Food: How to Feed Yourself Without Feeding Your Expenses
The Third Big Expense Category
We've covered housing and transportation, the two biggest expense categories for most people. Today we're tackling the third: food.
This was the hardest category for me. I was fine with having a smallest apartment and an older car. But how was I supposed to live without restaurant meals? I hate sad sack lunches. Trying new foods was a huge part of my weekends!
The average American household spends about $4,600 per year on groceries and another $3,500 on dining out. That's over $8,000 annually, or about $200,000 needed for your FI number using our 25x rule.
But here's what makes food expenses different from housing and transportation: optimization often makes you healthier AND wealthier. Most food cost-cutting strategies involve eating more whole foods, cooking more at home, and consuming fewer processed items, all of which are better for your health.
It's one of the rare areas where being frugal aligns perfectly with being healthy. We’ll be covering healthcare costs in a future post, but for now, just recognize this as a double win! (Transportation can also be a double win if you switch from driving to biking or walking.)
Why Food Costs Matter More Than You Think
Unlike housing or transportation, food expenses are highly controllable and immediate. You make food decisions multiple times per day, which means small improvements compound quickly. You may not be able to switch apartments this week but you can definitely change your eating habits.
The restaurant multiplication factor: Most restaurant meals cost 3-4x what the same meal would cost to make at home. That $15 lunch could be a $4 homemade meal. When you eat out, you’re paying for the space, the staff, the ingredients, the supplies, etc.
The convenience tax: Pre-packaged, processed foods typically cost 2-3x more than whole ingredients. Those $6 frozen dinners could be $2 worth of ingredients. Now you’re paying for the container, the manufacturing line equipment, and the ingredients.
The waste factor: The average American throws away 20% of the food they buy. That's literally throwing money in the trash. It’s just like allowing a leaky faucet to run.
The health dividend: Better food choices often reduce healthcare costs, medication needs, and sick days. You're investing in your future self. This is potentially the big one. More research comes out every day showing that the Standard American Diet (SAD) is making us sick. I’m not a healthcare expert, but I’ll share my own experience later.
Category 1: Easy
Cook More at Home
Even if you're a terrible cook, homemade meals cost a fraction of restaurant meals. Start with simple recipes like pasta with marinara sauce, scrambled eggs, grilled chicken with rice. There are thousands of recipes that use a small number of ingredients and are easy to make.
Plan Your Meals
Spend 15 minutes each week planning meals and making a shopping list. This single habit can reduce food spending by 20-30% by eliminating impulse purchases and food waste.
Buy Generic/Store Brands
Generic products are often made by the same manufacturers as name brands, just with different packaging. Switch to store brands for staples like rice, pasta, canned goods, and cleaning supplies. It’s the exact same product inside.
Shop the Perimeter
Most grocery stores put whole foods (produce, meat, dairy) around the perimeter and processed foods in the center aisles. Focus your shopping on the perimeter. Packaged goods are typically more expensive and less nutritious.
Use a Shopping List
Never shop hungry, and stick to your list. Grocery stores are designed to encourage impulse purchases. Having a plan helps you resist. Why do you think the checkout line is full of candy and magazines?
Check Unit Prices
Don't assume bigger packages are cheaper. Look at the price per ounce or pound. Most stores list both the total price and the price per unit. Sometimes smaller sizes are actually better deals, especially when things are on sale.
Category 2: Medium
Batch Cooking
This is the tip for those of you who say you don’t have time to cook. Make it in advance and in bulk! Cook large quantities on weekends and eat leftovers during the week. Make a big pot of chili, soup, or stir-fry that provides 4-6 meals.
Buy in Bulk (Strategically)
For non-perishables you actually use, bulk buying saves money. Rice, dried beans, oats, and frozen vegetables are good bulk candidates. Don't bulk buy things that will spoil. For example, grocery store berries are notorious for growing mold within a week.
Embrace Cheaper Proteins
Eggs: Often the cheapest protein per gram
Dried beans and lentils: Extremely cheap and nutritious
Chicken thighs: Usually half the price of chicken breasts
Ground turkey: Often cheaper than ground beef
Canned fish: Tuna and salmon are affordable protein sources
Seasonal Shopping
Buy produce when it's in season and cheaper. Strawberries in December cost 3x more than strawberries in June. Learn what's seasonal in your area.
