It’s May 20 and that means it’s Be a Millionaire Day. How’s that for some Monday motivation?

From the first time you turned on the television and watched the movie “Richie Rich,” to the day you actually had to start paying the cable bill, chances are the dream of becoming a millionaire hasn’t faded. Now the dream may or may not have come true, yet, but the fact that the guy at the gas station who prints the Mega Millions tickets knows you on a first-name basis says you’re still trying.  Now don’t worry, this is a non-judgment zone and you’re free to do whatever you want. However, there is an alternative way to join the millionaire’s club. Instead of paying the guy behind the counter every day, you should be paying yourself. Here are five ways you can save like a millionaire.

Pay Yourself First

Saving your money is one of the most cost-effective ways you could become a millionaire. Whether it’s a normal bank account or it’s the shoe box in the back of the closet, it all adds up. Before you spend a dime of the money you make, always pay yourself first, that way no matter what happens you’ll always have money for unexpected events.

Spend Less Than What You Earn

Be aware of your income at all times. Monitor what you have coming in and going out so that you’re putting yourself in the best position to be in the positive at the end of every month.  Put yourself on a budget and make sure you aren’t going over that budget. With advances in technology there are some pretty amazing applications you can download onto your cell phone that will allow you to check your finances on the go.

Change Your Mindset

In order to save like a millionaire, you have to change your mindset.  This action is obviously easier said than done but it’s a key component to being financially successful. Before anything is achieved you must believe in yourself and know that you can make it happen. You’ve got to believe it before you see it.  Meaning once you believe, you will likely realize your vision. Although it may not happen overnight, you need to be steadfast, diligent and willing to put in the work. When you apply yourself, you can achieve almost anything.

401(k)

If you’re not the kind of person who can save money on their own, then this money-saving alternate may be for you. A 401(k) is a personal retirement account that your employer gives you the option of obtaining. You deduct a percentage of your salary and hold it in this account until the day you retire. There are even some companies that will match the amount you put in up to a certain amount. So not only are you saving money, but your employer is also giving you free money to increase that investment.

Come Up With a Plan

Just like anything else in life, planning is always recommended. It’s important to know your end goal and it’s even more important to plan the steps that you think are necessary for you to take to reach that goal. Everyone’s road to success is different, find the route that works for you. Becoming a millionaire may take a while, but through planning you can see exactly what it will take to achieve our dream. Seeking a financial consultant may be an excellent option as well. A financial consultant will work to help you develop your plan and with their experience in investing and saving they could prove to be very beneficial. Most if not all millionaires and billionaires have financial consultants who help manage their finances in the best way possible.

Any soon-to-be millionaires want to share tips? Please leave your two cents in the section below.

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This guest post comes from the editors of the The Allstate Blog, which helps people prepare for the unpredictability of life.

When my twin girls were first born, I was so busy thinking about nap times, baby formulas and feeding schedules that the thought of saving for their education hadn’t even crossed my mind yet. I’d always dreamed they would one day attend college and receive a good education, but I hadn’t gotten around to thinking about how to fund it.

Now that my kids are in first grade, I realize that while college may seem far away, my girls will be leaving the nest before I know it — so it’s time to start saving now. Whether you’ve thought about it or not, now is the time to save for your child’s education fund. In the blink of an eye, your baby will go from wearing diapers to donning a high school graduation cap and gown.

Save Early, Save Smart

According to the National Center for Education Statistics, the cost of undergraduate tuition continues to rise. In fact, between 2001 and 2010, tuition and room and board costs rose 42% at public colleges and 31% at private institutions. As a new parent, if you want your child to attend college without being saddled with a lifetime of student loans, then making a college savings plan early may be a big help.

If you want to watch your money grow with your child, consider a realistic savings plan. It’s important not to get discouraged and to remember that every little bit counts. While the weekly or monthly deposit into a savings account you open for your child at a local bank might not look like much, it can build up over time. For example, if you were to save $7 a week ($1 a day), you would have $6,188 at the end of 17 years — not including any interest you may earn on the account. Now, imagine if you were able to double or triple that number. Seven dollars a week is less than the cost of two lattes at your local coffee shop.

