by Ellen Carroll on March 18, 2009

Chick-fil-a, Financial, Food, Saving Sense

The next few weeks we’ll be taking Grandma’s advice and getting back to the basics, simplifying life by mastering basic financial strategies. This week we’ll be talking about one of my dearest loves: food. Those who know me personally know that I have a deep, on-going love affair with Chick-fil-a. Their juicy nuggety goodness has been a weakness for me my entire life, but particularly since I moved within a mile of one.

I think it’s obvious that I’m not the only American with a love of fast food. With tasty fried meals conveniently placed every half block or so, it’s become a staple of our society. I’ve found (at least in my own family’s experience) that the convenience of a quick meal can become more than just an addiction — it can be financially draining before you even realize it.

Last week I asked you to gather up all your receipts and get ready for this week. Now that it’s finally Wednesday again, I’ll end your suspense. It’s time to start cutting your bills substantially. I’m not going to lie, for some of you this is going to be seriously painful (just like it was for me). Not necessarily because it’ll be hard to do, but it may be hard to see just how deep you’ve gotten. Alright, here we go…

The first part of conquering any addiction (and yes, I mean that literally here, even though we’re talking nuggets and cheeseburgers) is having a real understanding of your position. If you’ve got access to online banking, that may be the easiest way to do this. Pull up your statement and grab a notebook and writing utensil. Here comes the hard part: scan through your activity for the last 30 days. How much did you spend eating out? Groceries? Gas? Write all these amounts down (and count the number of times you spent in each category) and be prepared to gasp. What percentage of your income is being spent on instant gratification via fast food?  The first time my husband and I did this, we noticed that we had spent nearly $500 in ONE MONTH on fast food. (It hurts to actually have to type that, by the way.) We spent almost that much at the grocery store, too. There were some days that each of us would use our separate debit cards to grab something quick while we were out. $5 dollars here and there surely wouldn’t hurt.. Looking back, $1000 could have made a major dent in something important, like car payments or credit card debt.

The fact of the matter is that the majority of America spends up to 30% of their income on fast food alone.  That is incredible, considering that it doesn’t include grocery bills. So what can be done? The answer is obvious, but easier said than done. It’s time to stop swinging by the drive-through and head home instead. Of all the expenses that are associated with normal life, fast food is usually the quickest to be justified and dismissed, without a second thought. That’s the problem, too. When something becomes part of our routine, we forget to think about the ramifications of such a simple action.

When my family went from two (fairly substantial) incomes to one, my husband and I knew it was time to make some adjustments and sacrifices. We were prepared to do what we had to do and take drastic measures. We evaluated (for the first time ever) EVERY cent of our non-budget and saw that the one thing we could do immediately was cut the fast-food. We made a pact that we would simply not eat out anymore. It was done, a thing of the past. We had good intentions, but it just didn’t work out.

At this point, I feel like I should remind my readers that the number one issue in marriages and serious relationships is money. Everyone knows this, but it continues to be a struggle that a lot of couples (notice the skyrocketing divorce rates) just don’t know how to deal with. The clue to having a successful relationship is cutting away the tension and emotions that can erupt over everyday expenses. It’s been two years since my husband and I shifted to our new lifestyle and we are by no means where we want to be yet, but we’re closer. It’s taken a long time (as success usually does) but here are some tips I’d like to pass along:

1. Stop using plastic! One of the evil enablers of habit-spenders is the debit card. It’s easy to justify using it, since the money actually exists in your bank account and isn’t prone to huge interest rates. The problem is that a lot of people don’t track how many times they use their debit card each day. (My husband and I noticed some days that our debit cards were used 10-12 times!) Even though it may be a small purchase of just a dollar or two, the dollars add up quickly and usually go under the radar. Grandma says use cash!

2. Don’t try to quit cold nugget. If you’re used to eating out several times a week, don’t try to cut that to nothing. Some very strong-willed people (bless them) can handle this, but for the majority of us, it won’t happen. Instead, decide on an eat-out day and set aside money for that.

3. Put it in perspective. This is much easier to do once you’ve assessed your finances and determined just how serious the problem is. My husband and I were spending a lot on fast food, and got nothing out of it. It was basically money flushed away. There was no long term fulfillment on a huge investment. When you think of it that way, it’s easier to keep yourself from spending the money you worked hard all week for on nuggets that will be gone in a few minutes.

4. Reward yourself! This is perhaps one of the most important ideas when it comes to reforming habits. Without incentive, what’s the point? Of course, having more money in your bank account is a plus, but even that rush may not be enough. Give yourself a goal, and a reward when you reach it. Make sure your reward matches your effort, though. Try to make it less about money and more about satisfaction. For example, if you manage to save an extra 50 bucks by not eating out, don’t go buy new shoes.

Times are tough, we all know it. As silly as it might seem to start with something like fast-food abuse instead of stock exchanging, I started here because this is where my family’s financial reform began. It’s not as glamorous as investing, but I believe very much that if Americans are going to survive this economic crisis, it’s time to start looking at the little stuff. Often it’s the little stuff that slowly smothers you and causes irreparable damage. Tomorrow, we’ll have a follow up on food spending and we’ll talk about how to make your grocery budget really work for you and eliminate wasteful spending. It’s simple stuff, but it’s a start.

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