]

I know I spend way too much money on food/eating out. I spend about $300 a month for dining out and groceries. I realized that I was spending too much after a few months of tracking my expenses and since I have made an effort to eat out less and brown bag my lunch at work.

[Mr Nice Guy]

Taking a look at my spending diary for December, I have spent $197.95 on food in the groceries category. It seems like a lot for a single male, but I had probably $25 of that go towards a Christmas potluck.

In the eating out category, I have spent $72.64 in December. This includes coffee (which I will separate into its own category from here out.)

I guess I am pretty happy, but will try to do more cooking next month. Cooking seems to cost about as much as eating out, but you get extra leftovers. And once you buy a salad dressing (or other condiments) once, it is good for at least a month or two.