Why Eating Out Can Be Better Than Cooking at Home

 

Eating Out vs Cooking at Home

I recently saw a post about saving money by making a sandwich vs just buying a sandwich and I think there is some truth to the post. I used to work on the road quite a bit and buying a loaf of bread, condiments, cheese, lettuce, tomato, deli meat really adds up. Now obviously if you total all the sandwiches created and if the condiments and veggies were completely utilized then it makes financial sense to make at home. But when I was traveling on the road it was difficult to store condiments and vegetables. It was nearly impossible to utilize even half of the food before I would have to throw it out or I would just lose it in a move. This is the same problem with salads have multiple dressings that never get finished. Simply buying a bag salad that is fully utilized is more cost effective. I crunched the number while on the road and just decided it was best to simply eat out at the cheapest restaurants vs buying groceries.      

Food Waste

Food waste is a massive issue which in turn is a massive financial waste. Roughly 17% of household groceries are wasted each year. Groceries prices are at an all-time high right now due to inflation meaning if you spend $1000 a month on food, $170 is completely pointless. Want to lower your grocery bill by 17%? Eliminate your food waste. 17% is the average, meaning some households are upwards of 20%. Reducing food waste can have a significant impact on both the environment and your wallet. It's not just about saving money; it's also about being mindful of the resources that go into producing food and minimizing our overall impact on the planet.  

 

Opportunity Cost

Another decision that can cause food waste is when you decide to eat out. Making a large meal to eat throughout the week can be economical but only if you eat it all. If you make a large chili on Sunday and by Saturday you aren’t feeling like finishing the leftovers so you eat out. Eating out may mean that the remaining chili is thrown out therefore increasing food waste and increasing the cost of that meal. A $10 meal eaten out and + $3 bowl of chili thrown out cost you $13. The timing is what makes this economic concept apply. Eating out on a Wednesday when the chili is not about to expire does not increase the cost.    

Benefit of Eating Out

Eating out is normally always deemed to be financially irresponsible but in some cases an argument could be made where it makes some sense. Buying a whole sandwich leaves you with no leftover condiments or toppings, no bread to go stale or cheese to go moldy. It's much easier to gauge how hungry you are and to only order the amount of food you are able to consume. Although you are spending more per calorie/meal the lower food waste increases the efficiency of your dollar. Eating out is more efficient when your circumstances are less permanent like traveling or in-between moving or transitioning between places. In such situations, the convenience of not having to worry about cooking utensils, ingredients, or kitchen cleanup can outweigh the higher cost of eating out. It can also provide an opportunity to explore local cuisines and enjoy guilt free indulgences without the hassle of grocery shopping or meal preparation. 

Eating out is a poor financial decision in most cases, but during certain circumstances it can actually be a wise choice. The meme has some merit and sets up a good conversation of weighing out the pros and cons of splurging on a meal or two. As it is with most financial decisions it's about thinking about the full picture, taking convenience, time saved, but also food waste into consideration. 

If you found this helpful and would like help budgeting or investing please email me at taylormckeecoaching@gmail.com