Restaurant Budget

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Topic Author
dontmindthegaap
Posts: 15
Joined: Tue Sep 11, 2018 10:19 am

Restaurant Budget

Post by dontmindthegaap »

Hi BHs,

I started tracking my household expenses a year ago. And I was surprised to learn my spouse and I spend around $700/month at restaurants (eating out, getting drinks, ordering take out). I live in HCOL city. Is that a lot? Would you mind sharing your data and some additional info to give it perspective?

For us:

2 People
Both age 25
HCOL
No children
Household income pre-tax $123,500

Thanks,
dontmindthegaap
Jags4186
Posts: 8198
Joined: Wed Jun 18, 2014 7:12 pm

Re: Restaurant Budget

Post by Jags4186 »

Yes it is a lot and yes it is a struggle for us as well.

I find that when I go grocery shopping every week our restaurant spending goes way down and when we’re busy and put it off it goes way up.
stoptothink
Posts: 15368
Joined: Fri Dec 31, 2010 8:53 am

Re: Restaurant Budget

Post by stoptothink »

That's more than twice as much as my family of 4 spends total on food...it's also less than half of what I know other families spend on eating out. FWIW, our restaurant budget is $0/yr (I think my wife may have spent maybe ~$100 on a few lunches with co-workers in 2018). We are on the extreme end of this discussion so my anecdote is probably worthless because we have different goals and priorities than most other people. That being said, for families looking to trim the budget, there is almost always significant savings potential in food spending.

37 and 32, children 6 and 3
HHI: ~$210k/yr
Total food spending: $250-$300/month
MCOL area
hoops777
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Joined: Sun Apr 10, 2011 12:23 pm
Location: Behind the 3 point line

Re: Restaurant Budget

Post by hoops777 »

I guess that depends on how much money you want to save and other things you probably do not think about yet like what is in the food you eat.How much do you spend monthly for all of your food?
K.I.S.S........so easy to say so difficult to do.
Admiral
Posts: 5039
Joined: Mon Oct 27, 2014 12:35 pm

Re: Restaurant Budget

Post by Admiral »

dontmindthegaap wrote: Wed Nov 28, 2018 11:47 am Hi BHs,

I started tracking my household expenses a year ago. And I was surprised to learn my spouse and I spend around $700/month at restaurants (eating out, getting drinks, ordering take out). I live in HCOL city. Is that a lot? Would you mind sharing your data and some additional info to give it perspective?

For us:

2 People
Both age 25
HCOL
No children
Household income pre-tax $123,500

Thanks,
dontmindthegaap
That is very high but only because of (or perhaps "based on") its percentage of your after tax income. It's nearly 7% of your PRE-TAX income. Not a good sign. We spend less than that in a month for 4 people (though the kids don't always come with), typically $500-$600 a month, and our income is almost triple what yours is. Eat at home. Drinking less also helps. :sharebeer
hoops777
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Location: Behind the 3 point line

Re: Restaurant Budget

Post by hoops777 »

stoptothink wrote: Wed Nov 28, 2018 11:55 am That's more than twice as much as my family of 4 spends total on food...it's also less than half of what I know other families spend on eating out. FWIW, our restaurant budget is $0/yr (I think my wife may have spent maybe ~$100 on a few lunches with co-workers in 2018). We are on the extreme end of this discussion so my anecdote is probably worthless because we have different goals and priorities than most other people. That being said, for families looking to trim the budget, there is almost always significant savings potential in food spending.

37 and 32, children 6 and 3
HHI: ~$210k/yr
Total food spending: $250-$300/month
MCOL area
I have seen posts like this on other threads,probably your post :D May I ask what is the reason for the 9 dollars a day or so since money is not the issue?Do you grow a lot of your own produce?
K.I.S.S........so easy to say so difficult to do.
daheld
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Location: Midwest US

Re: Restaurant Budget

Post by daheld »

7% of your pre-tax income is...a lot. Cook more at home, and take your leftovers for lunch. I love good beer, wine and whiskey, but I buy them and drink them at home. Buying drinks out every now and again is fine, but it is SO much more expensive.
Olemiss540
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Joined: Fri Aug 18, 2017 8:46 pm

Re: Restaurant Budget

Post by Olemiss540 »

Jags4186 wrote: Wed Nov 28, 2018 11:51 am Yes it is a lot and yes it is a struggle for us as well.

I find that when I go grocery shopping every week our restaurant spending goes way down and when we’re busy and put it off it goes way up.
This. It is a part time job meal prepping and grocery shopping, but it a good paying one!

