How to Save a Mortgage Payment

We crunched some numbers and figured out, quasi-scientifically, what it costs to buy lunch every day, and how much a hypothetical office-labourer might save by taking 10 minutes each morning to brown-bag it.

I won’t bore you with a detailed breakdown of mathematical wizardry — the spreadsheet below, based on a 241-day work year, summarizes it. (241 days being what’s left once we subtract weekends, two weeks’ vacation, and statutory holidays from 365.) Let’s have a look:

Morning coffee, Tim Horton’s Bologna and cheese sandwich plus small side salad Afternoon coffee, Tim Horton’s Snack Total
Cost per day $1.50 $8 $1.50 $2 $13
Cost per month $33 $176 $33 $44 $286
Cost per year $361.50 $1,928 $361.50 $482 $3,133

Adjust for your own preferences, but the prices above are based on a typical day’s purchases.

Now let’s look at the cost to brown-bag the same food:

Coffee beans, unground Whole wheat bread Meat, veggies, sandwich stuffing Cookies/fruit Total
Cost per day $0.47 $0.37 $4.76 $0.80 $6.41
Cost per month $9.95 $7.85 $100.00 $16.80 $134.60
Cost per year $119.40 $90.07 $1,147.62 $192.80 $1,549.89

Doing the math for your own lunch gets a little more complicated. Let’s say a big cup of coffee weighs in at 10 grams of ground beans. You’ve got 454 grams in a pound of coffee, so there’s a cup a day for 45 days. Divide in half and you have a little more than two cups a day for the working month. Perfect.

A 16-slice load of bread makes eight sandwiches. Veggies, meat, and cheese add up to maybe $100 a month. (Of course no one wants to eat a sandwich every single day, but we’re just going for a ballpark number here — feel free to substitute your own culinary preferences.) A bag of 20 gourmet cookies costs $4.99. Throw in two cookies plus an apple, and you’re snacking for 80 cents a day.

Add it all up and you’re saving $1,583.11 a year.

Other things you can buy with almost $1,600: a high-end 46” LCD TV. Three iPads. Over 1/3 of the average annual undergraduate tuition. A well above-average mortgage payment.

Few of us eat out every day of course, and there are countless variables. You can make an expensive meal at home or find a dirt-cheap one out. Food is pricier in some regions than in others and, let’s be honest, we’re not taking into account food spoilage (we all have some inedibly wilted lettuce and brown tomatoes in the fridge).

Regardless, this little number-crunching exercise should confirm what we already know intuitively — eating out equals wasted money. The surprise is how much.

Credit: Matthew Halliday

Published in: on June 2, 2010 at 5:35 pm  Leave a Comment  

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