Coffee – save it or savour it?
Coffee – save it or savour it?
The cost of a daily cup of coffee is often used as an example of money that could be better used for saving.
So does that mean that if you buy coffee you’re making a bad financial decision? Well, no - not if you've budgeted for it.
It’s true that $20 a week worth of flat whites or lattes could add up to a tidy amount over the years - thanks to the power of compound interest. For example, according to our Regular savings calculator, $20 saved each week for 30 years at a 2.5% real rate of return adds up to a very tasty $64,837.
But that doesn't mean you shouldn’t enjoy a nice coffee if you want to. What is important is to include things like regular coffees or lotto tickets or bought lunches in your budget, to know how much they cost over the year, and to decide for yourself if that's where you want your money to go.
You may choose to favour the short-term benefit of a caffeine hit over the long-term benefit of a larger nest egg in retirement. It’s your decision.
What's the one treat you wouldn't want to cut from your budget? Coffee? Pay TV? Chocolate? Magazines?
User comments 60K?
Is 60K really going to do much for you for retirement? I'd rather enjoy life now drinking coffee a few times a week than have a meager 60k for retirement. I've analyzed the socks out of this "latte factor" thing here ... http://livinginvol.com/?p=6
Posted at 04:09 pm on March 12, 2010 Flybuy freebies
In answer to Rubi, how do you get flybuy freebies. Join flybuys. It's free. Earn points on purchases you have to make anyway like petrol, plants, appliances, chemist, even surveys! etc etc by shopping at "FlyBuys" shops (only when they are cheaper or the same price only!). Dont get sucked in to a higher price for the sake of a few fly buy points!). After a couple of years you have enough points to claim rewards. See flybuys.co.nz (no I dont work for them, I just love stuff for free, when it is that easy..!). I like flybuys coz it is free to join, other programs often have a fee, not worh it, or encourage you to spend money on your credit card, arghhh! NOoooooo! Enjoy your coffee machine in a few years..!
Posted at 12:43 pm on September 25, 2009 Re: Coffee in budget calculator
I use the comment feature in the budget tool to remind me where i have put things !!
Posted at 03:46 pm on September 24, 2009 Re: Coffee in budget calculator
Over to you which line item you use - Bought lunches under Food & groceries or Bars, clubs and cafes under Entertainment... whichever works for you!
Posted at 02:56 pm on September 24, 2009 Coffee in budget calculator
Where do you put coffee in your budget calculator, is it bought lunches or entertainment?? I'm trying to add up how much money goes on them and where I can cut back.
Posted at 02:38 pm on September 24, 2009 
