Feb 262018
 

Eating restaurant food doesn’t have to be expensive. Follow these simple steps to save 30% or more on your next restaurant meal. 🙂

  1. Pick a restaurant that offers a 10% discount if you pick up your take out order.
  2. Contact the restaurant and tell them what you want to eat.
  3. Go retrieve your food and bring it back to your home.
  4. Enjoy your meal. 😀

That’s it. You can experience authentic restaurant cuisine, while being comfortable in your own dwelling. You don’t have to dress nice or wear pants that feel tight after you eat. You can eat in your underwear if you want. Nobody will judge you. 😉

Let’s compare the costs of eating in a restaurant to eating at home using an example. Imagine we want to order $40 worth of food for 2 people from this Thai restaurant in Vancouver. #notasponsor 

Cost if we sit in at the restaurant:

  • Menu item = $40.00
  • 5% sales tax = $2.00
  • 15% tip = $6.00
  • Total Cost = $48

Cost if we pick up the food and go home to eat:

  • Menu item = $40.00
  • 10% discount = (-$4.00)
  • 5% sales tax = $1.80
  • Total Cost = $37.80

(Note: Fixed sales tax amount. Previously calculation was incorrect)

As we can see, taking out the food saves us $10.20. So if we eat inside the restaurant we’ll have to pay 27% more, or 30% if we tip 18% instead of 15%. The total cost of take out is even lower than the initial $40 figure presented on the restaurant menu. That’s a good deal! 🙂 If we go to a restaurant in Ontario we can replace the 5% GST with a 13% HST. Most establishments that offer the pick up discount will advertise it on their website. Usually there is a minimum order amount of $30 or so. This is perfect if you’re ordering for 2 or more people, and if you have access to a vehicle.

Here are a couple more restaurant examples.

If ambiance and being pampered to is important then maybe the 30% premium to eat on location is worth it. But personally the value of ordering restaurant food to me comes from not having to cook, not having to clean, and the social element of enjoying a meal together with friends or a partner. So if I receive the same economic utility by eating at home as eating out, then I’ll choose the cheaper option. In fact, eating out comes with additional potential stress factors such as rowdy restaurant patrons, paying for parking, uncomfortable seats, feeling rushed, etc. Also, my home wasn’t cheap. I paid $230,000 for it. So I should make good use of the space, especially when it can save me money by not being somewhere else. #opportunitycost.

 

Whenever I hear about a new restaurant that I want to try the first thing I do is find out if they offer a discount for pickups. 🙂

 

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Random Useless Fact:

Jun 292017
 

According to Chelsea Fagan, founder of the Financial Diet, transportation is one of the biggest unseen costs in people’s lives. Americans on average spend about “9% to 25% of their monthly budget” on transportation. That’s a pretty large portion of one’s take home pay. 😮 The surprising thing is, most people can easily cut their transportation costs down by half, according to Chelsea. In today’s post I’ll write about my new vehicle, and how I plan to save money with it. 🙂

Recent Purchase: Used Scooter

Motor scooters are like motorcycles; they can sit up to 2 people. Here in Vancouver, Canada, all you need to ride one is a helmet and a regular class 5 driver’s license which most people have already.

I started to look into buying a scooter after I drove to a restaurant last month and had trouble finding a parking spot. But I saw a scooter that sat comfortably in a small space between two cars on the road. So then I did some research and calculations, and realized that I wanted to get a scooter for economic reasons.

So earlier this month, after checking out some used scooters on craigslist I ended up buying a 2009 50cc Derbi scooter for $1,400 including tax and registration. It only has about 2,250 KM on it. It’s really enjoyable to ride and easy to control.

Here’s a photo of my new ride in Batman’s favorite color. 🙂

Cost of Owning a Scooter

Like I mentioned, I bought the scooter for $1,400 tax included, which is much more affordable than a car or even a motorcycle. The seller accepted e-transfer and the transaction went smoothly. Now let’s talk about the ongoing costs of operating it. Spoiler: It’s cheap. 🙂

Continue reading »

Jun 012017
 

Dating can be expensive. All those dinners and movies can add up over time. According to a Match.com survey of 5,500 singles in the U.S., the average unmarried American spent about $1,600 on their dating life in 2016. That’s about $133 per month. When broken down by gender, men spent $150 per month on average, while women spent $120 per month.

I recently dated a girl who expected me to spend $400 a month on her. That’s a bit much for me, and is part of the reason we are no longer seeing each other. I didn’t know if an appropriate dating budget exists, so I decided to create a poll on Twitter. Here is what I found out. 🙂

It appears 8 out of 16 people think $100 is a good monthly amount to spend on dating. 4 out of 16 thought $250 is appropriate, and the remaining 4 voters thought $400 is the right amount. Overall my poll seems to more or less reflect the results of the Match survey.

But instead of using dollar a figure, maybe a better way to determine a dating budget is to use a person’s income. For example, 5% of take home income should go towards dating. So if someone makes $3,000 a month, his dating budget would be $150/month. Or maybe each relationship is different. If we really connect with someone special then perhaps we are more willing to shower them with money, time, attention, and other resources because they are worth it.