We spend way too much on food, but atleast we limit eating out somewhat. Some of the budgets you read about are incredible. Wish I could get the family budget below 1k/mo on food. Sadly not enough to do ALL of the planning/cooking myself.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.
stoptothink
Posts: 15368
Joined: Fri Dec 31, 2010 8:53 am

Re: Restaurant Budget

Post by stoptothink »

hoops777 wrote: Wed Nov 28, 2018 12:05 pm
stoptothink wrote: Wed Nov 28, 2018 11:55 am That's more than twice as much as my family of 4 spends total on food...it's also less than half of what I know other families spend on eating out. FWIW, our restaurant budget is $0/yr (I think my wife may have spent maybe ~$100 on a few lunches with co-workers in 2018). We are on the extreme end of this discussion so my anecdote is probably worthless because we have different goals and priorities than most other people. That being said, for families looking to trim the budget, there is almost always significant savings potential in food spending.

37 and 32, children 6 and 3
HHI: ~$210k/yr
Total food spending: $250-$300/month
MCOL area
I have seen posts like this on other threads,probably your post :D May I ask what is the reason for the 9 dollars a day or so since money is not the issue?Do you grow a lot of your own produce?
We grow none of our own produce. I was a broke student until the age of 31, I spent quite a bit of time and effort figuring out how to eat well for the least amount of money. Wife and I are also borderline obsessive about health and have no problems eating the same things every single day. Feel free to search for more information on how we eat/shop; I do know there are a few others on this board who have similar systems.
Broken Man 1999
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Location: West coast of Florida, near Champa Bay !

Re: Restaurant Budget

Post by Broken Man 1999 »

$700/month seems a lot to me, but honestly DW and I spend much more than I like, as well. We are in the $300-$400/month range in Florida.

DW is a good cook. However, except for grilling out she really avoids it like the plague. Our daughters always kid her about finding the range cord in the oven.

I get it. She doesn't like to cook. It is just one point of a 47 year marriage. So I don't get too stirred up about it.

We get senior discounts, and often take home portions of restaurant meals to enjoy again. And, the meals are sometimes with family members, so everyone can enjoy themselves.

In fact wife is with DD's MIL, so wife is bringing me a meal home, just got the call. The two have been shopping today. Thankfully I wasn't asked to go. I'm sure the two grandmothers had lots to talk about their joint grandchildren.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
hoops777
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Location: Behind the 3 point line

Re: Restaurant Budget

Post by hoops777 »

stoptothink wrote: Wed Nov 28, 2018 12:12 pm
hoops777 wrote: Wed Nov 28, 2018 12:05 pm
stoptothink wrote: Wed Nov 28, 2018 11:55 am That's more than twice as much as my family of 4 spends total on food...it's also less than half of what I know other families spend on eating out. FWIW, our restaurant budget is $0/yr (I think my wife may have spent maybe ~$100 on a few lunches with co-workers in 2018). We are on the extreme end of this discussion so my anecdote is probably worthless because we have different goals and priorities than most other people. That being said, for families looking to trim the budget, there is almost always significant savings potential in food spending.

37 and 32, children 6 and 3
HHI: ~$210k/yr
Total food spending: $250-$300/month
MCOL area
I have seen posts like this on other threads,probably your post :D May I ask what is the reason for the 9 dollars a day or so since money is not the issue?Do you grow a lot of your own produce?
We grow none of our own produce. I was a broke student until the age of 31, I spent quite a bit of time and effort figuring out how to eat well for the least amount of money. Wife and I are also borderline obsessive about health and have no problems eating the same things every single day. Feel free to search for more information on how we eat/shop; I do know there are a few others on this board who have similar systems.
Ok.I remember now from another thread.I respect what you do even if it is not something I do.We eat very healthy but spend double for 2 people.You should write a how to book because there are a lot of people hurting financially that spend way too much money on food and unhealthy food at that.
K.I.S.S........so easy to say so difficult to do.
open_circuit
Posts: 286
Joined: Thu Mar 30, 2017 9:20 am

Re: Restaurant Budget

Post by open_circuit »

We budgets $200 / month for restaurants for a family of 4. $700 / month sounds extremely high to me, based on how we choose to budget. Personal finance is personal, though, so you are free to set your scale as you choose.
Admiral
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Re: Restaurant Budget

Post by Admiral »

hoops777 wrote: Wed Nov 28, 2018 12:23 pm
stoptothink wrote: Wed Nov 28, 2018 12:12 pm
hoops777 wrote: Wed Nov 28, 2018 12:05 pm
stoptothink wrote: Wed Nov 28, 2018 11:55 am That's more than twice as much as my family of 4 spends total on food...it's also less than half of what I know other families spend on eating out. FWIW, our restaurant budget is $0/yr (I think my wife may have spent maybe ~$100 on a few lunches with co-workers in 2018). We are on the extreme end of this discussion so my anecdote is probably worthless because we have different goals and priorities than most other people. That being said, for families looking to trim the budget, there is almost always significant savings potential in food spending.