Investment Plans and Financial Aid

Shop around for college savings programs. For example, 529 college savings plans offer the opportunity for your money to accumulate tax-free, which means that you won’t pay tax on the interest it earns. While most 529 plans are state-sponsored, if you have a 529 plan in your home state and your son or daughter chooses a university on the opposite coast, your funds may still apply.

When the time draws closer for your child to apply to college, student financial aid is another course of action you may want to consider. Grants, scholarships and work-study programs can help pay college bills. Loans are another option, but, of course, your son or daughter will have to pay them back. So, if the best college graduation present you’d like to give your child is a debt-free education, then exploring the other options first may be a good plan.

Saving early and saving smart can be one strategy to help you afford a college education for your child. The years can go by quickly, so picturing your baby in that cap and gown now might make paying for all those university classes a little easier in the future.

Read more from The Allstate Blog here.

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This post comes from our friends at Quizzle and their network of personal finance bloggers. Lindsay is a high school teacher and personal finance blogger. She lives, works, and plays in the Washington, D.C. area. You can visit her blog at www.teacherfinance.org or tweet her @teacherfinance. You can also read more of her work at Quizzle.com.

Modern life is stressful, fast-paced, and action-packed.

There’s always a deadline to meet, an appointment to get to, an email to return. Heck, I sometimes find myself struggling to find time to go to the bathroom during the workday, so I understand that time is scarce.

Given the hectic reality that we all have to cope with every day, the lure of paying for convenience products and services is very powerful.

Again, when bathroom breaks start to seem unlikely to fit into my schedule, the idea of preparing my own lunch and brewing my own coffee starts to seem positively insurmountable. It’s so much easier to just swing by Safeway in the morning, pick up a prepared meal and a grande vanilla latte and get on with my day. Why bother going to the trouble of doing it myself?

Well, I do bother. I bother a lot, actually. Simply put, paying for convenience is expensive. Sure, a take-out dinner here and salon manicure there only cost a few extra dollars and the savings in time makes them seem so worth it. And if you really do only indulge in these conveniences infrequently, they probably won’t bust your budget. But if you allow them too often, the costs really start to mount. Take the following example:

In a given month, let’s say you eat lunch at work 20 times. A lunch prepared at home usually costs around $2, so it costs you about $40 to eat lunch that month. But what if you purchased take-out for lunch every day instead? That would probably run you about $8 a pop, so in this scenario it costs you $160 to eat lunch for the month. That’s a difference of whopping $120 per month!

Of course, woman can’t live on carry-out noodles alone – a girl’s gotta have some caffeine to get her through the day. So let’s say you drink a large coffee every morning to kick the workday off right. A large coffee prepared at home costs about $.60 to prepare, so if you bring your coffee with you to work, it’s costing you $12 per month. But a large coffee at Starbucks goes for about $2. If you choose to let your local barista prepare your daily fix, it’s going to cost you $40 per month. That’s a difference of $28.

Now, maybe you’re thinking: “What’s $28 or $120 over the course of my lifetime? In the grand scheme of things, does it really matter?” But it’s not the $28 or $120 per se that’s the problem, it’s the cumulative effect of all of those convenience purchases that starts to seem like a waste. Using the example above, if you were to invest the roughly $150 per month that you’re throwing away on take-out food and drink in a moderate-growth mutual fund, you could end up with $291,000 at the end of a 40-year career. That’s almost one-third of the way to being a millionaire, just for preparing a few lousy lunches and cups of coffee!

So when it comes to paying for convenience, I just say no. The price tag – $291,000 – is just too high!

Read the original article here.

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Nobody likes wasting money, do they? Actually, according to a news report from Moebs Services, banks, credit unions and thrift institutions made $32 billion on overdraft fees in 2012. That’s right, $32,000,000,000! That’s a lot of zeros.

The 2012 numbers represent an increase of $400 million, or 1.3% from 2011. If you think last year’s number is staggering, it still falls short of the record $37 billion in fees set in 2009. However, at its current rate, Moebs predicts a new record-high will be set at the end of 2016.

