Reducing fast food can save you some fast money!

Reducing fast food can save you some fast money!

The average family of four spends around $11,948 a year on takeout.

From birth to adulthood, if you follow this model with your children you will spend just over $215,000 before you send your child off to college at age 18.

The golden rule of the restaurant business is to charge 3-4 times the food cost as the price for the customer. This factors in things like food cost, staffing cost, rent, utilities, insurance and more. So with that in mind, it is safe to say that instead of spending $12,000 on take out, you could have prepared these meals at home for yourself for around 1/3 the cost, or about $4000 a year. That would give you a yearly savings of around $8000.

Now what would happen if you were to invest your $8000 a year saved on take out into a low interest mutual fund for your children’s education? Well $8000 a year, with a return of 6% would be $262,000 towards your children’s future, even after the increase of $72,000 to your foo budget making these extra meals at home for 18 years.

These are some HUGE numbers. I have a family of 4 right now and will for sure be looking into this more and challenging myself and my budget with this information. Hopefully you have been challenged also to assess where your budget is and see how many a few small changes could save you hundreds of thousands of dollars in the long run.

Disclaimer: This article provides information only and is not intended to confer financial advice or opinion. If you have any further questions please consult a Financial Planner. Please note as well that many of the statements herein are general principles which may vary on a case by case basis.