I’m afraid to bring this up with friends if they call me “Karen” or tell me I’m selfish or a skinflint. In the last 12 months, I have seen my rent increase by 25%. I am paying $3,200 for a one bedroom apartment. I will never be able to save up for my own place. I struggle to pay off my credit cards every month. I wear clothes and, in some cases, shoes I bought 10 years ago. I am lucky enough to fit into dresses, and I can no longer afford to spend money on “luxury items” or “must haves”. My company is downsizing, and I’m waiting for the other shoe to drop. “‘Not tipping 20% makes you look like some kind of fascist. I tipped 15% once on a date, and I never saw it again.'” I eat out twice a week, usually on the weekend, and have dinner. Plus I’m constantly told how much it costs for a glass of wine or a cocktail. . As much as a starter, if you have to ask. I went to a popular pizza joint in my neighborhood last weekend, and we had two pizzas, a shared starter, a Had a gin and tonic, a negroni, and a glass of wine, and it cost us $208. That’s $104. Plus, another $20 each for the tip. We started going out for pizza. How is this possible? My friend ordered her pizza. But didn’t eat and I told him, “You just spent $124 on cocktails and a glass of wine.” Given the cost of living, I’m stuck with the 20% rule. I live in a big city. You can pay $7 for a coffee. . a coffee! Not tipping 20% makes you look like some kind of fascist. I tipped 15% once on a date, and the guy made a smartass comment, “Oh, you’re only tipping 15%?” And I never did that again. not seen Cabs now cost $30 for a three-mile ride. Is it ever okay to tip less than 20%? Soon we will be tipping 25% or 30% or more. I’m sorry to offend, but I’m sick and tired of being guilty of tipping everywhere I go. am i right Or am I a cheapskate? Please enlighten me. Over tippingDear Over Tipping, Even if you wrote this in anger, you’re right about a lot: rents are rising, many restaurants have raised their prices since the pandemic, many companies — with more than 170,000 jobs lost in the technology sector since the start of 2023 — are cutting back. on staff, and we don’t know if a recession is around the corner. Economists generally recommend that you spend no more than 30% of your gross income on rent, and yet many people are considered “severely rent-burdened” and are spending more than those guidelines. And you are right about the tipping. People are encouraged to tip wait staff. They usually rely on tips in addition to their salary to make ends meet. How much you tip is entirely up to you, unless you’re at one of those high-end restaurants where they add a 20% or 25% tip to parties of six or more. This is to help ensure that a table occupied by a restaurant for several hours during the evening does not strain the waiting staff. Polls regularly show that most people tip 20% or even 25% for good service, but it also depends on where you live. “‘If you can afford to eat out twice a week, and pay for a G&T and a glass of wine, you can tip 20%.'” If you go to a restaurant in a city like New York, Seattle or San Francisco , expect to pay $16 or $18 for a glass of wine or cocktail. You’re not just paying for drinks, you’re paying for rent, lighting, heating, chefs, kitchen staff, cleaning staff, wait staff, in addition to alcohol. Custom suggests that 20% indicates good service. If the staff is extra friendly and helpful, feel free to go ahead, but budget tipping into your evening the same way you budget your drinks. If you can afford to eat out twice a week, and pay for a G&T and a glass of wine, you can tip 20%. Digital tipping is more difficult. It has spread from coffee shops to ice cream parlors and self-checkout kiosks. I don’t always trust the company that the tip will reach the right recipient. The machines use the “path of least resistance” model when they ask you to customize your tip by 15%, 20%, 35% or your own. Most people choose the prepared option, or choose a medium value so they don’t look like Scrooge. I don’t mind when pharmacies ask to complete my payments to donate to charity. Every little bit helps. And together we can make a big difference. But service personnel have put their health and their lives on the line during the pandemic. A study published last year looked at 69,000 cases of adults aged 25 to 64 and concluded that labor, service and retail workers were responsible for 68% of deaths in the first year of the Covid-19 pandemic. Restaurants went out of business, and those that remained fought valiantly to win back their customers’ business. According to this research, less than a third of restaurants offer employer-sponsored health insurance. I would only consider tipping less than 20% if the service was atrocious. Why? If I’m sitting pretty, waiting for someone to cook and serve me food, I can afford it. you Email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com and follow Quentin Fottrell on Twitter. Check out Moneyist Private Facebook group, where we find answers to life’s thorniest money issues. Readers write to me with all sorts of dilemmas. By emailing your questions, you agree to publish them anonymously on MarketWatch. By submitting your story to Dow Jones & Co., publisher of MarketWatch, you understand and agree that we may use your story or versions thereof in all media and platforms, including by third parties.. Moneyist regrets that he cannot answer questions personally. More from Quentin Fottrell: ‘I feel used’: My partner stays with me 5 nights a week, even though he owns his own house. Should he pay for utilities and food? Should I invest the $20,000 in cash or stocks? The stock market is volatile, and the Fed raises rates (again). ‘Poor people aren’t stupid’: I grew up in poverty, made $14 an hour and inherited $150,000. Here’s what I learned from my windfall.