Reduce Food Waste
Use leftovers creatively (yesterday's chicken becomes today's chicken salad)
Freeze items before they spoil
Use vegetable scraps for homemade broth
Plan meals around what's already in your fridge
Strategic Restaurant Choices When you do eat out, choose wisely:
Happy hour specials and lunch portions
Ethnic restaurants (often better value than American chains)
Split large portions or take half home
Skip appetizers and desserts
Drink water instead of $3-5 beverages
Category 3: Hard
Grow Some of Your Own Food
Even apartment dwellers can grow herbs, lettuce, and tomatoes. A $2 packet of basil seeds can provide $50+ worth of fresh herbs over a season.
Join a CSA or Shop Farmers Markets
Community Supported Agriculture (CSA) shares can provide fresh, local produce at lower costs than grocery stores. Farmers markets often have better prices, especially near closing time.
Learn to Preserve Food
Freezing, canning, and dehydrating let you buy in season and preserve for year-round use. A $20 dehydrator can save hundreds on dried fruits and vegetables.
Category 4: Extreme
Intermittent Fasting
Note: I am not a doctor! This is not medical advice! Some people eat one meal a day (OMAD) or practice 16:8 intermittent fasting. This can significantly reduce food costs while potentially providing health benefits.
Foraging
Learn to identify edible wild foods in your area. Many "weeds" are actually nutritious and free. Obviously, be extremely careful and get proper education first.
Food Rescue/Gleaning
Some organizations rescue food that would otherwise be thrown away. Apps like Too Good To Go connect you with restaurants selling surplus food at deep discounts.
Extreme Couponing
With enough time investment, some people essentially get groceries for free through strategic coupon use. This is time-intensive but can work for the right person.
Dumpster Diving
I'm not recommending this due to safety and legal concerns, but grocery stores are notorious for throwing away perfectly good food. This will vary by location, but certain stores are fine with you taking it. Often they throw it out at certain regular times, allowing you to plan.
General Savings Tips
Master Cheap, Filling Meals
Learn to make satisfying meals from inexpensive ingredients:
Rice and beans with spices
Pasta with homemade sauce
Oatmeal with fruit and nuts
Soup made from dried beans and vegetables
Eggs prepared multiple ways
Eliminate Expensive Habits
Make coffee at home instead of buying it out ($5/day × 365 = $1,825/year)
Pack lunches instead of buying them ($12/day × 250 workdays = $3,000/year)
Skip the daily snack/drink purchases
Strategic Grocery Shopping
Shop multiple stores for the best prices on different items
Use apps like Ibotta or store loyalty programs
Stock up during sales on non-perishables
Shop discount grocers like Aldi or ethnic markets
The Psychology of Food Spending
Food decisions are heavily influenced by emotions, convenience, and social pressure.
Emotional Eating: Stress, boredom, and celebration often lead to expensive food choices. A bad day at work becomes a $30 takeout dinner.
Convenience Premium: We pay huge markups for convenience. Pre-cut vegetables, pre-made meals, and grab-and-go options cost 2-3x more than doing the prep yourself.
Social Eating: Going out to eat is a social activity, making it hard to optimize purely for cost. The key is being intentional about when you're paying for the social experience versus just feeding yourself.
Status Signaling: Some people use expensive restaurants, organic labels, or specialty foods to signal status or identity.
My Personal Food Evolution
I mentioned this was my hardest category. In 2014, I was eating out for every meal. I would grab a bagel for breakfast, a falafel wrap for lunch, and some Indian for dinner. Even worse, I often used DoorDash. I told myself I didn’t have time to make food because I was so busy, but I also really enjoyed eating tasty food that I couldn’t replicate at home. My wife worked the late shift at the time, so we weren’t eating meals together. Cooking for one made it even harder.
When I first started tracking expenses, I was spending about $1,200/month on food for just myself. This was entirely spent eating out.
