Feb 252017
 

In the game of building wealth you either earn more or spend less. Not everyone can easily earn more, but anyone can spend less. I’d wager that if you are reading this right now you eat food. Did you know you can make your own food? If you want to get serious about building wealth you’d better start. It might be the easiest and most effective way to save money.

20160130_102608

Gourmet homemade breakfast: Two fried eggs with onion and spinach, everything bagel with peanut butter and jam, and tomato juice. Total cost ~$1.50 Estimated restaurant cost $5

“But Mr ProfitMoose, I’m a terrible cook, I burn spaghetti!” Ignorance is a terrible reason to not do something. What you are saying is “I can’t follow basic instructions”. Whatever you want to cook, just type it into google with “recipe” and you’ll be inundated with cooking instructions. Other reasons NOT to cook:

  • Don’t know what to cook? – Cook what you normally get from restaurants, or search google for “easy recipes”
  • Don’t know what spices to add to make it good? – Follow the recipe
  • Always missing ingredients? – Go to the grocery store with a shopping list
  • Don’t have time? – You have time to read finance blogs
  • Don’t like washing dishes? – Get a dishwasher (the machine not a person). Or suck it up and just do them. You’re an adult (presumably)
  • Constantly burn food? – Set a timer on your phone
  • Scared of burning your house down? – Get a fire extinguisher and smoke detector
  • Someone does your cooking for you? – Well lah dee dah. But is this person going to be with you at every meal time your whole life?

“Whatever Mr ProfitMoose, I choose to ignore your fancy logic and reasons. I still don’t like cooking” You need someone to hold your hand. What about getting everything delivered right to you? The latest trend are companies like Chef’s Plate that will deliver everything you need to cook a specific meal in a refrigerated box right to your door(although it can be expensive). Why not learn how to make a few of these meals then buy the ingredients yourself?

Modified Kraft Dinner dinner: Kraft Dinner + Extra Macaroni + Italian Sausage + Frozen Mixed Vegetables + 2 Avocados + Pineapple + 1 can of Black Beans + Mustard Greens + Garlic + Random Spices = Delicious. Estimated cost per meal for 5-6 meals ~$3. Estimated restaurant equivalent cost ~$10

“Well Mr ProfitMoose, I’d rather put cooking time into things that make me MORE money” Cooking has so many benefits beyond saving money:

  • Learn a practical skill
  • Impress the opposite (and/or same) sex
  • Social bonding time with a cooking partner (see above point)
  • Know exactly what you’re eating (compared to more mysterious restaurant ingredients)
  • Custom flavours (add as much garlic as you want!)
  • Custom portion sizes
  • Supercharge your healthy eating
  • Personal satisfaction through creation

I see too many friends and colleagues eating out for every meal yet saying they don’t have time to cook. What if you spend 2-3 hours cooking meals for the next 6 days? (including buying groceries, cooking, and cleaning). Spread out over 6 days that’s about 25 minutes per day, and I’d guess that the time spent in a restaurant (including travel time) is more than 25 minutes (unless you only get delivery).

FINANCIALS OF COOKING

Lets make up some rough numbers for cooking and eating out, starting with eating out:

  • $9  – Breakfast sandwich + coffee/tea
  • $12 – Lunch
  • $3  – Afternoon snack
  • $15 – Dinner
  • $3  – Evening snack
  • $42  –  DAILY TOTAL

The average employers budgets a daily food allowance of $50 for travelling employees, so I’d say my estimate is good. What about cooking yourself? I’ll make up some numbers based on my typical meals:

  • $0.15/cup – home brewed coffee or tea
  • $1  – bagel with creamcheese and 2 eggs
  • $4  – two sandwiches (from $3 loaf of bread, $5 meat, $0.50 tomatoes, $1 lettuce that makes roughly seven sandwiches)
  • $1.50 – yogurt, fruit
  • $4  – dinner ($3 spaghetti, $3 sauce, $3 ground beef, $7 assorted vegetables and potatoes on the side that lasts four meals or more)
  • $2  – mixed nuts or toast/fruit
  • $12.65 DAILY TOTAL

DIFFERENCE: $29.35

So based on my estimates you can save an average of $30 per day by cooking everything yourself. Let’s be conservative and cut that in half to $15/day, or roughly $100/week. That’s $5,200 per year. That alone will nearly fill your TFSA! Now lets invest it at 7% return for 30 years:

  • $100/week
  • 7% return
  • 30 years
  • Result: ~$510,000

Half a million seems like a good enough reason as any to start cooking. And you’ll live longer to enjoy it if you are eating healthy.

Spam your friends:
 Posted by at 7:17 am

  3 Responses to “SAVING HACKS: COOKING”

  1. Plus if you cook things, you can collect that precious grease….

    https://youtu.be/FcRTP-vRXJM

    No, through savings and wise investments…of course with grease!

     
  2. […] out ever again. That should reduce food expenses by around 2/3 according to my other food post (SAVING HACKS: COOKING). We can make better food than the disgusting poison they serve in restaurants […]

     

 Leave a Reply

(required)

(required)