So, if you break down the population, how much did the average American pay? Well, considering there are approximately 330 million Americans, the average American paid about $100 in overdraft fees in 2012. If you break down the population by age, keep in mind that roughly 100 million Americans are outside the legal working age and are unlikely to contribute to the statistic. This means that the average working-age population paid close to $400 a year in overdraft fees.

Perhaps what’s even more unsettling is the rise in overdraft spending isn’t due to an increase in the price of the fee. Instead, it’s resulted from a greater number of overdrafts. Of the approximately 38 million people who have a consumer checking account, the Moebs study found that the median overdraft is about $40.

Apparently people really do like wasting money. If you fall into the category of someone who has been charged an overdraft fee, there are ways to ensure it doesn’t happen again. You can start by checking your account statement on a regular basis. In today’s world of smartphones, this task can be done in a matter of seconds without a trip to the bank or an ATM.

There are many ways to overdraft your account. The most common way is to withdraw more money from your account than you have. You can opt in for overdraft protection, which will allow you to withdraw the money and then pay a fee later on. If you decide against opting in for overdraft protection, your transaction will be denied.

While overdraft protection can be useful in some cases, a recent study by the Pew Charitable Trusts found that 54% of the customers who had overdrawn their accounts did not realize they had signed up for a service that cost money. Do you fall into this category?

Be sure to check with your bank about overdraft penalties and if you are signed up for overdraft protection. Do you think overdraft protection is worth paying the hefty fee? Let us know in the comments below!

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Before making an expensive purchase, I spend a lot of time researching my options. Whether the purchase is a new TV or a set of golf clubs, it’s important to see what different brands offer and how customers have reviewed said product.

The same research method should be applied when purchasing a car. There are many factors to consider, such as buying new or used. Buying new may cost more up front, although you won’t have to worry about car repairs for an extended period of time.

With that in mind, buying a used car is also an option. While you could save some cash up front, is it really worth it for all the repairs you would have to pay for in the not-so-distant future? Say you buy a three-year-old car that has 50,000 miles on it. Depending on how well the previous owner took care of the car, you may need to get a new battery, along with new tires.

Buying a car seems like a nightmare. With so many things to consider, you’ll want to take a look at the checklist below of things to think about before you buy a car.

Budget

Do you have money to use for a down payment on a new car? Can you afford the monthly car payments of a new car? Your budget will determine the type of car you can afford. If you need to take out a loan, you’ll also want to shop around to find the best rate. If you’re willing to sell your old car, you can trade it in or sell it for money to put toward a new car. In most cases, you’re better off selling it on your own than through a dealership.

Buy New, Used or Lease?

If you want to modify your car, buying is the way to go. With a car you own, you can make any changes you want and not have to worry about getting penalized. If you don’t have enough money to pay off the high monthly fees of a new car, a used car may be right for you. While you may end up spending more on repairs, you’ll spend less up front. If you like getting a new car every two or three years, a lease might be right for you. Your monthly payments will also be less, although you have to be careful about the miles you put on your car, as there are penalties for going over the agreed upon amount.

Car Insurance

If you decide on a leased car, you have to get full-coverage insurance. If you purchase a new car, you wouldn’t want to get anything but full-coverage. However, if you go with a cheap, used car and are willing to risk it, you could opt to go with PLPD, which would save you a lot of money.

Extra Fees

After picking out a car, you’ll have extra costs to consider besides insurance. Be sure to take into consideration the sales tax and registry fees. These can add onto the total cost substantially. For an estimate of fees, check out Edmunds’ Monthly Loan Payment Calculator.

Vehicle History

If you’re buying a used car, it’s important to find out the history of the car. How many people have owned the car and has it ever been involved in any major accidents are good questions to start with. To get the full history report, check out CARFAX.

As you can see, there’s a lot to consider when purchasing a car. Does anyone have any other tips? Let us know in the comments below!

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We’re officially into April. By now, hopefully, the cold temperatures and snow are behind us. One of my favorite sports – baseball – is already underway, which brings me to another favorite sport of mine: golf. Depending on where you live, golf season may be year round. However, if you live in a northern state (like I do), golf season doesn’t start until April at the earliest.

