Your favorite Friday night restaurant could be dishing out a hefty blow to your retirement dreams. In a recent MarketWatch column, a reader wondered whether a weekly restaurant habit might end up costing millions over a lifetime.
Spending freely on non-essentials is a concern that resonates with many Americans navigating rising prices and financial uncertainty. But can dining out really take that big a bite out of your retirement?
The real cost of your restaurant habit
According to MarketWatch, Americans spend about $2,250 a year dining out. Over 55 years, that adds up to $123,750 in restaurant bills. If you include takeout and delivery, the total rises to roughly $3,640 a year, or more than $200,000 over the same period.
Restaurant spending often feels reasonable in the moment, but the costs add up quickly. With food prices up 30 percent since 2020, eating out is more expensive than ever. What once felt like an occasional treat is now a significant expense that could be redirected toward longer-term financial goals.
Spend less without skipping the fun
You can cut restaurant spending without giving up dining out completely. A few simple adjustments can help you lower costs while still enjoying good food and great company.
- Know what you’re really spending. Researcher Amit Sharma at Penn State found that frequent diners often underestimate how much they spend. Try tracking your restaurant and takeout costs for one week. You might be surprised by the total.
- Try the replacement rule. For every restaurant meal you skip, plan a homemade version that still feels like a treat. Taco night or Sunday brunch at home can cost far less and often feels more relaxed and enjoyable.
- Commit to saving. Skipping a restaurant meal only helps if you actually set the money aside. Transfer what you would have spent into an emergency fund. SoFi Checking is offering 3.8% interest, plus a potential $300 signup bonus. (May change without notice.)
- Start a friend group dinner rotation. Instead of dining out with friends, take turns hosting simple meals at home. It spreads out the effort and cost, and the atmosphere is usually more relaxed than eating out.
- Join AARP. Save on dining, travel, eyeglasses, prescriptions and more. $15/year with auto-renewal. Join now and save hundreds.
Eating well does not have to mean overspending. Small changes in how and when you dine out can leave more room in your budget for the things that matter most.
Rethinking what’s on your plate
Your restaurant habit is unlikely to cost you millions or put your retirement at risk. But cutting back even a little and saving the difference could build a small nest egg you would not have had otherwise.
What feels like a small choice today can add up over time. As Quentin Fottrell wrote in MarketWatch, “Nothing tastes as good as saving money.”
Add a Comment