When most of the countries went into quarantine in march following the pandemic outbreak, we had to give up on one of our excellent morning routines: grabbing a cup of coffee at Starbucks or the small café at the corner on our way to work. Six months later, following the quarantine, we have been consuming our homemade coffee while at home. After months, you may notice an increase in your bank savings account.
If you take time to calculate the amount, you will notice that the trips you took to Starbucks for your coffee impact your bank account. If an average coffee drinker takes time to make their coffee at home instead of getting it from the café, they will save a thousand dollars annually.
Depending on how you prefer to take your coffee and where you live, buying a cup of coffee will cost you $1 to $5. At the same time, you will spend 18 to 20 cents to brew a cup of coffee at home. It means if you opt to get your coffee from a café, you will spend approximately $5 to $25 a week and between $20 to $100 a month.
A coffee enthusiast and president of Bone Fide Wealth calculated the amount of money you save when consuming homemade coffee. He says that if a person takes two cups of coffee every day, yearly, he will save up to $1500 by opting for homemade coffee. That’s why those who are shrewd on their earnings are against spending it in a coffee bar; instead, they focus on essential expenditures. For example, Kevin O’Leary, a Shark Tank star told CNBC Make It he cannot pay more than $3 for a cup of coffee; instead, he chooses to make his coffee at home that cost him 20 cents, and invest in the rest.
David Bach, the author of “The Latte Factor” and a wealth manager, is also getting rid of the coffee bar. He wrote in “The Automatic Millionaire, “we waste too much of our hard-earned cash on unnecessary expenses without knowing they add up.” He goes ahead to argue that if we stop spending so much cash on small splurges like costly caffeine drinks, we will have more money to invest in meaningful projects and purchases.
Cutting the cost you incur for your coffee at Starbucks will not help you afford a car or a house. But it will save you a lot of dollars. People are adapting to new habits and new ways of life. This means that even if there is a vaccine for the virus, people will remain at their adapted habits like consuming homemade coffee before entering their workplaces. The rules of engagement are also changing, which shows people have a new way of working.
Though the amount you save by making coffee at home is not promising, it will help you know where you need to invest in with the savings. For example, cash can be for emergency purposes.
