“A generation ago, three-quarters of the money used to buy food in the United States was spent to prepare meals at home. Today about half of the money used to buy food is spent at restaurants–mainly at fast food restaurants.” – Eric Schlosser

If you focus on the bottom-line of your household budget, you will notice three expenditures that are usually the highest – housing, transportation, food – and it is getting more expensive every year.

One of the biggest things I have learned from reading about personal finance is that your expenses can make or break your budget. If you can keep the costs of food, shelter, and cars low, then you have a shot at financial independence. It’s yours for the taking. All you have to do is spend less.

I learned about zero sum budgets from my readings. The person who really sparked my interest to act and create a zero sum budget was actually finance writer Phil Town.

However, the person who inspired me to save like nobody’s business was finance blogger Grant Sabatier.

Thanks to Grant, I started increasing my savings rate every year.

In reading about finance, many books and blogs teach you that focusing on the top three biggest expenses and keeping those costs low are very important.

In fact, there are bloggers that have become millionaires by not purchasing too much home or not buying a home at all. They put that money into investments instead.

Same rules apply with cars.

That is what I did with my transportation cost. I cut it to the bare minimum. And paid off my car. Once I got that sucker paid off, I put that money to work. I invested every penny in the stock market. I turned a $450 car payment into$100,000!

See my post on my 401k. How I went from $5k to a six-figure 401(k) in 6 years 

One of the last big ticket items in the budget is food.

Growing up my mom always cooked sensible dinners. However,as I became a teenager, I started to become a junk-food junkie. I gained weight and had horrible skin. And spent tons of money on fast food.

Well, as an adult, I grew out of that. I started eating more at home or at least making healthier choices. That meant more salads, raw veggies, fruits, and less meat. Eating leafy greens. And drinking plenty of water.

As long as you’re green, you’re growing. As soon as you’re ripe, you start to rot. – Ray Kroc, founder of franchising of McDonald’s

After a while and as a result, I saved a ton of money, lost weight, and my skin cleared up.

So, let’s talk about food that is fast.

WHAT IS FAST FOOD NATION?

Fast food is popular because it’s convenient, it’s cheap, and it tastes good. But the real cost of eating fast food never appears on the menu. – Eric Schlosser

Fast Food Nation is a book written by Eric Schlosser in 2001. He discusses the fast food industry in an in depth and thorough, well-written book. This book had a profound effect on me. It is probably one of the most scholarly pieces of literature to ever have that type of influence on me.

Let’s talk about food being fast.

WHY EAT SO FAST?

I can understand why a single parent, working two jobs, would find it easier to stop at McDonald’s with the kids rather than cook something from scratch at home. – Eric Schlosser

Today, fast food is part of the American lifestyle. It started after World War II. Frozen food technology emerged at that time around the 1940’s and 1950’s. It was cheaper to buy frozen than fresh. For instance,French fries then became mainstays of restaurants.

However, I did some of my own research. Found that fried foods, especially French fries, are loaded with saturated fat; a type of fat containing a high proportion of fatty acid molecules without double bonds,considered to be less healthy in the diet than unsaturated fat. All that sugar and salt, like shopping and credit card spending cause it’s all about that plastic, is addictive.

See my post on how I curbed my own shopping addiction.

 How Millennial Money inspired me to start saving $13,333.06 a year. 

Want to know more about credit cards and plastic? Read Credit Card Nation and Maxed Out

I also noticed that everywhere I went there was soda, French fries, cheeseburgers, and pizza on the menu. Why is this being marketed so hard at consumers? I am being pumped for my dollars to buy fried foods. Therefore,I figured it must be some sort of control mechanism and I decided to cut out or radically reduce all of these items from my diet. I like to have control overall facets of my life and that includes what I spend my money on and what I eat.

I also learned to slow down when I eat. According to dietician and nutritionist Cara Stewart, it takes the brain 20 minutes to know you are full, as she stated, “your brain and stomach register feelings of fullness after about 20 minutes.” You should also chew your food well to limit problems with digestion.

Want to know more about French fries?

Read up on the man referenced by Eric Schlosser named J. R. Simplot. He built a multi-billion-dollar potato business and provided those potatoes to none other than McDonald’s.  He was said to be worth an estimated $3.6 billion.

FOOD OF YESTERYEAR AND TODAY

“Twenty years ago,teenage boys in the United States drank twice as much milk as soda; now they drink twice as much soda as milk.” – Eric Schlosser

My mother said my grandmother would cook food from scratch. Sweet.

You see, my mother grew up on a farm. Her father grew fresh fruit. They could literally go out to their backyard and get fresh food.

Today, most families shop at the supermarket.

Lots of families also dine out. Especially, after households started having two-parents work. And for quick meals, they eat out.

You want to know more about this two-parent income trap?Then check out my post and Elizabeth Warren’s book The two-income trap.

I did some more research. Found out that the top drink in the 1950’s was milk. Today, it’s soda. Coincidence? I’ll leave you with this to chew on, there is no such thing as coincidence. It’s just about being in the right place at the right time.

The two most important requirements for major success are: first, being in the right place at the right time, and second, doing something about it. – Ray Kroc

Who is Ray Kroc?

