Ah, takeout—the sweet, convenient siren call of delicious food without the hassle of cooking or cleaning up afterward. It’s a modern marvel, a lazy man’s dream, a foodie’s paradise. But if you’re anything like Timmy, it’s also the financial black hole that’s been eating up your budget and your future wealth.
The Case of Timmy's Takeout Troubles
Let’s talk about Timmy. Timmy is a 28-year-old software developer living in a vibrant city where you can get anything from Thai to Tex-Mex at the tap of a button. He earns a decent salary—about $85,000 a year—so he’s doing pretty well for himself, right?
Wrong.
You see, Timmy has a problem. He loves takeout. Not just “Oh, I’ll order pizza once a week” love, but an “I don’t feel like cooking, so I’ll just order something” kind of obsession. And it’s not just dinner—Timmy orders lunch from the local deli most days too.
Let’s break down his expenses:
- Average takeout dinner: $25 (including tip)
- Average takeout lunch: $15
- Number of takeout dinners per week: 5
- Number of takeout lunches per week: 4
Now, let's do some quick math:
- Weekly dinner spend: 5 dinners x $25 = $125
- Weekly lunch spend: 4 lunches x $15 = $60
- Total weekly takeout spend: $125 + $60 = $185
- Monthly takeout spend: $185 x 4 = $740
Yep, that’s $740 a month just on takeout. That’s $8,880 a year on food that someone else cooked for him, delivered to his doorstep, and marked up by at least 50%.
Timmy never thought twice about it. After all, he could afford it, and it made his life easier. But what Timmy didn’t realize was that this little habit was costing him more than just money.
The Hidden Cost of Convenience
The $8,880 a year might not seem too bad, especially for someone earning $85,000 a year. But let’s consider what Timmy could be doing with that money if he wasn’t spending it on overpriced takeout.
Scenario 1: Timmy Starts Investing
Imagine if Timmy decided to cut back on takeout by half. Instead of spending $740 a month, he decides to spend $370 and invest the other $370 into a low-cost index fund with an average annual return of 7%.
- Monthly savings to invest: $370
- Annual savings: $370 x 12 = $4,440
- Invested over 10 years with a 7% return: $4,440 x [(1 + 0.07)^10 - 1] / 0.07 = $63,293
In just 10 years, Timmy could turn his takeout money into over $63,000! And that’s without any extra effort beyond clicking a different button—invest instead of order. Now imagine if he invested the whole $740…
Scenario 2: Timmy Buys Bitcoin
Alternatively, let’s say Timmy is a bit more adventurous and decides to put his takeout money into Bitcoin. Now, we all know that crypto is volatile, so let’s not pretend it’s a safe bet. But let’s imagine Timmy started this habit 5 years ago when Bitcoin was around $10,000.
- $370 a month into Bitcoin 5 years ago = $22,200 invested
- At today’s value (assuming Bitcoin is $30,000): $22,200 x 3 = $66,600
Sure, it’s a rollercoaster, but that’s a lot of takeout converted into potential financial freedom. The key takeaway here isn’t that Timmy should bet it all on crypto, but rather, he needs to realize how powerful it can be to redirect money from daily indulgences into long-term investments.
Lessons from Timmy's Tale
Small Daily Expenses Add Up: It’s easy to think of $25 on dinner as a small expense. But those “small” expenses are cumulative. In Timmy’s case, they added up to nearly $9,000 a year.
Invest Early, Reap Later: Whether it’s index funds, crypto, or another investment vehicle, starting early and consistently investing is the key to building wealth. Timmy could have turned his takeout money into tens of thousands of dollars without even noticing it was gone.
Convenience Can Be Costly: We all value convenience, but it’s important to understand what it’s really costing you. The time saved by ordering takeout might not be worth the financial future you’re sacrificing.
Balance is Key: You don’t have to eliminate all indulgences to be financially savvy. Timmy didn’t need to quit takeout cold turkey—just cutting back by half could have given him the best of both worlds: enjoying the occasional convenience while still building a solid financial future.
Conclusion: Timmy’s Turnaround
After realizing the true cost of his takeout habit, Timmy decided to make a change. He started cooking more at home, meal-prepping his lunches, and investing the difference. It wasn’t easy at first—old habits die hard—but after a few months, he started to see the results.
His bank account grew, his investment portfolio expanded, and he even found that he enjoyed cooking (and the health benefits that came with it). Timmy still orders takeout occasionally, but now it’s a treat, not a crutch.
And you know what? Timmy’s life is richer—literally and figuratively. He’s no longer eating his future; he’s investing in it.
What about you? Are there daily habits eating away at your financial future? Maybe it’s time to take a page out of Timmy’s book and start investing in yourself instead. Your future self will thank you.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.