37 and 32, children 6 and 3
HHI: ~$210k/yr
Total food spending: $250-$300/month
MCOL area
I have seen posts like this on other threads,probably your post :D May I ask what is the reason for the 9 dollars a day or so since money is not the issue?Do you grow a lot of your own produce?
We grow none of our own produce. I was a broke student until the age of 31, I spent quite a bit of time and effort figuring out how to eat well for the least amount of money. Wife and I are also borderline obsessive about health and have no problems eating the same things every single day. Feel free to search for more information on how we eat/shop; I do know there are a few others on this board who have similar systems.
Ok.I remember now from another thread.I respect what you do even if it is not something I do.We eat very healthy but spend double for 2 people.You should write a how to book because there are a lot if people hurting financially that spend way too much money on food and unhealthy food at that.
There are plenty of books on it. A mostly or primarily vegetarian diet (even organic) is much cheaper than the alternatives.
JackoC
Posts: 4714
Joined: Sun Aug 12, 2018 11:14 am

Re: Restaurant Budget

Post by JackoC »

dontmindthegaap wrote: Wed Nov 28, 2018 11:47 am Hi BHs,

I started tracking my household expenses a year ago. And I was surprised to learn my spouse and I spend around $700/month at restaurants (eating out, getting drinks, ordering take out). I live in HCOL city. Is that a lot? Would you mind sharing your data and some additional info to give it perspective?

For us:

2 People
Both age 25
HCOL
No children
Household income pre-tax $123,500
I don't break eat out/take out of the general category 'entertainment/vacation'. Probably should have, but keeping figures in same categories now for almost 30 yrs. But I'd say we spend around $400 normally on eat out/take out per month, empty nest couple in (V)HCOL area. We, retired, have modest lunch out most days, dinner much less often. It probably exceeds $700 some months though if we take grown kids (two live within walking distance plus another around sometimes) for dinner and people drink; likewise holiday time, visiting guests etc. In addition we spend around $950/mo on supermarket items (not only food but everything you'd buy at one), a separate category on its own. My wife likes good food (and wine though that's a fairly small %, not Johnny Depp's wine budget), maintains extensive supplies for every aspect of home country as well as US cuisine, often cooks big meals for the grown kids with lots of leftovers. But we should probably spend more money. Of course we could cut both those categories if we were spending too much.

So, even with the info about income, depends what you spend on everything else and goals for savings v enjoying life. People at OP income level spending every penny spend more than that eating out for sure...but they're spending every penny. If OTOH you want to get to some very high % savings of after tax at that age (a separate debate) you'd probably want to cut down, even if it were the only high spending area. More urgently if you didn't have at least several months of expenses socked away. I know from seeing my 20's-30's kids' spending, going through their debit card statements to collect their business expenses when I do their taxes (at least they're saving on tax prep :happy ) that they could and should cut it. Getting them to is another issue.
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ray.james
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Re: Restaurant Budget

Post by ray.james »

Been there - when I was single/DINK phase. Now I spend that much on total grocery + eating out. Two things that started me on the path:

1) Batch cook/Easy cook items: these are something you like - that you can either batch cook for 4 meals (or) you can cook for 20 minutes or less. For me these are - egg sandwiches, Noodles, Pasta, Instant pot Meat/curry/Biryani. I can cook any of these in 30 minutes or less. For instant pot, you put it and forget. Try to substitute a take out a week with one of these items. Develop these easy cook items. Batch cook once a week with something you like that will come for at least 3-4 meals(dinner, lunch, dinner.). Another important factor, the dish should take maximum of 1 pot + 1 spoon to clean afterward due to cooking.

2) Avoid going to places that cost more than 15 bucks for main course items. For me 2-4 of the eating out trips contributed 50-60% of the eating out budget. Bills end up in $70-100 range with tips and taxes. Reduce these to once a month or less. One can substitute that with a take-out from Chinese, Thai, better fast food like chipotle, texmex for just 20-25 bucks. I still spend $100 at my favorite place but it is the only one worth it.
When in doubt, http://www.bogleheads.org/forum/viewtopic.php?f=1&t=79939
knowledge
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Re: Restaurant Budget

Post by knowledge »

Definitely following this as I've noticed that (1) we spend way more than a typical family on food and (2) it's up materially in the last 3 years.
To put some numbers on it, between groceries/take out/eating out, we're pacing to $22k for a family of 4 (two toddlers) this year vs. $16k back in 2015 (granted we were only a family of 3 back then).