Here's how I optimized over time:
2014: Started cooking dinner 3 days/week. Saved about $350/month.
2015: Started cooking dinner 6 days/week. Saved another $350/month.
2016: Meal planning and bulk cooking on Sundays. Cooked larger dinners and started eating leftovers for lunch during the week. Saved another $200/month.
2017: One dinner out and one weekend breakfast out each week. Saved another $50/month.
Current: 100% at-home except for special occasions. We eventually started preferring our own food, but I’ll share some of the pitfalls of restaurants on health later.
Today I spend about $300/month for groceries. It was $250 a few years ago, but you know, inflation. This is for one person. We actually spend $600/month for two, but that makes the numbers more confusing since the $1,200 was just me.
Total reduction: From $1,200/month to $300/month = $900/month savings Annual savings: $10,800 Reduction in FI number: $270,000
Bonus: My diet improved dramatically. I lost weight, had more energy, and felt healthier overall. My health journey will come later.
Sample Low-Cost Meal Ideas
Breakfast Options:
Oatmeal with banana and peanut butter (~$0.75)
Scrambled eggs with toast (~$1.00)
Greek yogurt with frozen berries (~$1.25)
Lunch Options:
Rice and beans with salsa (~$1.50)
Pasta with marinara sauce and parmesan (~$2.00)
Soup and sandwich (~$2.50)
Dinner Options:
Chicken thighs with roasted vegetables (~$3.00)
Spaghetti with meat sauce (~$2.50)
Stir-fry with whatever vegetables are on sale (~$3.50)
These aren't gourmet meals, but they're nutritious, filling, and cost a fraction of restaurant equivalents.
Common Food Spending Mistakes
Shopping Without a Plan
Going to the grocery store without a list and meal plan leads to impulse purchases and food waste. Plus, you end up with ingredients that don’t go together. Watermelon and gravy?
Buying Organic Everything
Read the research. Not all organic foods are the same. For example, organic bananas are probably just wasting your money versus conventional bananas because they have an inedible peel. Organic can be worth it for some items (the "Dirty Dozen"), but it's often unnecessary and expensive. Focus your organic budget on items that matter most. It took some practice, but now we know when we can save the money.
Confusing Wants with Needs
You need calories. This is not a health publication, so I won’t go deep into the ideal macronutrient makeup, but these calories can come from a variety of sources. So, you can obtain your calories from this $19 gourmet strawberry or for the same price, purchase 38 pounds of rice. I’m not suggesting eating beans and rice for every meal, but you don’t need to be buying artisanal fruit from Whole Foods.
Emotional Restaurant Spending
Using restaurants (or bars) to solve problems (stress, boredom, lack of planning) instead of for genuine social experiences or special occasions. Humans bond over food. However, you probably bond more by cooking a meal together than eating out because it’s the default option. Come up with less expensive ways to gather with friends and family.
Action Steps by Comfort Level
This Week:
Track every dollar you spend on food
Plan meals for the next week and make a shopping list
Try cooking one meal at home that you'd normally buy out
This Month:
Calculate your true food spending (groceries + restaurants + coffee + snacks)
Learn to cook 2-3 simple, cheap meals well
Try shopping at a discount grocer or ethnic market
This Quarter:
Implement meal planning and batch cooking
Reduce restaurant spending by 25%
Master 10 cheap, healthy meals you actually enjoy
This Year:
Optimize your food spending to align with your FI goals
Consider growing some of your own food
Develop cooking skills that make home meals more enjoyable than restaurant meals
The Bottom Line
The goal isn't to eat rice and beans every meal for the rest of your life. It's to be intentional about food spending so you can afford the life you actually want.
Every $50/month you save on food reduces your FI number by $15,000. That brown bag lunch might not seem glamorous, but it could help you retire months or years earlier.
Next time, we'll move beyond the Big Three expenses and talk about optimizing all the smaller categories that add up to big money: subscriptions, insurance, utilities, and everything else.
Until then, your homework: Track every dollar you spend on food for one week. Include everything: groceries, restaurants, coffee, snacks, everything. You can't optimize what you don't measure.
Here's to feeding your body, not your expenses,
Max