If you enjoy golfing as much as me, your clubs have been ready to hit the links for quite some time now. A new golf season brings along many new questions. “Will I shoot my career low this year?” or “Am I going to get my first ace?” are just a few. Perhaps before you think about what you’re going to achieve on the course, another question comes up. “Is it time to buy new clubs?”

I ask myself this question every year. No matter how new my clubs are, I go through a phase at the beginning of every new golf season where I talk myself into buying new clubs. This year is no different. I bought all new clubs last season, yet I’m about 95 percent sure I’m going to buy new irons this year. Maybe if I had better irons I’d have a better chance to shoot my career low and get my first ace, right?

While it’s nice to put new clubs in the bag, you can’t do so without shelling out some cash. This is where you have a decision to make. Do you need to play the newest clubs on the market (which also happen to be the most expensive) or are you OK with buying a set of clubs that came out last season that you can find for half the price in some instances? Keep in mind, purchasing a set of clubs that came out last season doesn’t have to mean you’re buying a used set. In this week’s version of Save vs. Splurge, golf clubs are the topic.

Golf clubs are expensive. If you choose to buy the newest-model clubs, you can expect to pay top dollar. For a set of irons, that can mean anywhere from $700 – $1,500. For a driver, your starting price is typically $299. Let’s take a look at the price of this year’s newest clubs.

• TaylorMade RocketBladez Irons – $899.99
• PING 2013 Anser Forged Irons – $1,499.99
• Callaway X Hot Pro Irons – $799.95
• Cobra AMP Cell Driver – $299.00
• NIKE VR S Convert Tour Driver – $399.95
• Mizuno JPX-825 Driver – $299.99

Now let’s take a look at what you’ll spend if you decide to purchase clubs that came out within the last two seasons.

• Cobra AMP-D Irons – $399.00
• TaylorMade Burner 2.0 HP Irons – $349.98
• Callaway RAZR X Irons – $399.95
• Adams Speedline Tech Driver – $149.99
• Cobra AMP Driver – $149.99
• NIKE VR S Driver – $179.98

As you can see, you’ll spend hundreds of dollars more if you decide to buy brand new clubs as opposed to buying clubs that were released in previous years. For example, the Cobra AMP Driver that you can now purchase for $149.99 cost me $299.99 less than a year ago. Even the TaylorMade Burner 2.0 HP Irons that I bought for $449.99 last year have come down in price.

The point I’m making is that if you wait a year, the clubs you’re looking at will come down in price the majority of the time. Golf clubs are like iPhones. You think you’re upgrading your phone to the newest technology only to find out six months later that a better iPhone is getting released. In return, the cost of the phone that you just paid a minimum of $199.99 for will fall to $149.99, then $99.99 before eventually being offered for free with a new two-year agreement.

What do you think? Is it worth it to save $300-$600 for a set of irons and $100 or more for a driver by purchasing an older model? Let us know in the comments below!

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Ever since I was a kid, I remember my mom using an outdoor clothesline to dry our laundry. Honestly, I didn’t think it was weird at all until some new neighbors moved in next door when I was about 8-years-old.

I remember watching my mom hang out the laundry one sunny summer day, and out of nowhere the new lady next door said to my mom, “You know there are driers for a reason.” Anytime after that, she glared at us if she saw our laundry hanging up outside.

However, a lot of people share the sentiment that hanging laundry outside looks trashy or low class. Some homeowner association conditions (HOA) prevent residents from hanging laundry for this very reason.

In fact, a few years ago a group of people banded together to remove laws in states like Florida and Hawaii that banned putting up outdoor clotheslines or “solar drying” devices. That’s right, some states actually have laws on the books protecting your right to hang out your laundry.

It all seems silly to me because outside the U.S. it’s more common for people to air-dry their laundry. To this day, the Hill Hoist, a type of rotary clothesline, is an iconic part of Australian culture.

Hanging out your laundry offers a ton of great benefits and it’s pretty simple to set up a clothesline at your home.

Setting Up a Clothesline at Home

All you need are two, sturdy upright posts and a rope. I used a rope I picked up for $2 at the local hardware store and two trees in my backyard to make my line.