Which is higher than the average food expenditure for $200k+ incomes (per BLS, this was $16.3k in 2017).
bloom2708
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Re: Restaurant Budget

Post by bloom2708 »

Everything is relative.

If you are both maxing pre-tax 401k and Roth IRAs and filling up your HSA (if available), then you are fine. Spend the rest.

If you are not doing those things, then $700 on dining out seems too like too much. How much for Groceries/dining in?

Everything is relative.
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TierArtz
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Re: Restaurant Budget

Post by TierArtz »

We (family of 5) spend about $450 per month on "dining out" (food not bought at a grocery store), which is about 1/3 of the total food expenditure and 3% of take-home pay. We generally just drink water, which likely saves quite a bit. MCOL area.
gluskap
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Re: Restaurant Budget

Post by gluskap »

Our restaurant budget is $400/month. Total food budget is $1000/month. Family of 3 and daughter is only 4.5. We also live in HCOL area. Our restaurant budget used to be higher and closer to yours because we both have long commutes and tended to eat out more often out of convenience. I started to make more effort to grocery shop and that's enabled us to drive the restaurant budget way down. Plus having a kid now it's much harder to meet up with friends to go eat out on the weekends so that's helped too. Our total household income though is about $300k.
H-Town
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Re: Restaurant Budget

Post by H-Town »

dontmindthegaap wrote: Wed Nov 28, 2018 11:47 am Hi BHs,

I started tracking my household expenses a year ago. And I was surprised to learn my spouse and I spend around $700/month at restaurants (eating out, getting drinks, ordering take out). I live in HCOL city. Is that a lot? Would you mind sharing your data and some additional info to give it perspective?

For us:

2 People
Both age 25
HCOL
No children
Household income pre-tax $123,500

Thanks,
dontmindthegaap
Here's my data poimt: Family of 2. We spend $600 a year (average $50 a month) on eating out and 2,400 a year (average $200 a month) on groceries and household items. We spend a lot more on traveling as we average 5 long vacations a year. We spent $12k-$20k a year on traveling, including hotel, flights, cars, and food. Pre-tax income $300k.
Time is the ultimate currency.
Sam1
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Re: Restaurant Budget

Post by Sam1 »

If you want to feel better, back in NY when our income was only 300-350k, we were spending around $1k each WEEK on dining out, takeout and alcohol. We partied hard and enjoyed every minute. You’re only young once.

Now we sock money away and spend around $250 per week.
Shallowpockets
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Re: Restaurant Budget

Post by Shallowpockets »

OP. I am curious what you thought you spent on restaurants before you figured it all out? I ask this because I am a believer in tracking expenses. Most people do not have any idea. They say they can look it up on their credit card bills. They never do. They ball park it. They are usually wrong, and oftentimes very surprised by the actual figures should they track it.

So, what were your thoughts before you put pen to paper?
KyleAAA
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Re: Restaurant Budget

Post by KyleAAA »

It's less than my wife and I have spent eating out the last few years. I'd estimate we've averaged $1200 or so per month. It's all about priorities.
jsapiandante
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Re: Restaurant Budget

Post by jsapiandante »

We typically spend between $200-300 a month eating out for a family of 3. We normally share an appetizer and a main course meal to keep costs down. Most restaurant portions are for two people anyway. We eat out 2-3 times a week. As much as we love to cook, most meals we order in restaurants are foods we normally don't cook.

But if you love to eat out, I don't think there's anything wrong with spending that much on it. As long as you're meeting your financial goals and will retire on time, it's all moot. Now, if you're trying to retire as early as possible or have a very comfortable retirement, then you should think about bringing that down.
randomguy
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Re: Restaurant Budget

Post by randomguy »

jsapiandante wrote: Wed Nov 28, 2018 1:55 pm We typically spend between $200-300 a month eating out for a family of 3. We normally share an appetizer and a main course meal to keep costs down. Most restaurant portions are for two people anyway. We eat out 2-3 times a week. As much as we love to cook, most meals we order in restaurants are foods we normally don't cook.

