How Much is Ordering Out Lunch Really Costing You?

How much is ordering out lunch really costing you? The answer may be shocking.

Here is the true cost of ordering out versus bringing lunch to work!

Bare in mind, I live in an expensive city (New York). Thus, the costs for food will vary and likely be less than here depending on where you live.

For those who don’t know, I brown bag my lunch to work every day. Meaning, I pack my own lunch (usually a sandwich).

Some of my co-workers bring their own lunch as well. In fact, I would say the percentage has gone up over the years.

Still, many of my co-workers order out food every day.

It got me thinking. How much is everyone spending and how much could everyone be saving?

Furthermore, what is the true cost of spending all that money that could otherwise be invested?

In other words, how much is ordering out lunch really costing you?

The Total Cost of Ordering Out Lunch Vs. Packing Your Own

I noticed my co-workers who order food out each day typically spend between $16-$25 per day on lunch. (Yes, I have seen the receipts)

So, with that in mind, lets look at the numbers.

At the minimum ($16), they are spending $80 per week, or $320 per month, which adds up to $3,840 per year.

Imagine if you worked for 20 years and spend that each day. That would equal $76,800 spent on lunch. At 30 years, that’s $115,200 spend on lunch over a lifetime of work.

At the maximum ($25), they are spending $125 per week, or $500 per month, which adds up to $6,000 per year.

Imagine if you worked for 20 years and spend that each day. That would equal $120,000 spent on lunch. At 30 years, that’s $180,000 spend on lunch over a lifetime of work.

Meanwhile, I bring a sandwich to work each day.

I spend roughly $8.00 on meat and $6.00 on bread (including taxes and rounding the number out).

So, $14.00 total a week I spend on lunch. This breaks down over 5 work days to spending roughly $2.8 per day on lunch.

To take this further, I spend about $56 per month, or $672 per year packing my own lunch to work. At 20 years of working that would be equal to me spending $13,440 on lunch.

The True Cost: What Most Don’t See

What if you decided to make a change? What if you decided to take what you are spending on lunch each work day and put that into investments?

The stock market has returned an average of roughly 10% over the last century.

If you are spending $16 per workday on lunch and committed instead to invest that same amount in the S&P 500, how much would you have in the end?

Well, after 20 years of compound interest you would have built up over $267,000 in wealth. After 30 years, you would have built up over $761,000!

If you are spending the $25 per workday on lunch and committed instead to invest that same amount in the S&P 500, how much would you have in the end?

Well, after 20 years of compound interest you would have built up over $418,000 in wealth. After 30 years, you would have nearly $1.2 million!

Is ordering your chicken wraps, soda, and fries each day really worth $1 million of potential future wealth?

You decide.

Conclusion

How much is ordering out lunch really costing you? Potentially, a small fortunate that could fund (early) retirement and enjoyment of life.

People don’t often think about the small costs of things. Sure, it’s just a cup of coffee.

But when you consumer 2-3 cups a day at work, 5 days a week, for the next 20 years, that adds up to an enormous amount.

That money is spent and gone forever. Worse, whatever future money that money could have generated via investments is also gone.

I would never say don’t ever order out a good lunch. Heck, enjoy it!

However, be mindful of your spending (especially if you are in poor financial shape). And be aware of the hidden potential your money has.

For myself, I invest the money I save into dividend growth stocks.

• Related: How to Make $1,000 a Month in Dividends

Over the past 5 years, I’ve built a six-figure portfolio that generates a yearly average of over $1,100 per month in dividend income!

That is passive income that I earn while I sleep.

If you are interested in beginning your own journey into dividend growth investing, personal finance, and financial freedom, check out my Getting Started page.

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So, what do you think of this post? Do you bring your own lunch to work? Also, what small ways how you found out to save money?

Let me know in the comments below!