Free Money Finance

Thoughts on Restaurant Bills

Money Magazine recently had a series of stats on restaurant bills.

Here are a few of the facts that caught my attention and my take on them:

Average monthly restaurant tab per household: $223

We are a bit lower than this ($200 a month) but we've really got it more under control the past few months -- more like 4125 per month.

It's an area we're focusing on and trying to get around $100 a month.

The average household spends 20% of disposable income on eating out.

We are nowhere close to this. For us it's one of our lower-level spending categories.

Rewards cards that offer the most cash back for eating out (then they list several with the highest being 2.5% cash back).

There's a new sheriff in town. The Costco credit card offers 3% cash back on restaurants.

In addition, the Chase freedom card offers 5% now and then as part of its rotating category list.

Menu items with supersize price markups: Soda (800%), pizza (800%), French fries (977%), and chicken noodle soup (1,650%).

I either don't eat/drink most of these (soda, French fries) or don't eat them out (soup). I have to admit, pizza is my weakness. :)

How about you? How do you fare compared to these stats?

Americans Have Way Too Much Credit Card Debt

I like to "collect" posts on various topics. Here are a few:

Posts about people who have a solid net worth despite having a low income. I like these posts because they show that you don't have to make a gazillion dollars to become wealthy. You simply need to spend less than you earn and invest that difference. Over time, your wealth will grow.

Some posts in this category include:

• Looks Like the Income Needed to Become Wealthy is Far Lower than Most People Think
• An Example of How to Get Rich on an Average Salary
• Another Example of Getting Rich on a Low Salary

Posts about how people with huge incomes go broke. These posts illustrate that no matter how much you make, you can spend it all and then some and go backwards financially. So while a high income is important, it does not guarantee financial success if you can't control your spending.

Some posts in this category include:

• More Rich People Who Lost it All
• Now $1 Million is Not Enough to Live On
• Seven Costly Pro Athlete Screw-ups
• Stars Who Have Lost Fortunes

Posts about how terrible Americans are at managing their money. These posts keep me writing. People out there simply don't know how to manage their money!!! Hopefully I can help them with that.

Some posts in this category include:

• How Many Americans Live Paycheck-to-Paycheck?
• Finances of the Average American
• Americans Stink at Money Management

Today's post falls in the last category.

Money Magazine's July issue says:

"Families haven't owed this much since the Great Recession. The Federal Reserve has found that high income families who carry a [credit card] balance owe more: $8,300 a year, on average. That's almost $1,500 in yearly debt costs."

Why, oh why, do people carry credit card balances -- especially if they have high incomes?

Credit cards should not cost you money -- they should help you MAKE money!!!

Stats like this do not surprise me any more, but they do make me wonder...

A Year Ago

It's been almost a year since I announced I was starting a new blog. And believe it or not, I'm still getting requests for links to the new site.

So I'm posting here again until no one asks for the site's address.

If you want an email sent to you with my new site listed, simply leave a comment below like "please send me the URL to your new site". Include your email address in the email box when you leave your comment. I will get both the message and the email address, but no one else will be able to see the email address (no one wants their email to be public, right?)

As a reminder why I'm sending emails instead of simply announcing the new site, you can see my reasons here.

BTW, I am posting here on FMF at least once a week for the time being. I'm doing shorter posts here (mostly commentary on interesting pieces I find around the web -- what this blog is known for) and longer posts on the new site. I hope you enjoy both!

Some Posts Worth Checking Out

Here are a few posts that I liked but won't get around to posting on. Thought you might enjoy them:

• Mighty Bargain Hunter says there are three letters that will millionaire you. They are E-S-I. He then points to the blog ESI Money.
• The NY Times says adding a teen driver to your car insurance will drive premiums up 79%. Yikes! I'm about to add two!!!
• HuffPo details a woman who turned her dream life into a reality. 
• The White Coat Investor gives eight reasons you should be your own advisor. 

Well, that's it for this week! Hope you all are having a wonderful summer!

How's Your State Rank for Retirement?

Here's an interesting report which ranks the top states for retirement based on the following criteria:

• Financial: The financial health of pre-retirees as a group, and the fiscal health of their states of residence, are directly linked to their ability to enjoy a fulfilling retirement. Financial factors rank high across all surveys of pre-retiree preparedness.
• Healthcare: Access to, and cost of, healthcare are key determinants of retirement satisfaction. Along with financial factors, healthcare comprises a top concern.
• Housing: Affordable housing, both while active, during retirement, and, if needed, for nursing care, is of vital importance and can be a major expense.
• Community Quality of Life: Social factors, including weather, are key determinants of retiree happiness and satisfaction.
• Employment and Education: The 20 years before retirement can generate the highest rate of savings if fully employed. Employment may offer benefits beyond income, such as 401Ks, pensions, health insurance, and health savings accounts.
• Wellness: Personal habits and tendencies impact health during the last years of employment and into retirement. Poor habits are associated with premature death, poor quality of life, and increased healthcare costs, in addition to strains on stateprovided resources.

The states are then divided into quintiles rated "A" through "F" with "A" being best.

Here's how all the states I've ever lived in rate:

• Iowa - B
• Missouri - B
• Tennessee - B
• Colorado - C
• Indiana - C
• Illinois - C
• Michigan - C
• Ohio - C
• Pennsylvania - C
• Oklahoma - D

The states that rated "A" are:

• Virginia
• South Dakota
• Minnesota
• Wyoming
• Wisconsin

The states that rated "F" are:

• Arkansas
• California
• New Mexico
• New Jersey
• New York

Some thoughts:

• I think it depends where you live in each state. Believe me, the small town I lived in in Iowa is not even close to a "B".
• Of my states, I would rate Missouri lower and Colorado and Michigan higher.
• Of the A-rated states, Virginia is the only one I'd like to live in. LOVE that state -- so beautiful.
• Having "New" in your name must be a killer. :)
• Personally, I'm in love with Colorado and plan on living here the rest of my life.

How about you? How did your state rank?