But if you love to eat out, I don't think there's anything wrong with spending that much on it. As long as you're meeting your financial goals and will retire on time, it's all moot. Now, if you're trying to retire as early as possible or have a very comfortable retirement, then you should think about bringing that down.
Yeah what are you going to do with the money if you don't spend it eating out? Will those activites make you happier? And how much of this budget is really more entertainment (hanging out with friends) versus food.
pejp
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Re: Restaurant Budget

Post by pejp »

My wife and I are DINK, with HHI around $330k in a fairly HCOL medium sized city. Food is by far our biggest expense. We grocery shop at whole foods, and spend about $1k a month at restaurants. We eat in throughout the week, and will usually splurge once or twice a month. I'd rather do that than multiple meals at the local bar/grill, tex mex or Olive Garden. Your spending does sound quite a lot, but it depends on what you value. For me, I don't have many hobbies, and I really enjoy fine dining, particularly Japanese. My wife will joke that a high end Sushi restaurant is when I'm at my happiest! I know that it's excessive, but it's also very easy to cut back on if I ever had to. For me, there are far worse things to spend money on.
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FlyAF
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Re: Restaurant Budget

Post by FlyAF »

Like others have said, it's all relative. Wife and I easily spend more than that eating out each month, but we also bring home several times what you do, are older, and have been saving/investing heavily for a couple of decades. We enjoy nice restaurants and don't bat an eye at the expense. We can also cut back/cut all at the blink of an eye. That said, I wasn't spending that much at 25 b/c I simply didn't have that much discretionary funds at that age to do so. My palette was also not very developed at that age, probably still drinking keystone light.
RandomDude
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Re: Restaurant Budget

Post by RandomDude »

Just looked at our ~3 years of data and we average about $600 a month on eating out, take out, drinks out and adult drinks at home - vast majority is eating and drinks out though I would say we are also very generous when picking up the tab with friends/family.

This has gone up slowly over the last 10 years as we've become more comfortable and we're not worried about it - we max out all tax efficient and save in after tax too. We enjoy going out and don't plan to stop.

DINK's mid 40's MCOL area.
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serbeer
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Re: Restaurant Budget

Post by serbeer »

We rarely go out to eat more than twice a month. That has not changed in the last 15 years as we moved from younger to middle ages and our income more than doubled. What changed is that it was unusual to spend more than $50 per meal before, and in the last 2-3 years it is around $75-$80 per meal. Still we usually leave less than $200/month in local restaurants.

But now we go to all-inclusive vacations 4 times per year (used to be 2), so we effectively have 4 weeks of eating out that I do not count here, just hidden in a different budget line-item called Travel :)
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dontmindthegaap
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Re: Restaurant Budget

Post by dontmindthegaap »

bloom2708 wrote: Wed Nov 28, 2018 1:13 pm Everything is relative.

If you are both maxing pre-tax 401k and Roth IRAs and filling up your HSA (if available), then you are fine. Spend the rest.

If you are not doing those things, then $700 on dining out seems too like too much. How much for Groceries/dining in?

Everything is relative.
I am on track to contribute $14,400 to my 401k this year (with a 3% match by employer and a pension which I am fully vested and would get a lump sum if I were to leave the employer today). My wife works for the state and participates in their pension program. She puts 8% and they match 8% (it is a 5 year vesting period. If she leaves before 30 years she gets a lump sum). We spend average $320/month in groceries.
Shallowpockets wrote: Wed Nov 28, 2018 1:39 pm OP. I am curious what you thought you spent on restaurants before you figured it all out? I ask this because I am a believer in tracking expenses. Most people do not have any idea. They say they can look it up on their credit card bills. They never do. They ball park it. They are usually wrong, and oftentimes very surprised by the actual figures should they track it.

So, what were your thoughts before you put pen to paper?
I would have ball parked it at $ 300/400 a month.
randomguy wrote: Wed Nov 28, 2018 1:58 pm Yeah what are you going to do with the money if you don't spend it eating out? Will those activites make you happier? And how much of this budget is really more entertainment (hanging out with friends) versus food.
Probably save it for a down payment on a house. I don't have a designated need for the funds. I guess it was more of a surprise to find out we spent that much. Albeit, a lot of it is spend socializing and going out with friends or trying new restaurants so it is mostly entertainment. With that said, I just want to be more conscious of it. Still go out with friends just as often but perhaps cut out on the take outs since we can cook at home on those occasions.
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Elsebet
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Re: Restaurant Budget

Post by Elsebet »

When we were in our late 20's to early 30's my husband and I both worked on very young, social teams that did a lot of lunches out and drinks after work. It was fun but some months I am estimating we would easily spend $800/month on this put together. After age 35 I found myself on older teams that didn't go out for lunch as often and rarely/never went out for happy hour on Fridays so I ended up saving a lot more money naturally. When we moved to crowded western Washington in our late 30's I noticed even young people did not go out for lunch as much because of traffic/parking or carpooling.

