Breakfast Savings

Saving for Breakfast and Earning $10,000

If I told you that you could make $10,000 at breakfast, would you believe me? With a few smart choices, you can do precisely that with just the small savings you get from a frugal breakfast. In addition to saving money, making smart choices also helps you to eat healthy.

Taking control of your personal finance is one way to accumulate wealth very quickly. The savings come through small savings and financial discipline. Today we will look at eating healthy on a budget and more specifically eating breakfast.

This money savings tip comes from simply eating breakfast. The everyday savings easily rolls into the monthly budget.

Breakfast choices can be broken down into 4 categories

    1. Inefficient

    1. Partially Inefficient

    1. Partially Efficient

  1. Efficient

Efficiency?  That seems like a strange way to describe a meal.  This comes from the consistency and nutritional value per unit cost.

The Inefficient Breakfast

An inefficient breakfast consists of a trip to the restaurant.  It does not matter too much whether the restaurant is fast food or sit down. The reason this is labeled inefficient is because the cost of the food is too high and nutritional value is too low.

Breakfast is one of the most profitable meals for restaurants. The cost of the ingredients is incredibly low, and the margins are relatively high. This is a selling point for many franchises. If you look at the city where you live, you are likely to find many restaurants that cater to breakfast or brunch.

We often justify this trip to the restaurant to saving time and effort. The reality is that preparing breakfast takes very little time or effort. Most meals can be made in a matter of minutes with just a little preparation.

The Partially Inefficient Breakfast

A partially inefficient breakfast consists of making some meals at the home at the house but purchasing most of the meals at a restaurant. There are some savings that come with this choice. The daily savings though are relatively modest. This category consists of purchasing breakfast 60% of the time. Also, the cost of the meals is relatively low compared to an inefficient breakfast.

The Partially Efficient Breakfast

Partially efficient breakfast consists of eating most meals at the house but purchasing some at the restaurant. The savings on food is slightly higher in this group. This category consists of making breakfast 60% of the time.  Also, the cost of the meal is typically lower than a partially inefficient breakfast.

The Efficient Breakfast

So now the efficient breakfast, nearly all meals are prepared at home.  The daily savings associated with this meal are very significant.  This comes down to smart choices, some financial discipline and eating healthy on a budget. As mentioned before the cost of ingredients is relatively low.

Additional benefits of eating at home

The efficient breakfast gives you full control have what you eat. By making the breakfast at home you can determine how much fiber, fat content, calories, protein and carbohydrates are in your meal. You can also regulate the amount of sodium and sugars better in your meal.

Just by having breakfast, research suggests that it helps control weight, energy, improves the skin and improves performance throughout the day. While this article is about the financial benefits of eating breakfast at home the nutritional benefits are important as well.

Great Articles and Tips

Running a household provide an excellent breakdown of breakfast costs and unit costs. This was one of the best articles I’ve seen to explain how a meal can produce great savings.

News miner also has a great discussion on homemade breakfast and whether to purchase pre-made packages or combine ingredients.

Self has a few very cheap and easy breakfast that were made at home.

Opinion outpost has a good article on how to make 40 breakfasts for $30

An Iowa State blog post has a great comparison between purchasing an egg and Canadian bacon sandwich or making one at home.

My recipe is a great article and the price of restaurant ingredients and how much we purchase them for the convenience

So, about that $10,000

Nothing says being serious about saving money like charts and graphs. So, let’s go ahead and look at some charts and graphs. Let me first describe some of the assumptions.

The cost of breakfast was broken down into the 4 categories. And efficient breakfast cost anywhere between 84 cents and $1.65. A partially efficient breakfast cost anywhere between $1.18 and $4.08. Hey partially inefficient breakfast cost between $1.36 and $5.30. And inefficient breakfast cost between $1.53 and $6.52. These values just provide a range to run a simulation. The efficient and inefficient ranges were taking from actual samples of menus and unit costs for home cooked meals.

Cost of Breakfast Assumptions
Efficient Partially Efficient Partially Inefficient Inefficient
Lower $0.84 $1.18 $1.36 $1.53
Upper $1.65 $4.08 $5.30 $6.52

Next, for each category I created a table that selected random number anywhere within the range of that category. The table also consists have one day for every day of the year. This provided a quick and easy way to simulate food cost for a given year.

The chart below shows the food cost per month for one year.  Notice the amount of variation in the inefficient category. Also note the amount variation in the efficient category. Notice the months when the difference between the partially inefficient and partially efficient categories are together. This variation is why I have used efficiency to describe the food budget for breakfast.

The data table also provides some keen insight into the chart above. The grand total row clearly shows the difference in the food costs over the course of a year.  This difference in the food costs over the course of a year is where the beginning of the $10,000 comes from.

So now let’s look at the accumulated difference over time. Using the Inefficient category as a baseline there is a 10-year total of $14,800. The efficient category grand total over 10 years is $4500 with the other two being somewhere in the middle.  Using the 10-year simulation the range is also a good indicator of efficiency.

Investing the saving

Because it is unlikely that 100% of the savings would go into investments, I used 75% as the amount that would be saved for investment.  I also used a 5% rate of return. As you can see over the course of 10 years the efficient breakfast provides approximately $10,000.

Viola!  $10,000 has just been made at breakfast

By having some financial discipline and eating healthy on a budget this money saving tip has provided a way to accumulate wealth.  By making smart choices and being frugal the small savings that you accumulate will turn into large accounts.

Now let me know some of the ways that you have made smart choices with the most important meal of the day. I would love to hear about your money saving tips, and ways that you have used financial discipline to accumulate wealth.