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SALT LAKE CITY — People are tired of watching how much they spend and are going out to eat, according to recent reports. However, some financial counselors say there are real pitfalls people can fall into.
NBC News reports an all-time high in consumer spending at restaurants. Consumers spent $45.9 billion at eating and drinking places in April, a $200 million increase from the last record month, December 2012.
"Last month was a shock," Ryan Lowder, chef and owner of the Copper Onion, told NBC News. He said his sales were up 20 percent from April 2012. "The increase last month was killer. I'm not complaining."
When it comes to spending on going out, one NBC News survey found consumers are ready to spend their paychecks and are becoming less frugal than years past. However, the trend worries financial counselors.
Budgeting, especially in terms of going out versus cooking at home, is a lot like a diet, according to American Credit Foundation spokesman Mike Peterson. People who break from the diet find a way to justify it.
"Once you go out and get used to spending at those higher levels, it's really hard to go back," he said.
Related:
3 ways to fight frugal fatigue
When we finally get a budget plan together, we promise ourselves we'll stick with it, no matter what. But something — whether it is a sale, or we wanted to go out to eat, or we simply got tired of not spending money the way we're used to — knocks us off the path.Peterson said people have every intention of spending only a certain amount when they go out to eat, but they don't have a realistic picture of what they're likely to spend.
"At the end of the month, they find out that instead of spending maybe $100 for the month in eating out, they spent $200 or $250," he said. "It really adds up fast."
However, that doesn't mean people need to avoid the occasional splurge.
"It could be eating out at the restaurant," Peterson said. "It could be buying a book or going to a movie."
There are some things Peterson recommends every consumer do before splurging, like making sure they have enough money to cover monthly necessities. Plus, consumers will need to set aside some money for an emergency fund and put money into an retirement account.
"If you're doing that and you have money left over, then I would say take a look at that number and determine how much of that you're willing to just blow on splurges," Peterson said.