The plus side is that I have learned to cook my own food for lunches and bake. Now I only go out for lunch with former co-workers once a month or so but I enjoy it more I think.
"...the man who adapts himself to his slender means and makes himself wealthy on a little sum, is the truly rich man..." ~Seneca
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Artful Dodger
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Re: Restaurant Budget

Post by Artful Dodger »

My wife and I probably spend $500 to $700 a month eating out. But, it is almost always connected with another activity. Meeting friends, a day out shopping, before / after movie, concert / after hiking / walking, zoo, botanical garden, park, museum visit, etc.
KyleAAA
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Re: Restaurant Budget

Post by KyleAAA »

Elsebet wrote: Wed Nov 28, 2018 3:42 pm When we were in our late 20's to early 30's my husband and I both worked on very young, social teams that did a lot of lunches out and drinks after work. It was fun but some months I am estimating we would easily spend $800/month on this put together. After age 35 I found myself on older teams that didn't go out for lunch as often and rarely/never went out for happy hour on Fridays so I ended up saving a lot more money naturally. When we moved to crowded western Washington in our late 30's I noticed even young people did not go out for lunch as much because of traffic/parking or carpooling.

The plus side is that I have learned to cook my own food for lunches and bake. Now I only go out for lunch with former co-workers once a month or so but I enjoy it more I think.
I have noticed that about the Seattle area. People don't seen to go out to lunch together or do happy hour as much regardless of age.
CascadiaSoonish
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Re: Restaurant Budget

Post by CascadiaSoonish »

Mint says our family of four has averaged just about $700/mo in restaurants in the past year, so we're right there with the OP. And I don't think that's extravagant for a HCOL area. With entrees at $10 - $15 / ea for casual dining, you're already at $50 for the night and that's before adding any beer/wine. Even my years-long tradition of weekend breakfasts out with my kids is an easy $40 hit each time. It adds up. But I have no regrets about spending money on dining out as long as we're hitting our other financial goals. I'd rather enjoy food and family time rather than try to talk myself into enjoying lentils.
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JupiterJones
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Re: Restaurant Budget

Post by JupiterJones »

Of course, if you stopped going out at all, your regular grocery bill would go up. So the marginal cost of your restaurant hobby is going to be less than $700. Maybe more like $500???
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pdavi21
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Re: Restaurant Budget

Post by pdavi21 »

dontmindthegaap wrote: Wed Nov 28, 2018 11:47 am Hi BHs,

I started tracking my household expenses a year ago. And I was surprised to learn my spouse and I spend around $700/month at restaurants (eating out, getting drinks, ordering take out). I live in HCOL city. Is that a lot? Would you mind sharing your data and some additional info to give it perspective?

For us:

2 People
Both age 25
HCOL
No children
Household income pre-tax $123,500

Thanks,
dontmindthegaap
I'm probably at about 700 too LCOL area, and it's all my wife. I never eat out and usually take home for just her. My total expenses (excluding FICA and Tax) are < 12k annually family of four, making her eating habits nearly 6% of our spending.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking
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BrooklynInvest
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Re: Restaurant Budget

Post by BrooklynInvest »

I'd echo what others have said. If you're maxing out 401k and such, have at it.

That said, I did overdo things in this regard when I was your age. Wife and I were working long hours and unwinding with dinner and drinks out more often than we should. Today I don't economize when we go out BUT we do make a point of deliberately staying home when we just need fuel. Then it's leftovers or raiding the freezer.
pdavi21
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Re: Restaurant Budget

Post by pdavi21 »

JupiterJones wrote: Wed Nov 28, 2018 4:40 pm Of course, if you stopped going out at all, your regular grocery bill would go up. So the marginal cost of your restaurant hobby is going to be less than $700. Maybe more like $500???
Challenge accepted.
Meals Out: 2000 calories /100 calories per dollar = 20 bucks
Meals In: 300 calories protein / 200 +1100 carbs /1000 + 600 fat / 800 = 1.5 +1.1 + .75
3.35/20 = 16.75% x 700 = 117.25

I'd say 700 is like 500-600 depending on where/what you eat. Agreed.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking
MikeG62
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Re: Restaurant Budget

Post by MikeG62 »

DW and I (both early retired) have a monthly budget for restaurants at $500 per month. This does not include dining out while we travel, which is captured in our T&E budget. In fact, we travel frequently enough that when we are home we tend to mostly eat in.

