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This is a bit of an interesting subject, because I've always felt recently that we were spending too much eating out.. until i started to look a bit more closely at my co-workers (we're all around this 25-35 age). I'm pretty much the only one that doesn't eat out every day for lunch. Most of the places that they frequent are at least $10-15 per meal. assuming 20 or so working days in a month, that's easily $200-300 just there. And these are the same folks that come in and complain about affording a new set of tires for their car. Then you see them on facebook the next weekend at the latest hot spot, likely dropping another couple hundred bucks on dinner. I just look at that and say I could fill my Roth IRA each year with that, but I am probably the absolute outlier for someone my age (29).
My husband and i when we were first starting to date, we did eat out a ton. I admit, i did a lot while i was single too. No kids yet, but we still try to meet a happy medium to going out. We've been much more focused on watching this type of spending, especially since getting more serious about becoming financially independent - some of the replies I've received on some of my other posts here has really encouraged us and showing us the light of how early we could FI if we stayed focused.
We try to not eat out as a convenience, but more of a reward. We try to limit going out to a sit-down restaurant for special occasions. Spent approx $1500 so far this year at restaurants, but most of that was in Aug/Sept. Celebrating a birthday, then celebrating my husband's new job, and celebrating a job promotion for me. My husband eats out for lunch once a week, usually on the day he has to come into the office at 5 AM and it balances out with the free catered lunch I receive once a week from work.
Alternatively, I've started to invest more in things such as grocery delivery/quick pick-up services due to the time savings and just pure value of my time. We also instead of eating out have done some subscription meal service, but mostly as a way to learn to cook with ingredients we are unfamiliar with and to improve our cooking skills. Our grocery spending is probably a bit more than I really want it to be, mostly because of our alcohol consumption (we enjoy sharing a bottle of wine 1-2x during the week, plus weekend), but we're working on that slowly over time.
You guys have kids with a lot of disposable income. When I was either 26 or 27, that was one of my worst income years... I remember because I qualified for the EITC on one of those tax returns.
So I wasn't spending 12k a year going out when I was only making 14-16k.
Even now I'd say that total spending on food and groceries comes out to the $1k a month range, that includes eating out. My wife and I aren't all that social so "restaurants with friends" nights are maybe once or twice a month. We typically eat out 1-2x a week but it's often food trucks, etc... I will get grumpy if we spend more than $20 per person on an eat-out, including drinks.
My two kids are 27 and 33 years old. They have lots of friends and get together with them nearly every evening after work. Happy Hour and then dinners out. They tell me that most everyone they know who work in professional jobs and don't have kids spend their evenings at happy hour and eating out with friends. At a minimum, they spend at least $1000 a month in these after work social events.
Do you think this is as common with white collar professionals their age who don't have kids?
Where do they get that kind of money? Are they Subsidy Kids getting free money from parents, boy/girlfriends, etc? Nobody I work with has that kind of money to spend.
My two kids are 27 and 33 years old. They have lots of friends and get together with them nearly every evening after work. Happy Hour and then dinners out. They tell me that most everyone they know who work in professional jobs and don't have kids spend their evenings at happy hour and eating out with friends. At a minimum, they spend at least $1000 a month in these after work social events.
Do you think this is as common with white collar professionals their age who don't have kids?
Yes this is common. One thing is the $1,000 a month is not linear. Some months might be much less or some months might involve a vacation and be more. A lot of the posters are touching on issues that are not relevant. By saying they are white collar professionals we need to make some assumptions:
1. By 27-33 most white collar professionals have graduated by 22-23 and may have a graduate degree paid off
2. Are 5-10 years into a career with a couple of promotions behind them.
3. Gross salary should be anywhere from $75,000 to $120,000
In that case they can easily spend $1,000 a month on entertainment and save for other things.
The real question is are they saving for those other things or paying off debt?
The happiest cultures in the world don't have their lives revolving around eating at restaurants and other forms of consumerism.
Life is to be lived, indeed. Some of us don't consider cube dwelling to age 65 (if we make it that long) to pay for dinners out and other frivolities to be much of a life. That doesn't mean all frivolity must be denied, but if you're spending $1k a month on such frivolities and you're not saving/investing at least the same amount every month (and I think that's a low estimate), then you're doing it wrong. Odds are, you'll regret it. I've seen it first hand with friends and family I know.
See that's interesting. I lost my husband to cancer at 52. When I was in my young widows grief group, not one person there said "I wish we had more money" or "I wish we had life insurance". Everyone there including myself regretted the times when we had a chance to do something and said "we can't afford it" or "we'll have time later". well no one is promised later.
It is a balancing act. Do I want my sons to miss out on going to an Eagles game because they have to save for retirement 45 years away?? NO I do not. Do I want them to have to sacrifice so they can get their first apartment?? Yes.
Earlier this year I went to a Bar mitzvah and you know what the parents wanted for gifts?? money for the kids IRA. AT 13!! I thought that was so sad. and we wonder why our young adults are stress out.
You guys have kids with a lot of disposable income. When I was either 26 or 27, that was one of my worst income years... I remember because I qualified for the EITC on one of those tax returns.
So I wasn't spending 12k a year going out when I was only making 14-16k.
Even now I'd say that total spending on food and groceries comes out to the $1k a month range, that includes eating out. My wife and I aren't all that social so "restaurants with friends" nights are maybe once or twice a month. We typically eat out 1-2x a week but it's often food trucks, etc... I will get grumpy if we spend more than $20 per person on an eat-out, including drinks.
I think it depends on the industry. Now I graduate college in the dark ages, lol the 80's but I was a petroleum chemist. My first job was at a BP refinery so I was making 40K back in the 80's with no student loans.
My best friend was an attorney for a hedge fund company in NYC, she had her law school loans but was making a decent salary.
Now my oldest son didn't go to college, instead he went into a union plumbers apprenticeship program so even at 18 he was making union salary. now he's finishing up his pipefitters apprenticeship. he'll probably end up making more than most doctors when he's 35.
just depends. My little cousin is a Philadelphia teacher, just started so her salary is not as great.
$1,000 is a tremendous amount and fit the demographics above. 31 and I live in a low cost area.
I like to dine out. Combined with some other errors, the dining out made it tough on me for awhile. With that said, I was mostly a $25/hr - entree and two beers type. I still eat out, though am doing so less because of weight these days and try to go out only to specials.
I went out to Olive Garden (I know) Friday night. Between the entree, wine quartino, and tip, it was something like $35. Bring two people and you could easily be up to $70 at a not fancy restaurant like Olive Garden if you get a midrange entree and alcohol. If you go to a higher end restaurant with $30+ entrees, expect to spend $100 for two people with alcohol and tip. Alcohol and tip are the big problems there.
That's where the budget gets blown for me, not going out to Jersey Mike's for an $8 sandwich/drink/chip combo.
Where do they get that kind of money? Are they Subsidy Kids getting free money from parents, boy/girlfriends, etc? Nobody I work with has that kind of money to spend.
Maybe they work in a career that does give them the money to spend.
We just hired a fresh college grad engineer starting this coming Monday. $65K plus bonus starting salary. Not a bad income to make at age 24.
That's normal especially working at high demanding jobs. They need the breaks to relax and socialize.
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