Grabbing a quick bite during your lunch break may seem like a harmless daily expense, but small amounts can add up significantly over time.

Whether it’s a supermarket meal deal, a quick trip to the nearest fast-food place, or even a seemingly modest restaurant lunch, spending a few pounds a day can add up, potentially leaving you out of pocket by more than you think.

If you were to change the way you approach this daily habit and make your lunches instead, you could save a substantial amount of money each year. You could then look towards building a more secure financial future by investing that money for the future.

Let’s explore the real-world cost savings of packing your lunch versus buying it, showing how even small changes could lead to substantial long-term investing potential.

Buying lunch every day could cost you £1,310 each year

The difference between buying and making lunch may seem small on a daily basis, but the cumulative effect can be significant over the course of weeks, months, and even years.

According to NimbleFins, the average UK household spends £1,278 annually on takeaways, restaurants, cafes, and snacks. While this figure encompasses more than just lunches, it shows that there is a substantial annual spend on “out-of-home” meals.

This figure may be even higher for a person working five days a week in the office, particularly if they are buying their lunch every day. In this instance, let’s assume that they’re buying a meal deal four days of the week, with a fast-food option on Fridays as a treat. They may even grab lunch with a coworker twice a month at a local pub or restaurant.

For costs, NimbleFins states that one person’s average weekly spend on restaurants and takeaways was about £11, as of January 2025. Startups notes that the average cost of a meal deal is £3.79, though its figures are relevant as of August 2024, so costs may have increased slightly.

Based on this scenario, and working with a four-week time frame, here’s what you could spend:

  • 14 meal deals a month would cost £53.06
  • 4 fast-food meals at £11 each would cost £44
  • 2 restaurant lunches would cost £22

This totals £119.06 every four-week cycle. When projected over a year, excluding four weeks for annual leave, you could potentially spend about £1,429. Even without the fast food and restaurant lunches, the cost of meal deals alone would be around £637.

Making your own lunch could save you £1,002 annually

In contrast, making your own lunch could significantly reduce these expenses. A simple homemade sandwich with crisps and a drink would cost considerably less. Here’s a breakdown of the potential costs.

Source: Sainsburys

Using the above calculations, the average homemade lunch consisting of a ham and cheese sandwich, a packet of crisps, and a can of Coke Zero would cost approximately £1.78. This is significantly less than the average meal deal cost of £3.79.

Over a year, making your own lunch each day could cost about £427. That’s assuming you made the same thing each day, didn’t take leftovers to work, and worked in the office five days a week.

If you considered the difference between £1,429 and £427, you’d be left with £1,002. That’s about £85 a month, from January to December.

Investing your lunch money could help you secure a stronger financial future

Investing £85 each month may not seem like a lot, but even small contributions can make a difference over time. Consider the below as an example of what investing £85 each month could look like, assuming you took on a medium level of risk.

Source: HSBC

Note that the value of your investment would depend on your individual habits, market conditions, and risk tolerance. This means there could be a range of potential returns and varied performance.

The savings gained from packing your lunch could translate into significant long-term financial benefits, particularly as the power of compounding comes into play. This is where you earn returns on your returns, potentially generating greater growth over time.

Get in touch

The potential savings from packing your lunch are clear, and the long-term benefits can be substantial.

However, deciding what to do with your spare money may be a bit more complicated. This is where we can help.

If you have found some room in your budget for saving and investing and aren’t sure what to do with the extra money, talk to us today.

Please speak to your usual Dodd Wealthcare contact. Alternatively, email info@doddwealthcare.co.uk or call 01228 530913 / 01768 864466.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

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