Of course you can buy a clothesline system at most department stores. However, to me, it seems like a bit of overkill when a simple and more affordable rope can do the same job.

After you get your line set up, pick up a bag of clothespins and a few extra hangers. Then you’re good to go!

How to Hang Up Your Laundry

To make sure your clothes dry properly, here are a few things to consider when hanging your clothes:

• Wipe down the lines before you hang clothes on them.
• I generally use a thick, wooden clothes hanger for my nicer shirts so they don’t stretch out.
• Hang jeans from the bottom of the legs and flip the pockets out so they’ll dry faster.
• Pair socks together when you hang them up so you don’t have to hunt for matches later.
• Hang color clothes in the shade to prevent fading.
• Hang white clothes in the sun so they’ll dry faster.

Benefits of Using a Clothesline

Many people don’t like drying clothes outside because they say it takes too long or it’s too much work. Fair enough, but have you considered how much you can save by hanging your clothes outside?

Head on over to the Saving Electricity website to check out approximately how much gas or electricity your dryer uses and how much it costs you per year. Sunshine and heat are totally free, so why not take advantage of them to dry your clothes?

Clothes dryers wreak havoc on clothing as well ­ – meaning you have to spend more money replacing pieces later. You know all that junk that ends up in the lint trap? Those are tiny pieces of your clothing getting worn off in the dryer. This weakens and wears your clothing much faster than normal. Also the intense heat can cause clothing to shrink.

Okay, I know a few of you out there are like, “Well, you can’t dry clothes outside when it’s cold and snowy.” Actually you can, and a lot of people do. Ecobaby Steps explains in detail how to do it. You could also set up a clothesline indoors during the winter.

Using an outdoor clothesline in the summer saves you money in several different ways. Plus it’s another small step toward reducing your energy consumption and making the planet a healthier place.

What do you think about hanging your laundry outside? Tell us in the comments below!

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I usually despise Mondays. After a weekend full of relaxing and sleeping in, Monday mornings mean I have to wake up and get ready for work. If you know anything about me, you know how much of a struggle this is because of how much I cherish my sleep. While Monday is usually my least favorite day of the week, this upcoming Monday is one that I’ve had circled on my calendar for quite some time.

What’s so special about Monday, April 5, 2013? Baseball season is back! The season officially kicks off Sunday night with a matchup between the Texas Rangers and the Houston Astros, although the majority of teams begin play Monday. While the weather isn’t very baseball-like in many parts of the country, I’m excited to get back to Comerica Park.

To me, nothing compares to spending a Friday or Saturday night at the ballpark. However, that enjoyment comes with a cost. Much like taking a family of four to the movies or out to dinner can get expensive, a baseball game is no different. Let’s take a look at the costs associated with taking a family of four to a baseball game compared to watching the game from home.

Costs Associated with Taking a Family of Four to a Game

Tickets

Compared to other sporting events, tickets for baseball games come in relatively cheap if you aren’t picky about where you sit. I always buy my tickets off Stubhub. While the seats may be in the upper deck, you can usually get them for $20 apiece or less.

Total price: $80

Parking

This one is pretty simple. The closer to the stadium you park, the more you’re going to pay. If you don’t mind walking a few blocks, you can find parking for $5. However, if you want to park next door to the stadium, you have to be willing to fork out $30 or more. For the sake of coming up with a total price at the end, I’ll say parking is $20.

Total price: $20

Food

I compare eating at a baseball game to eating at a movie theater. Even if you have dinner before, once you get inside the park, someone is going to want something. The concession stands just smell too good. Whether it’s hot dogs, popcorn or roasted almonds, you can plan on spending some money at the concession stands. Tack on a couple beers and pop and you could easily find yourself spending $40 or more just on one trip to the concession stand. Remember, games last about 2.5 hours, so you’ll be lucky to get out of the stadium with only one trip to the concession stands.

Total price: $40

Merchandise

Even if you don’t want a new hat or t-shirt, there’s a good chance one of your kids will. You wouldn’t possibly turn down the opportunity to put a smile on your kid’s face (and risk them throwing a temper tantrum) would you? You could easily spend $25 on a hat, $20 on a t-shirt and $15 on a poster.

