Why expensive coffee is costing you so much money, why financial writers talk about how to save money on coffee so much, and a free online calculator to see how to save money at a coffee shop
Why financial writers hate Starbucks
If you have ever in your life read a list of ways to save money, there is nearly a 100% chance that you have heard the advice that you should make your own coffee at home instead of buying it from Starbucks. There is a good reason that the idea of not buying coffee shows up on so many lists of ways to save money, it is really the low hanging fruit of ways to cut your budget. It is expensive, there are easy alternatives that cost much less, it is something that lots of people can relate to, and it isn’t something you really need. All this makes it an easy thing for finance writers to suggest as a way to save money.
The other reason it is such a common suggestion is that expensive coffee illustrates a principle that isn’t difficult, but can be hard for some people to see. That principal is that small amounts of money multiplied by many purchases add up to large amounts of money. That is, saving just a few dollars per day will save you a bunch of money over a long period of time such as a month or a year.
Why there are so many Starbucks
The problem is that expensive coffee is so delicious. (I have never actually tried a Starbucks coffee, but that is what I have been told) Even if people understand how much money they can save, the fact that it tastes so good makes it hard to resist. Many people view it as a daily reward for having the courage to get up, get dressed, and go to work.
I understand that completely, so it makes perfect sense for people to find it too difficult to give up on their favorite treat. So if you find it too hard to give up on expensive Starbucks completely, what if you just cut down a little bit? If you currently go to Starbucks 5 times a week, maybe you could cut it down to 4 times a week. After a few weeks of that, maybe you could reduce it down to 3 times per week. No matter how much you cut down, every little bit will save you quite a bit of money.
How much money can you save?
You can use this free online calculator to determine how much money you are saving on coffee. Then you can change the information to see how much you could save by cutting back a little bit. Try reducing the amount of times you go to a coffee shop by once or twice a week and increasing the number of times you make coffee at home by once or twice per week. How much did your total annual costs go down? When you see how much you can save just by cutting back a little maybe this will be give you the motivation to start spending less. Give it a try.
Photo courtesy of Ahmad Ziyad Maricar