There are no universal rules when it comes to money and dating. But it’s probably a good idea to keep your standards reasonable. According to a Chase Blueprint Valentine’s Day survey, men on average expect $230 worth of Valentine’s day presents. But women are less greedy, only expecting to receive $196 worth of gifts. However, everyone is bound to be disappointed, because on average women only plan to spend $71 and men $98 on their Valentine’s day date, lol. 🙂

If you’re single, how much do you spend on dating? What about if you’re in a relationship; how much do you spend on dates per month with your significant other?

 

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Random Useless Fact:

The division symbol (÷) is just a blank fraction. You replace the dots with the actual numbers.

Mar 092017
 

A Car Buying Formula 

Someone once said that an old car is like virginity. Once you’ve had it for over 25 years it’s kind of hard to get rid of because nobody else wants it either. 😄 But I’m not here to give relationship advice. This is a personal finance blog after all. So in today’s post we’ll discuss one of the most common questions people face; how much is appropriate to spend on a car? For most people I would recommend the following formula.

0.01s(5h+2i) = Price to pay for a vehicle

= Monthly household spending (before accounting for the potential vehicle.)
h
 = Number of expected hours the car will spend on the road per person per month.
i = Monthly cost of the auto insurance.

For example, I live pretty close to work so I only spend about 20 hours on the road each month. My car insurance costs $100/month, and my monthly household spending is roughly $2,500. When these numbers are plugged into the formula we see that I should spend about $7,500 if I were looking to buy a car today.

0.01 x $2500 x (5 x 20 hrs + 2 x $100) = $7,500

Let’s look at another example. Susan and Bob are looking to buy a vehicle. It will be used primarily for Susan to drive to work, but will also be used for shopping / recreational activities for both of them. They estimate the car will be on the road for 50 hours per month. They will be in the car together for 10% of that time. Their monthly spending is $3,200. Insurance for the car is expected to cost $150/month for the type of vehicle they are looking for. Using these numbers we discover they should budget in the range of $18,400 for a car.

0.01 x $3200 x (5 x 55 hrs + 2 x $150) = $18,400

Even though the car spends 50 hours on the road, we are using 55 hours in the formula. This is because two people are expected to use the car simultaneously 10% of the time so during those times the hourly rate of utility is doubled.

Continue reading »

Dec 072016
 

The following post is by staff writer, Peter.

Creating a budget for your household might seem to be something that is relatively simple. That being said, sticking to it is another thing entirely. If you are looking for a way to find more money in your budget for investing, traditional wisdom tells you that you have two options. You can either make more money or you can spend less money. With that in mind, there might be one more thing that you can do. You might just be able to locate money in places you didn’t look before. Take another look at your budget to locate any extra funds.

Utilities

You can always stand to save energy, for no other reason than doing your part to be more ecofriendly. The thing is, when you conserve energy, you are getting more from it than just a smaller carbon footprint. You can also save some money. Think about getting a home energy audit to find out where you might be losing energy and how to fix the issues.

Aside from that, in places that are deregulated, such as in Alberta, you can compare rates for energy from the different suppliers. Suppliers such as ATCO can be more competitive with their pricing in order to gain customers and the savings will be all yours. Depending on your rates and energy usage, you might be able to save hundreds annually.

Current Debt

You might also need to make the decision between paying off your current debt or investing for the future. While this might be a simple question, finding the answer can be a complicated process. It involves finding out how much you can save monthly by a debt reduction, your total assets and debts and the expected return annually on your assets among a few other factors. Basically, if it would cost you less in the end to reduce your debt now and invest later, versus the opposite, then it would be a good idea to do so.

Bundle It

One thing that you can do to reduce the expenses for your household is to bundle your various services. If you have internet, phone and TV services, you might find that you will reap the savings by switching all of these services to a single provider. You might get offers for this in the mail or you might see what is available in your area. This is a free service that will not only let you know what options you have, it will also allow you to compare the rates for the specific services that you need to determine your best option.

Cut Back

Is caller ID on your phone really necessary? For that matter, is a landline phone really a necessity? What about all of those premium cable channels or the highest level satellite package? Take a good, long look at your monthly expenses and see which items are necessary and which ones are just perks.

Groceries

Groceries are a necessity… and one that can take a huge chunk of your budget. That being said, they are able to be cut down. Consider starting to use coupons and price matching to get the best prices. Shop the sales. What do you think you might be able to save if you do this? For a 1st time coupon clipper, 15% might be reasonable. In time and with practice, this could increase all the way up to 50%!

Insurance Premiums

Yes, insurance is imperative, but it doesn’t necessarily need to be so darn expensive. Shop around and see if you can get lower rates on your vehicle insurance premiums. You might be able to save hundreds annually. If you can’t locate a better rate, have a conversation with your provider and determine if there are any discounts that you might be able to qualify for. For more savings, you might think about canceling collision coverage or even increasing your deductible.

You might also think about turning the things that you have read here today into habits for the long term in order to keep a tight rein on your spending. Be sure that you aren’t saying no to everything though because you will be much more likely to give up. Living within a tight budget doesn’t have to be about waiting for things, but more about spending less on those things that aren’t that imperative so that you will be able to spend more money on those things that are important to you.