Total price: $60

Gas

This obviously all depends on how far away you live from the stadium. If it’s a 15 minute drive, your cost isn’t much more than a few bucks. However, if you’re an hour and a half away, the cost will be much more. This one varies too much to come up with a total price so just be sure to keep it in mind.

Now, let’s take a look at the cost of watching a game from home. For starters, remember that you won’t have to spend money on tickets, parking or gas.

Costs Associated with Watching the Game from Home

Food

This is simple. Order a couple pizzas and call it good. Chances are you’ve got everything else you want already at your house. Even if you have it delivered, your total cost is considerably less than it would be at the ballpark.

Total price: $25

Cable

There are many different options when it comes to cable. If you get a package that includes movie channels and extra sports channels, you’re going to pay top dollar. On the other hand, you can get a package that includes fewer channels for as low as $70 a month. If you already have cable, then obviously this cost is something you’re already accounting for. However, if you don’t, you’ll need to consider if it’s worth spending an extra $70 (or more) per month.

Total price: $70

Merchandise

You can generally get merchandise cheaper if you go to the local sporting goods store. So, even if your kids want a shirt or a hat, you can probably get them what they want for a lot less.

Total price: $35

After adding everything up, watching the game from home is cheaper by a wide margin. To take a family of four to a baseball game, you’re looking at spending $200, plus however much gas you use. If you stay home and watch the game, you’re looking at spending $130 tops.

Keep in mind, the experience is nowhere near the same. As a baseball fan, I’d much rather spend the money and attend a game in person than watch it on TV. I, however, don’t have a family of four to pay for. So, what do you think? Is it worth the cost to take a family of four to a baseball game or would you rather watch from home? Let us know in the comments section below!

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So you’ve been reading these “Know Your Mortgage” posts for a while now (humor me, internet) and you feel pretty confident with your discoveries so far. The mortgage process once was a labyrinth of information, but with the help of these blogs you’ve made the right turns to get out alive (bear with me). However, just when you think you’ve got a firm grasp on a situation the proverbial Minotaur in the labyrinth appears to turn everything on its head. What turned my head askew was the concept of a reverse mortgage. After I’ve learned so much about different types of home loans, you’re telling me they can go backwards now? Just unfair if you ask me, but reverse mortgages are very helpful for those who qualify. So let us venture onward into the world of reverse mortgages.

Alright, What Exactly Do You Mean by “Reverse Mortgage” ?

Well think of how a traditional mortgage works, fixed-rate or adjustable rate, and imagine the process backwards.

So…I Get Paid Money to Not Live In a House?

No, no, no. Okay, that was a bad set up. A reverse mortgage is also known as Home Equity Conversion Mortgage, or HECM, and it has a few requirements in order to qualify. It’s meant for older homeowners who may have troubles paying off a mortgage pre or post retirement. If an applicant is approved for a reverse mortgage, then their remaining payments on the house (if any) are wiped clean by their current equity. The only requirements for this are that the applicant(s) must be 62 or older, have the house their filing on be their primary residence, and they must have enough equity in the house to qualify.

Wait, What’s Equity?

It’s the “E” part of HECM, and it’s the difference between the current value of your home and how much you still owe for the property. You can raise the equity on your home by making home improvements, seeing if your house has risen in value over time, or just paying on your mortgage. If approved for a reverse mortgage, the applicant can get their equity back.

How So?

Well, we’re not there just yet. If you’re interested in a reverse mortgage and you qualify, you must get counseling about it from a government-approved agent beforehand. This is just for him or her to explain how the whole reverse mortgage program works, your responsibilities with it, and an estimate of your loan advances.

Also, there are costs that are paid to get the reverse mortgage set up; a mortgage insurance premium, origination fee, title insurance, a real estate appraisal and more. I can’t give an accurate cost for individual things or a total because I wouldn’t want to mislead, not to mention the prices will vary based on the home and where you live. Regardless, after that’s handled, you can get the money in one of four ways: a monthly payment, one lump sum, a line of credit, or any mix of the three mentioned.

So, You Just Have Like Unlimited Money After That?