In addition, our monthly budget for groceries and other household supplies and sundry items (including Costco, CVS, Target, etc..) is $1,300. I do not split the spend between food stuff and other items because it’s not actionable (we spend what we spend).
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bottlecap
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Location: Tennessee

Re: Restaurant Budget

Post by bottlecap »

We rarely go out any more. When we do, perhaps once a month, it costs at least $65 for two adults and 3 kids - and that’s no alcohol. I can cook a steak dinner with several vegetables at home for everyone for about $14, and that's an expensive dinner at home.

If you are concerned about your budget, learn to cook and save a little money. You can still go out sometimes, but if you get decent at cooking, you'll want to go out much less.

JT
runner3081
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Re: Restaurant Budget

Post by runner3081 »

All depends on what you enjoy and where you allocate funds.

Our family, the eating out budget is less than $150.. PER YEAR!

We just don't do it. Sure, we occasionally receive gift cards and use those, but that is basically it.
stan1
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Re: Restaurant Budget

Post by stan1 »

dontmindthegaap wrote: Wed Nov 28, 2018 11:47 am And I was surprised to learn my spouse and I spend around $700/month at restaurants (eating out, getting drinks, ordering take out). I live in HCOL city. Is that a lot? Would you mind sharing your data and some additional info to give it perspective?

For us:
2 People
Both age 25
HCOL
No children
Household income pre-tax $123,500
Well now you know how much you spend & can decide what if anything you want to do.

We do not enjoy cooking and do eat 1 or 2 lunches and 3 or 4 dinners out per week, but here's what we do to manage dining out expenses without too much sacrifice:
1) Eat breakfast at home
2) Drink coffee at home before leaving house. Brew at work in your office if you want. Drink water instead of coffee or sodas in the afternoon.
3) Take lunch to work (leftovers or salad with boiled egg or a little chicken)
4) When you do eat out look for less expensive places that have good food (& bring your friends with you)
5) Drink a little alcohol when with friends but not when we eat by ourselves

One added benefit of leftovers is weight loss. What we ate as 2 portions 20 years ago we now eat as 4 portions.
Warning: I am about 80% satisficer (accepting of good enough) and 20% maximizer
Saganaga
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Re: Restaurant Budget

Post by Saganaga »

For comparison, our family of six has spent approximately $300/month in the past year on eating out, and about $950/month on groceries. We are in a MCOL area.
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TxAg
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Re: Restaurant Budget

Post by TxAg »

$350/person/month....I'm sure I spent that much when i was 25. It was part of the "going out/fun" budget. Those costs naturally transition to things like diapers and daycare later in life :)
imfocusedman
Posts: 53
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Re: Restaurant Budget

Post by imfocusedman »

Here we go again. Family of 4 in HCOL, we budget $1000 for restaurants (mostly weekend dinners and weekday lunches/coffees) and $800 for groceries (weekday dinners and all the other things that fill the fridge and pantry).
Olemiss540
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Re: Restaurant Budget

Post by Olemiss540 »

Saganaga wrote: Wed Nov 28, 2018 8:54 pm For comparison, our family of six has spent approximately $300/month in the past year on eating out, and about $950/month on groceries. We are in a MCOL area.
This is a close approximation to my situation as well.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.
Nissanzx1
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Re: Restaurant Budget

Post by Nissanzx1 »

dontmindthegaap wrote: Wed Nov 28, 2018 3:19 pm
bloom2708 wrote: Wed Nov 28, 2018 1:13 pm Everything is relative.

If you are both maxing pre-tax 401k and Roth IRAs and filling up your HSA (if available), then you are fine. Spend the rest.

If you are not doing those things, then $700 on dining out seems too like too much. How much for Groceries/dining in?

Everything is relative.
I am on track to contribute $14,400 to my 401k this year (with a 3% match by employer and a pension which I am fully vested and would get a lump sum if I were to leave the employer today). My wife works for the state and participates in their pension program. She puts 8% and they match 8% (it is a 5 year vesting period. If she leaves before 30 years she gets a lump sum). We spend average $320/month in groceries.
Shallowpockets wrote: Wed Nov 28, 2018 1:39 pm OP. I am curious what you thought you spent on restaurants before you figured it all out? I ask this because I am a believer in tracking expenses. Most people do not have any idea. They say they can look it up on their credit card bills. They never do. They ball park it. They are usually wrong, and oftentimes very surprised by the actual figures should they track it.

