Save A cup of coffee...

If you're buying your coffee from the shops it's expensive af.

I know my boss complains about not having money yet buys a coffee everyday which is pretty expensive.

I like coffee too but i buy the beans and make my own

 

I Totally respect everyone's views and love the replies and feedback, both for and against my post. You are all what make this the greatest forum in the world

Whilst coffee was the subject of the post my point was more around the fact that saying cutting something out just based on cost alone is
really not analyzing the deeper value, usually happiness. Happiness leads to everything positive, if your happy doesn't actually matter how much money you have.

I know some people have replied saying that's all well and good if you have money. It actually doesn't change a thing for me. But I do contribute any success I have (I'm not wealthy mind you and my wife just took a 25k paycut to do something that makes her happy). Because I do the things that make me happy.

If I cut out coffee, yay I save $3,500. What's the cost of me having nothing to look forward to first thing in the morning? I'm going to kick off the day on the wrong foot. I start each day with my coffee and a smile, that reflects in my work.
Who's to say coffee isn't the reason for my last pay rise? My boss and I bond over coffee, she often says "G ur chirpy in the morning"
That's not me, that's the coffee talking

I'm all for saving money but not at the expense of happiness. You like pay TV, cut Foxtel and get Netflix (or Kodi). You have a home loan, speak to a broker and get a better rate, you have bills to pay, call your providers and demand a discount. All these things can be done without sacrifice and they will save WAY more than cutting something that brings you joy.

I honestly believe most of the population could save a years worth of coffee simply be reviewing their home loan, a few hours work and ZERO lifestyle change but instead budgeting experts focus on poor coffee.

 

Fortunately (or unfortunately?) the last thing I need is coffee!
However, wouldn't get out of bed without tea.
I did 10 years with neither tea nor coffee. OMG

 

It sounds like you are financially comfortable, with as many IPs etc. as you want.

So, for you, this sort of 'invisible' spending is no problem.

However, for someone trying to save for a PPOR or IP deposit, or who loses a job - every little bit of savings counts.

Cutting out purchased coffees, bringing lunches from home, walking instead of paying for a gym membership etc are really simple ways to make immediate savings.

Life is all about choices.

We can choose to take control and give up X (which makes us happy now) to gain goal Y which will also make us happy (or happier) in future.

For some it will be cutting breakfast out, for others it will be FOXTEL, for others stopping taking taxis, some will cut coffee, others will cut out purchased smoothies, cocktails or shoe shopping.

Seems fine to me.

 

Maybe it's a bit like saying my Audi suv makes me feel safer getting to work and my designer shoes are important for my image at work (chai latte sets me up for the morning at work). If you didn't buy all these things you may not need to go to work in the first place, or not as often. Just a thought

 

I have an Aeropress and found some beans I really like. I take it into work (and pretty much wherever I go..)

I think all of the discussion above comes back to your balance of saving/investing and using money to fund your lifestyle. If you can create a budget that includes coffee and other items in your lifestyle and still meet your investing goals - Great!. That is the whole point of a budget - Limit overall spending so you can afford more.

If you are a low income earner - a daily coffee might make it difficult to achieve your overall investing goals. You either have to spend less or earn more.

As my income grows, I am definitely going to indulge more (Particularly on coffee). At the moment though, my investing goals I have set are more important to me than a daily coffee - especially when I have a very good alternative in my Aeropress.

 

The other viewpoint I have towards spending money on items like coffee is this:

If coffee costs me $3000 a year, would I give 2,3 or 4 weeks of my time (depending on how much you earn) in exchange for a daily coffee for a year.

If the answer is yes - Enjoy it as it obviously add value to your life.

 

@albanga yes I get it too.... not everything in life can be directly correlated to $$$'s alone.

You also raise a very good point about soft targets (like coffee) rather than addressing the elephant in the room. Ie. bigger expenses that with very little effort can save even more without sacrificing anything at all. Options could be to switch phone carriers, review your Elec/Gas supplier rates, live with a flatmate, survive with 1 car per couple or possibly none if in a central city locale, etc... etc...