No! It’s all coming from the previous equity you’ve built for you property. Remember, you stop paying on the mortgage once you start a reverse mortgage, so amount you owe will still continue to rise on the property. As a result, this will make your equity (possibly) shrink over time. Don’t be swayed though, there are a ton of benefits to a reverse mortgage. As mentioned before there are no more monthly mortgage payments, the house is still yours, and yours to give to your children or whomever in a will. You don’t even have to hit a required credit score or have a certain income bracket, and it’s insured by the federal government too.

When Does the Reverse Mortgage Get…Reverse Paid Off?

Beautifully put. When the loan is “done” (which can mean the house is sold, the owner moves or passes away amongst other things) the amount owed is whatever is cheaper between the home’s value or the current mortgage. From there the amount owed can be re-financed to keep the home, turned over to the lender, or sell the home and cash out the equity.

Sounds Fair Enough. Can I Apply for One Today?

Are you 62 or older?

I Don’t Know. You’re Writing These Questions.

Fair point; lets wrap this up before we get too meta.  As said before, a reverse mortgage can help those who are older, have most or all of their house paid, and need money for other things. As always, post additional questions below if you have more burning questions about reverse mortgages.

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Whether it’s at a fast food joint or a nice restaurant, eating out is expensive enough for one person. For a family of four, the cost soars to…well…four times the amount. Do you have any idea what this can do to your monthly budget?

Last week, I compared the cost of taking a family of four to the movie theater and the cost of watching a movie from home. As you can guess, it’s much cheaper to stay at home as opposed to going out. When it comes to eating out vs. cooking from home, what do you think is better for your wallet?

Let’s start by looking at the cost of eating out for a family of four. To take a family of four to a fast food restaurant such as McDonalds, you’re looking at a total bill of $20. Not bad, right? Well, say you eat fast food three times a week; your total comes out to $60 a week and $240 a month spent on only fast food. Keep in mind, this only accounts for one meal at a time. For instance, if you eat fast food for breakfast, you still have lunch and dinner you need to pay for.

The cost increases drastically when you move up from fast food to a restaurant such as Applebees. At the very least, your cost for one meal will double, especially when you throw in a tip for the waitress. Depending on if anyone orders drinks or desert, your bill could come out to $60. Say you do this three times per week, your total comes out to $180 for the week and $720 for the month. Again, this only accounts for one meal for the day.

Now let’s mix and match the two. Say you eat fast food for lunch with a cost of $20. For dinner, you go out to eat and spend $60. If you do that three times per week, you’re looking at $240 for the week and $960 for the month. Remember, this only includes two meals per day for three days during the week. There’s still one other meal you need to account for per day plus an additional four days. You see where this is going, right?

In a world where people are always on the go, the whole concept of cooking at home may be foreign to some of us. I know it is for me. Let’s take a look at how much you can save by cooking instead of going out to eat.

Let’s say you start off the day with a bowl of cereal. You can get a box of cereal for around $4 and a gallon of milk for close to the same price. That’s $8 you spent that can last for a few meals depending on serving size as opposed to the $20 you spent on fast food for breakfast.

A few hours later, it’s time for lunch. Instead of going to a restaurant and spending anywhere from $40-$60, you opt to make sandwiches. Whether it’s peanut butter and jelly sandwiches or turkey and swiss, your costs are decreased substantially. A loaf of bread doesn’t cost any more than $3. Both peanut butter and jelly are sold for less than $10 combined. Throw in a bag of chips for close to $4 and a 2-liter of pop for no more than $2 and you’ve got a complete lunch for a family of four for less than $20.

Now it’s dinner time. Instead of spending another $40-$60 at a restaurant, you can cut your cost in half by making spaghetti from home. Don’t worry, I’m not talking about making anything from scratch. You can get a box of noodles for $3, a couple cans of spaghetti sauce for less than $10 and a loaf of garlic bread for $4. Throw in four glasses of water and your total cost is $17.

Do you see how much money you can potentially save? Going out to eat is nice because it takes away all the work of having to cook and clean up. However, it comes with a very expensive price tag over time.

You be the judge. Is the extra cost of eating at a restaurant worth it? Let us know in the comments below!

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