Personal Finance

If you're someone who spends a lot of money going out to eat, finance expert Suze Orman has some words for you

Maurie Backman

Published: January 25, 2025 10:33 am

Of the various things I choose to spend money on, dining out is probably my biggest splurge. This doesn’t mean that I spend more on restaurants than, say, my mortgage. Rather, in the context of non-essential spending, dining out is probably my biggest indulgence. And there are a couple of reasons why.

First, though I’m a fine cook, there are certain dishes I’ve yet to master. And since I like enjoying different cuisines, it’s nice to be able to leave that cooking to the experts.

Also, while I happen to like cooking, I don’t particularly like cleaning. And there’s no doing the former without the latter. So for this reason, I’m sometimes pretty quick to say to my husband, “Let’s round up the kids and go out tonight” or order in when I’m just not feeling it.

At the same time, though, I make sure our restaurant spending doesn’t get out of hand. And if you’re someone who tends to spend a lot on dining out, it’s important that you do the same.

The problem with overspending on dining

Clearly, I understand the benefits of dining at restaurants. In addition to the perks I outlined, there’s also the social aspect.

The problem, though, is that dining out can be a very expensive habit. And if it’s a habit that’s getting in the way of your financial goals, then it’s a problematic one.

Think about the last meal you ate at a restaurant. Now, imagine cooking the equivalent at home. If your restaurant check cost you $30, chances are, you could’ve pulled off that meal at home for $15 or less — and still had leftovers. So if you’re not saving at a pace you’re happy with, yet you’re constantly going out for meals, I’d suggest that you try to approach dining out the way financial guru Suze Orman does.

Orman says, “I really do not like to spend money to go out to eat.” And that’s not the only area of life where she’s frugal. She also tends to keep the cars she buys for a long time to get maximum value out of them.

As Orman says, “When you honor money, no matter how much money you have, then your money turns around and honors you.” So if you put more of your money into your savings and investment portfolio and less into restaurants, it could potentially spell the difference between meeting your financial goals, like retiring comfortably, versus falling short.

It’s all about striking a balance

I’m not going to tell you to stop dining out, period. We all need a break from cooking once in a while, and it’s okay to treat yourself to a fun activity like going to a restaurant to socialize.

What I’d suggest doing, though, is taking a look at your monthly restaurant spending and seeing what it amounts to. And then, take a look at how much money you’re saving and investing each month and ask yourself if you’re happy with it.

If you’re able to dine out a lot but also save a lot, then I suppose there’s no need to make changes. But if you’re barely funding your IRA and your savings account balance is pretty low, then you shouldn’t keep spending a big chunk of your pay on restaurants when those goals aren’t being met.

In that case, make a compromise. If you typically dine out four nights a week, cut back to two. If you go out to lunch with colleagues every day during the workweek, pack a lunch three times and week and join them the other two afternoons.

And if that really doesn’t work for you, consider a side gig to boost your income and savings. That way, you can have your cake — or, in this case — entree — and eat it too.

Finally, if you’re struggling to meet your financial goals, consult an advisor who can help you get on track. An advisor can review your total spending and help you prioritize where your paycheck goes so you’re able to make the most of it without denying yourself the little things in life that make you happy.