Dining In vs. Eating Out

Introduction

Food is probably the most important thing in your budget. And there’s a good chance it’s one of the biggest line items in your budget, too.

Whether you tend to dine in or eat out, evaluating how you spend on food and making some adjustments can save you a lot of money. Let’s see the benefits each option brings to the table.

Tips for Dining In

Dining in costs less than dining out.

You probably knew that on a gut level, but the impact doesn’t really hit you until you do the math.

According to a US Foods survey, 42% of Americans spend $11-$20 for one person’s meal when dining out, with 24% spending $21-$30.

Meanwhile, the USDA’s Monthly Cost of Food Reports, which show the cost of a healthy diet at various price points, shows that it can run between $61 and $94 for an entire week of homemade meals for a single 20-to-50-year-old adult.

At three meals a day, a single homemade meal runs around $4 to $6.

Sure, there are time and skill investments involved with cooking at home and those should factor into your decision between dining in and out. But the numbers don’t lie: You can really stretch your dollar by dining in.

And with these pointers, you may be able to stretch it even further.

Buy in bulk

One good way to save money is to buy in bulk. Many items cost less per unit when you purchase a larger quantity.

You might associate this practice with warehouse clubs like Costco, Sam’s Club and BJ’s, where you can buy everyday goods in large sizes or quantities. But there’s a good chance your local supermarket stocks at least a few common items in bulk size.

Another bulk option at the supermarket comes in the form of buying nuts, coffee, beans, granola, spices and more from the bulk section. Just look for the plastic bins or barrels.

And when buying in bulk, be sure you can actually use everything you get. If it goes to waste, you’re not really saving at all.

Look for seasonal sales

During the holiday seasons, grocery stores will push traditional ingredients like spices, corn bread mix, and canned pumpkin. Seasoned shoppers know this is a great time to stock up on these items.

You’ll also find that seasonal and local fruits and veggies are often priced lower than non-seasonal produce.

Shop your pantry first

Is there a jar of simmer sauce in the pantry that you just kind of forgot about? Or perhaps you have some prime cuts waiting in the depths of your freezer.

Checking for what you already have and planning a meal with it can save you money, since it’s at least one less item you’ll have to buy. And as a bonus, you can reduce potential waste if you avoid having to toss something because it went bad.

Prep meals in advance

Whether you’re saving tonight’s leftovers for tomorrow’s lunch or setting aside a little time on the weekend to meal prep, just having some ready-to-eat meals in your fridge or freezer can reduce your desire to go out for dinner or open up a delivery app.

Join the club

It’s a good habit to look for sales and coupons in weekly ads and keep an eye out for marked down items as you shop. But at some grocery stores, you also need to join their loyalty club to get the most out of shopping there.

First off, some of the store’s sale prices might be exclusively for members. Second, some of these loyalty clubs offer perks like reward points and personalized deals. Luckily, it’s pretty much always free to join.

Earn rewards on your groceries

To take it a step further than loyalty club savings, you can consider a credit card with at least 1% cash back rewards on grocery purchases. Some cards that focus on everyday purchases may offer as much as 5% cash back rewards on groceries.

It’s nice to get a little bit of cash back for purchases you need to make anyway. Just keep in mind that most cards with grocery rewards only count grocery store purchases and not warehouse clubs, convenience stores or big-box retailers (even if they sell groceries). It’s a good idea to check your specific card’s terms to be sure.

Tips for Dining Out

Dining in may be the frugal choice, but chances are even the most talented home chefs like to take a break from cooking and enjoy the occasional meal out.

Besides, some ingredients are hard to find at the supermarket. A lot of dishes take skill or special equipment to make. And you know what? Not having to clean up afterward would be nice.

There are perfectly good reasons you may want to dine out sometimes. And there are plenty of ways to get the most bang for your buck when you do.

Sign up for emails and social media

If you have a favorite restaurant that you just can’t go without, sign up for their email newsletter and look them up on social media. This makes it much easier to stay on top of deals and promotions, plus many restaurants offer exclusive deals to subscribers.

Download the app

Unfortunately, you can’t beam mozzarella sticks from the cloud to your plate. We’re talking about the phone kind of app.

Many restaurants offer an official mobile app, especially big national or regional chains. You can usually use these to order ahead or look up the menu, and restaurant apps often feature rewards programs and exclusive offers, too.

Go for happy hour

Embracing the happy hour menu can be a great way to dine well on a budget.

Sure, there are limitations. It’s at a specific time of day, sometimes limited to the restaurant’s lounge or bar area, and likely only applies to a specific part of the menu.

But if all that works for you, it’s a great way to cut down on the cost of a nice night out.

Get discounted gift cards

Let’s circle back to warehouse club stores. In addition to bulk savings on groceries, you can often get bulk savings on gift cards, including ones for popular restaurant chains.

You usually have to purchase a pack of four or more gift cards, but it’s not uncommon to get a discount of around 25%.

No warehouse club membership? No problem. You can also find decent discounts on online gift card marketplaces like CardCash and GCX.

Bottom Line

When you look at the numbers, dining in is going to save money over dining out. But you don’t have to live life strictly by the numbers. If you like to dine out occasionally, that’s perfectly fine.

Especially if you’re getting the most out of the tips we’ve discussed. It’s a nice way to save time, treat yourself and try new things. Like many things in life, it’s all about moderation.

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