In a world where convenience often trumps cost-consciousness, dining out has become a prevalent aspect of our daily lives. 

Whether it's grabbing a quick bite on the way home or enjoying a leisurely dinner with friends, the allure of restaurant meals or ordering take out is undeniable. However, what if I told you that a simple change in your dining habits could significantly boost your financial well-being? 

By cutting down just 20% on eating out each month, you can unlock a powerful money-saving hack that can pave the way for debt reduction and a more robust savings account.

So how do you do this? Pull out last month’s bank statement and add up your charges related to dining out, ordering take out, buying coffee, or even picking up snacks at the gas station. You will be surprised how much all of these treats can add up to! Once you have your total, multiply it by .80, and that number should be your new budget each month. 

While cutting any budget is never fun or easy to do, this one hack that still allows you to gain control over your food expenses while allowing you to enjoy occasional dining experiences without completely sacrificing the pleasure of restaurant meals. This small adjustment can yield significant savings over time, especially when you consider the cumulative effect it has on your monthly budget.

One of the most compelling reasons to embrace this money-saving hack is the positive impact it can have on your debt repayment journey. The money you save by reducing your dining out expenses can be channeled towards paying down outstanding debts. Whether it's credit card balances, student loans, or other financial obligations, allocating these funds strategically accelerates your debt reduction efforts.

Beyond debt reduction, cutting 20% from your eating out budget creates an opportunity to build a solid savings account. Establishing an emergency fund or contributing to existing savings goals becomes more achievable when you redirect funds from discretionary spending. A robust savings account acts as a financial safety net, providing peace of mind and protection against unforeseen expenses.

By adopting the 20% rule for cutting down on eating out, you're not just making a short-term adjustment; you're laying the foundation for long-term financial well-being. The extra funds redirected towards debt reduction and savings gradually compound, creating a positive snowball effect that sets the stage for financial stability and freedom.

So, why not savor the flavor of financial freedom by making a conscious choice to dine in and save more?

About Eric Berner:

Prior to working in financial services, Eric managed operations in the transportation and distribution industries. In these roles, he managed large employee populations and spent hundreds of hours with individuals facing wage garnishments, levies, income tax arrearages, and foreclosures. Eric’s experiences helping employees work through these issues, as well as a variety of personal tragedies, gave him an appreciation and understanding of the impact financial wellness has on individuals and their families during times of stress and suffering. Eric is one of the owners of Rock Castle Wealth Advisors and is a Certified Divorce Financial Advisor (CDFA).