What a $75.00 Meal Really Cost You

Last Saturday, my wife and I went out for lunch and spent $75. It got me thinking about how small spending choices like this can add up and affect your financial goals.

It was unseasonably hot, even for Florida standards, so inside was a must. Fortunately, we found a nice spot called Sawgrass Tavern. It was part of a golf course community and very nice inside. It was a little more than fast food would've cost, but the atmosphere was great, the food was very good, and the beer was cold. It was a great date with my wife.

The bill with tip was $75. Not cheap, but not over the top either. It was worth it, and we'll go back again. One point I want to make: this was entertainment. It was a great time to sit, connect with my wife, talk about our four kids, and enjoy the moment.

But I got to thinking about that $75. What impact could that have on someone trying to pay off debt or get ready to purchase a home? Let's make some assumptions. Say you do this every paycheck, or every other weekend — that's $150 a month on two meals. Imagine you have $6,500 in credit card debt. If you skip one $75 meal each month and put that money toward your debt, you could pay it off in three years instead of still owing over $4,200.

The point is, the little things add up.

Now imagine Todd. Todd's got the same $6,500 in credit card debt. Same paycheck. But Todd doesn't skip the $75 meal — not because he can't, but because he never stopped to ask what it was costing him. Three years from now, you've paid it off. Todd's still got $4,200 left, wondering where the last three years went.

Chris

I'm a licensed Florida real estate pro sharing education from my own experience, not lending or credit-repair advice. Your real numbers are a conversation with your lender.