It’s easy to have principles when you’re rich. The important thing is to have principles when you’re poor. – Ray Kroc

Ray Kroc is the founder of the McDonald’s franchise business. He became a millionaire in his 60’s. Ray was estimated to be worth$500 million to $1 billion dollars.

He was a stickler for cleanliness. It was said he would get on his hands and knees to clean floors and corners with a toothbrush. He believed in running a clean business. Ray also believed in thriftiness and fiscal responsibility. And set high standards.

The quality of a leader is reflected in the standards they set for themselves. – Ray Kroc

He never went to college. Ray didn’t think MBA’s or college was the only or most important ingredient in success as he preferred those with grit, determination, and persistence.

While formal schooling is an important advantage, it is not a guarantee of success nor is its absence a fatal handicap.  – Ray Kroc

 He joined the military during World War I. While there, he met a young man named Walt Disney.Later in life, the two would work together.

“The life’s work of Walt Disney and Ray Kroc had come full-circle, uniting in perfect synergy.McDonald’s began to sell its hamburgers and french fries at Disney’s themeparks. The ethos of McDonaldland and of Disneyland, never far apart, have finally become one. Now you can buy a Happy Meal at the Happiest Place on Earth.” – Eric Schlosser

Want to know more about Ray Kroc? Check out the book Grinding It Out: The Making of McDonald’s by Ray Kroc or check out the movie The Founder

DOWN ON THE FARM

“The United States now has more prison inmates than full-time farmers.” – Eric Schlosser

I tell people all the time we are not on the farm anymore. People are not making anything in America anymore. No one is churning their own butter or making their own clothes.

Farms, like the one on Smallville starring Tom Welling, are a thing of the past.

You now have to work another way for your meal.

What has happened to the strapping young men? Where have some of the people gone?

Because these days,the system would rather incarcerate a boy than redeem him. – Supernatural S09S07Bad Boys.

What happened to farmers?

Jimmy Dean may still be down on the farm, but many others have lost the family farm due to hard economic times.

The price of milk,eggs, and bread can only go so high. Many people now go to Amish markets,organic stores, or specialty markets like Whole Foods and Trader Joes.

That organic carton of milk can cost $8 or $6 for eggs. The farm was cheaper. You just had to own and work the land, which includes taking care of the animals.

HOW MUCH ARE WE SPENDING ON FAST FOOD

“In 1970, Americans spent about $6 billion on fast food; in 2000, they spent more than $110 billion. Americans now spend more money on fast food than on higher education, personal computers, computer software, or new cars. They spend more on fast food than on movies, books, magazines,newspapers, videos, and recorded music—combined.” – Eric Schlosser

If you check your bank statements, you will see a large portion of your money is spent on food. The majority of that is usually on meat.

Many financial advisors will tell people they should only spend around $50 per week per person.

For a family of four, that is $200 per week.

The only way to make that number work is by cooking more at home.  

HOW YOU CAN SAVE

It’s possible to go to the market, buy good ingredients, and make yourself a healthy meal for less than it costs to buy a value meal at McDonald’s. – Eric Schlosser

It’s a four letter word that rhymes with nook. Cook.

You need to save every dime you can, since pensions are on the chopping block of just about every company from here to Alaska. The money you save cooking at home can be put into your retirement accounts or funneled into a savings account for capital for your business.

WHY YOU SHOULD SAVE

Studies have found that preparing your own food is usually healthier and less expensive than buying fast food. But most people just don’t have the time. – Eric Schlosser

I aimed at the public’s heart, and by accident I hit it in the stomach. –  Eric Schlosser

One particularly poignant moment in the book was when Mr. Schlosser interviews a high school administrator. She said that in 30 years as an educator she noticed how things had changed in schools and that people were poorer now than ever.

It shook me to my core.

At that moment, I made a decision. I. MUST. SAVE.

Sure, you can work on earning more, but you can spend everything you have down to the last dollar without a financial plan and discipline. Yes, work on earning more, but also save.

See out my post on frugality and Benjamin Franklin

I feel that saving is an important part of household or business finance. A business 101, if you will.

Saving can be just as exciting as spending.

Watching that bank balance go up never gets old.

Don’t forget this:
Things you get tired of quick
-$25,000 new car smell

Things you never get tired of
-$25,000 in the bank https://t.co/ydrGQVs078— Miriam Joy (@mjp2520) November 17, 2018

I truly believe you should save to help your family and your community and the world around you. In addition, you should save to fund your dreams. I also like to save to have financial independence.

I will expand upon that last statement and I’ll tell you exactly what I mean.

Greenbacks Magnet is on set up to save more money each year. It could be 1% or 2% more, but more none the less. We have set a savings goal and are on track to save $14,555.06 in 2019. In 2018, we set up and will hit our target savings of $13,333.06. That money can go toward the business, helping others, and doing good work.

I am truly passionate about what I do. And being thrifty help sme continue to do that which I love; write.

If I could put my feelings of how much I enjoy writing into words,it would be like this. In the illustrious words and slogan of McDonald’s, “I’m lovin’ it.”