So, what were your thoughts before you put pen to paper?
I would have ball parked it at $ 300/400 a month.
randomguy wrote: Wed Nov 28, 2018 1:58 pm Yeah what are you going to do with the money if you don't spend it eating out? Will those activites make you happier? And how much of this budget is really more entertainment (hanging out with friends) versus food.
Probably save it for a down payment on a house. I don't have a designated need for the funds. I guess it was more of a surprise to find out we spent that much. Albeit, a lot of it is spend socializing and going out with friends or trying new restaurants so it is mostly entertainment. With that said, I just want to be more conscious of it. Still go out with friends just as often but perhaps cut out on the take outs since we can cook at home on those occasions.
While you are saving for retirement, you are missing the boat on the Roth IRA's for you and your spouse. Also spending this much eating out when your housing goals aren't yet fully addressed could also need re-evaluation. Might be a good time to sit down with spouse and go over goals and priorities, and make a fresh budget from there.

Nothing wrong with spending lots of money on dining if you are financially set. It's a very enjoyable thing to do.
dsmil
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Re: Restaurant Budget

Post by dsmil »

$700 could be spent on drinks and expensive meals, and only replace 5 meals worth of grocery spending. $700 could conversely be spent on cheap lunches for you and your wife everyday, and cheap dinners on weekends, replacing 50 meals of grocery spending. I don't think that the amount of eating out spending is black and white because it has a lot to do with the number of meals that your replacing.

We spend about $400 per month on eating out and getting coffee, with our family of 4 (two toddlers). We usually go out for 1-2 meals on weekends and spend some money at coffee shops during the week and on weekends. We rarely bring food home and never get delivery. Our meals are cheaper things like pizza or breakfast and are generally under $30. We rarely order drinks. Even if we had more disposable income, I don't think our eating out habits would change much. It's easier and more enjoyable for us to go to cheaper and quicker places because we have two toddlers.
retiresoon222
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Re: Restaurant Budget

Post by retiresoon222 »

H-Town wrote: Wed Nov 28, 2018 1:20 pm
dontmindthegaap wrote: Wed Nov 28, 2018 11:47 am Hi BHs,

I started tracking my household expenses a year ago. And I was surprised to learn my spouse and I spend around $700/month at restaurants (eating out, getting drinks, ordering take out). I live in HCOL city. Is that a lot? Would you mind sharing your data and some additional info to give it perspective?

For us:

2 People
Both age 25
HCOL
No children
Household income pre-tax $123,500

Thanks,
dontmindthegaap
Here's my data poimt: Family of 2. We spend $600 a year (average $50 a month) on eating out and 2,400 a year (average $200 a month) on groceries and household items. We spend a lot more on traveling as we average 5 long vacations a year. We spent $12k-$20k a year on traveling, including hotel, flights, cars, and food. Pre-tax income $300k.
Do you separate your "eating out" between at home and while traveling?

I feel like your $600/yr eating out number is understated vs. what I might say b/c you are spending 12-20k per year on travel and I'm speculating that you are not buying groceries and cooking while traveling... but I might be off base in my thinking though.
H-Town
Posts: 5905
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Re: Restaurant Budget

Post by H-Town »

retiresoon222 wrote: Thu Nov 29, 2018 9:09 am
H-Town wrote: Wed Nov 28, 2018 1:20 pm
dontmindthegaap wrote: Wed Nov 28, 2018 11:47 am Hi BHs,

I started tracking my household expenses a year ago. And I was surprised to learn my spouse and I spend around $700/month at restaurants (eating out, getting drinks, ordering take out). I live in HCOL city. Is that a lot? Would you mind sharing your data and some additional info to give it perspective?

For us:

2 People
Both age 25
HCOL
No children
Household income pre-tax $123,500

Thanks,
dontmindthegaap
Here's my data poimt: Family of 2. We spend $600 a year (average $50 a month) on eating out and 2,400 a year (average $200 a month) on groceries and household items. We spend a lot more on traveling as we average 5 long vacations a year. We spent $12k-$20k a year on traveling, including hotel, flights, cars, and food. Pre-tax income $300k.
Do you separate your "eating out" between at home and while traveling?

I feel like your $600/yr eating out number is understated vs. what I might say b/c you are spending 12-20k per year on travel and I'm speculating that you are not buying groceries and cooking while traveling... but I might be off base in my thinking though.
Yeah I separate eating out between at home and while traveling. That's why we don't spend a lot eating out at home town. While traveling, we actually buy groceries and cook on many occasions, mostly on long road trips. We stay at hotel that have full kitchen (Staybridge, Candlewood, etc.). Also, I lump together groceries and dining out as sub-category "Food" under Traveling. The spending of Food is typically about 10-20% of the entire cost of a trip depends on where we travel.

Some might raise their eye-brows on how I keep track of my spending. But this is how I do it and I keep it consistent from year to year.
Time is the ultimate currency.
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