Do you stop on the way to work to buy coffee or do you buy that occasional specialty coffee drink? If you were to purchase one specialty coffee drink at an average price of $4.57 (including tax) five times a week, you would spend approximately $1188 per year.
In comparison you could purchase a 2-pound bag of coffee beans that should yield 129 cups of coffee at a cost of 13 cents per cup or $34 for 260 weekdays per year. Your specialty coffee costs you $1154 per year. If you were to invest this money (savings) into 3% interest bearing account in 10 years you would have accumulated approximately $13,244. If your investment had a 2 percent return you would have accumulated approximately $12,640.
Now let’s be realistic, I for example, enjoy an occasional specialty coffee drink. I don’t usually recommend that a person totally delete an expense from their budget. After all, we should include some fun money in our budget if we want it to be successful. Perhaps a realistic goal would be to limit your specialty coffee drinks to 2 to 3 times per week. As long as you had the money in your budget to cover this cost previously you should be able to invest that money saving approximately $6300 or more in a 10 year time frame.
And now, all this coffee talk has left me craving coffee. Do I brew my own or head to the coffee shop!?
Carol Harrison is an NFCC certified financial professional with The Village Financial Service Center.
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