You’ve got to admit that EVERYONE is “drinking up” all this craziness about how much it costs to go out for a cup of coffee. Headlines and influencers are battling it out every single day! Just look at this…
Suze Orman: “You need to think about it as: You are peeing $1 million down the drain as you are drinking that coffee…Do you really want to do that? No.” CNBC article
Dave Ramsey: “Your coffee habit is costing you…The point we’re making is this: be smart about where you’re spending your money. If you’re happy with your daily Starbucks, go for it! But if you’re trying to achieve other goals, turn on the coffee pot. This minor sacrifice can make a huge impact.” Ramsey Solutions article
Kevin O’Leary: “That’s such a waste of money for something that costs 20 cents. I never buy a frappe-latte-blah-blah-blah-woof-woof-woof for $2.50,” he told CNBC about shelling out for drinks at coffee shops. Yahoo Finance article
Ramit Sethi, in response to O’Leary: “We don’t take advice on cutting back on coffee from a guy who wears $11,000 custom suits. Talk about being out of touch!” said Sethi, whose money philosophy is to “spend more on the things you love and cut costs mercilessly on the things you don’t.” Yahoo Finance article
Anybody else on their 2nd bag of popcorn??
There is seriously a drama going on about this and more and more people are chiming in. Articles like Newsweek’s “Millennials Willing to Spend $7 on Coffee Because It Makes Them Happy” or Kidman & Co.’s “On How Coffee Can Improve Your Mental Health” both talk about the happiness that is associated with this daily treat. I do admit that I like my cup of coffee in the morning. It’s not out of necessity or “I WILL DIE WITHOUT IT!”, it’s more like a routine that I enjoy.
Do you buy your coffee or make it at home?
I make it at home…98% of the time. Or I should be completely honest and give all the coffee credit to my husband! That lovely man makes me pour-over coffee every morning and you know what? I have a hard time getting coffee anywhere else because I enjoy it at home, I like the consistency, and I always hated going back to the café counter to try and explain, like a spoiled coffee drinker, that it just didn’t taste right. This costs me money, costs me time, I get anxious and pray that my coffee is right this one time, and if it’s not, I deal with it. Nope! I don’t want to “deal”, I want to enjoy every drop!
Is it cheaper to make it at home? YES.
Let’s be honest, it is cheaper. The good folks over at CNET did an article in 2023 that broke down the cost of getting your cup of Joe and showed how much you would actually save. They found that if you purchased one basic Starbucks Tall drip coffee per day, you’d be spending about $462.50 per year. If you made it at home, it would cost you $155.00 per year. That’s a $307.50 savings! And that’s just basic coffee. Think about the savings for some of the other fancy drinks!
The drama behind personal finances and your cup of coffee.
So, why all the drama? It comes down to what we (the American consumers) are complaining about. Money is TIGHT right now. Inflation hurts, interest rates send us on an emotional rollercoaster, and we just can’t afford things like we used to. There’s no dancing around it…things are EXPENSIVE today. So, when we complain about not having money, many financial professionals (myself included) look for ways to minimize your spending. You want more money, and we try to show you what you can trim to get it.
Will it make THAT much of a difference?
According to Ramit Sethi, no. According to Dave Ramsey, yes. So, will it make that much of a difference to you if you remove your daily cup of coffee from the café? If you’re shoulders deep in debt and you barely feel like you can afford the basics, I would tell you to get rid of any expense and extra spending you can…including your coffee. If you don’t want to get rid of your coffee, get rid of a streaming service or something else. That’s the BEAUTY of budgeting…you can choose what you want to trim and when. The goal is to get you balanced, out of debt, and feeling at peace about their money.
So, will you make a change?
If you’re part of the group that goes to a café to buy their coffee because you say it makes you happy or it’s for your mental health, let me offer this little piece of advice…find something meaningful to give yourself happiness or mental peace. Coffee might be a quick endorphin and caffeine rush, but it won’t last and it won’t keep you happy for long. The biggest pick-me-up I’ve ever experienced is volunteering. It’s social, it’s rewarding, it creates memories, it creates relationships, it’s long-lasting, and sometimes….they give you COFFEE! Volunteering will give you the longest and biggest HAPPY JOLT you’ll ever know. I promise 🙂
These times are tough and I want you to know that you have someone in your corner…me! My goal is to help you find YOUR financial peace. I know the road is not easy because I’ve traveled my own version of it. There’s no shame in wanting a positive change for yourself. The only shame is when you give up, but I know you won’t. You’ve got this!!
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