Perhaps you have never thought of making a budget for dining out. People generally set by a certain amount of money to be spent on restaurant food. Well, if you want a budget to work for you, you should try to create a budget for each category separately.
It is not surprising to know that people spend a third of their income on dining out. It also includes takeaways. If you are looking to cut back on your expenses, you will have to consider your budget for dining out.
By looking at your expenses for the past couple of months, you will find that you spent a lot of money on food. You do not realise it because it hardly matters to pay £5 for a cup of coffee that you order once a while, but the cost quickly adds up when it is combined with lunches and dinners.
It is not necessary because you can have a homemade meal or homemade coffee. This is why it becomes crucial to carefully analyse how you can carefully whittle down your dining expenses.
How to make a budget for eating out
If you eat out occasionally, for instance, once or twice a month, you will perhaps not need to bother about it. This will not affect your budget, but it should raise alarm bells if you go out almost every weekend.
You will likely end up running out of money during financial emergencies. Although you can take out loans for bad credit no guarantor on benefits, it does not mean that you will not put by money. It is crucial to have an emergency cushion for a rainy day, and it can be pretty challenging to do so if you splurge on dining out. Here are some tips to follow to make a budget for eating out:
- Set a fixed limit for dining out
Grab your bank statement for the past couple of months to calculate the average cost of eating out. Unless you know how much you spend on restaurant food, how will you be able to set aside money for it? Once you have determined the average spending on dining out, the next step is to figure out how much you need to cut down.
Based on your regular expenses, you should see how much you can easily spend money on eating out. Just because you can splurge on it, it does not mean that you will spend the whole of that money. Your purpose is to cut back on your eating out budget, and hence you should keep it as minimal as possible.
If you go to the restaurant every weekend, you should bring it down to twice a month and then probably once a month if you can. If a special occasion falls on a particular month like someone’s birthday or your wedding anniversary, you should mark that day for eating out and try to avoid going out the other day.
Setting a fixed limit for your food does not mean that you have to use it up outright. You can transfer the left money to your emergency cushion. You will likely see rapid growth in your emergency cushion.
This is quite essential if you have taken out very bad credit loans no guarantor no broker to meet your expenses. If you save money on each category, you will be able to see improvement in your emergency cushion.
- What to eat and when to eat
What you eat and when you eat at the restaurant can actually cut back on your dining cost. If you go out during the week instead of the weekend, you will likely be able to save money. Some restaurants do charge fixed prices throughout.
During the weekends they increase their prices. You should try to go on the weekdays. Some restaurants can offer you special discounts that they do not provide at the weekend. Further, dinner will likely be more expensive than breakfast and lunch.
Likewise, you need to be careful about what you are ordering. When you pick the menu, you just order your favourite dishes without bothering about the price. Well, when you go to the restaurant, you do not need to stick to your favourite dishes.
You should try to order other dishes as well that are more affordable. You do not need to be shy about ordering something that does not cost you much. Further, you should be careful about the quantity of the food. Restaurants usually serve dishes in too much quantity.
Most of the time, it is not possible for you to consume the whole of it and let it be on plates. This is simply a waste of food and waste of money. If you want to save money on eating out, you should be careful about ordering quantity.
- Reduce other expenses to make dining out budget
Once in a while, dining out is not possible for those who love it so much. The initial approach will be bringing it down to twice or once a month. If you love eating out too much, you will not be able to stick to this principle. Of course, in this situation, your budget will likely go up.
In order to meet the cost of eating out, you will have to reduce other expenses. You should look at your bank statement to see how much and where your money goes. Make a list of all costs and then leave out essential expenses like rent, debt obligations, and the like.
You should carefully figure out what you can reduce. You should try to cut back on your discretionary expenses so you can save that money for your food bills. Here is what you can do:
- You should try to cut back on subscriptions that you do not use.
- Try to set aside a limit for your restaurant bills and make sure you stick to it. You should try to avoid going beyond it.
- Use coupons and discounts. There are various restaurants that offer happy codes and discount vouchers that you can take advantage of.
- Avail of free dining opportunities. Some restaurants offer free meals on special occasions.
The bottom line
Even though you think that it is worthless making a budget for eating out, the fact is that you can save a lot of money with it. You should try to set aside a particular limit for your dining out, so you do not overspend money.
However, make sure that you do not compromise with your emergency cushion. Try to cut back on your discretionary expenses if you are fond of eating out every other day. You should try to maintain a balance, so you do not splurge on food bills.
Never forget that life can throw you a curveball at any moment. You may need a large amount of money at any time, and hence it is crucial to have an emergency corpus. If you keep dissipating money on restaurant food, you will eventually find it challenging to have an emergency cushion. Make sure that you carefully plan for the budget of each expense.