The bigger one is..... buy a 50k cheaper house.... that's a lot of coffee right there, not to mention interest savings! Oh, I can hear the wails already....

 

Great energy
You have an awesome attitude Al
X

 

It shares the wealth around and helps keep the economy vibrant too. I drop by a local cafe on the way to work. Usually there are 4-5 staff busy preparing the days salads and sandwiches. That's at 7am. Some of the staff are still there 10 hours later. Very long days and all have been working hard to make their living and always with a smile.

Similar story, different cafe when I walk up the road from work for a second coffee

 

I have a 26 year old employee - great guy - who has 3 kids under 5, and has announced he is saving for a deposit...they are renters, he is a smoker, has takeaway lunches and smoko every day, drinks cokes and redbulls, and turns up to work each day sipping on a.......takeaway coffee.
He has shown no signs of cutting back on any of these items so far in a year since making the statement.
I say nothing, because I have watched this movie before.
This is exactly the example of "the latte factor" principle.
Yes; what's a coffee?....but let's put it into perspective of our goals (and income).

 

So...the story originates with ciggies, but equally applies to coffee.

Counsellor: "With what you have spent over the length of your smoking you could buy a Ferrari!"
Smoker: "So, have you ever smoked?"
Counsellor: "Absolutely not!!"
Smoker:"So where is your Ferrari parked?"

Point of the story is that the little extravagances require a lifetime of discipline in order to make a material difference, if any difference at all. The $3.50 not spent on the coffee is rarely saved, and at $3.50 per day would it actually be possible to save the 20% deposit on a Melbourne or Sydney house?

I have had the misfortune of having had 3 work colleagues die unexpectedly - one whilst giving a presentation at the office. We don't know how long we have here, so best make the most of every day. The important thing is to also have a plan you're working towards for your future.

 

Exactly, and your financial position is key in working this out. For some a few coffees and extravagances won't get in the way going forward, but if they do then there's a choice to be made.

 

I don't agree. I don't drink coffee and don't eat out much but I have more money than if I did.

I don't miss coffee and I never really enjoyed eating out. Actually, I find eating out quite stressful. I would much rather eat good food at home. That would make me happy.

 

Thanks for the lecture but I would rather a home cooked meal over eating out any day of the week. From my point of view I find it sad that a good home cooked meal and a quiet night in would make you miserable. Isn't it great that we are not all the same?

I quit coffee this year and I miss it occasionally. However I never miss the splitting headaches I would get most Sundays because I skipped coffee on the weekend. Sometimes the headaches were so bad I could not sleep. Guess how many headaches since quitting coffee? None! If you look at it that way, those headaches were fairly expensive and made me miserable, so...

So next time you feel like judging someone, maybe take a few minutes to think that what makes them happy might be different to what makes you happy and that's ok. I don't judge you for going out to eat, so please don't judge my quiet night in with a good home cooked meal that makes me happy.

 

Whoa who was attacking anyone??

If you prefer to eat at home then more power to you, I don't recall anyone ever judging anyone because they don't drink coffee or don't eat out.
The post is about seeing the deeper value in things, not just putting a simple dollar value on something.

Perhaps this forum isn't bringing you joy if you feel like anything written here is an attack on anyone.

 

I see so much snobbery around eating out and which place has the best coffee. Personally it bores the wots it out of me but when working in the office/treadmill it's often best to go along with it just to fit in. People can genuinely perceive that you are missing out if you don't share their love of these things.

 

I also quit alcohol this year. I don't miss it at all. Drinking did not make me happy at all, so from that point of view it was a waste of money, wasn't it? I am wondering what the office Christmas party will be like without booze!

 

I love your work PG but I have to draw the line somewhere. Grog is probably my weakness (but I can even do that on a budget)