Dishing On Dating Videos Exclusive Discount! $10,000 Sweepstakes! Hot Swimsuits!

Stop Buying Lattes and Save Big

By: Excelle (View Profile)

I happened to catch a news segment about how Starbucks is being affected by the recession and it got me thinking. First, I love Starbucks and if I could have a dream office, I’d place a desk in the middle of my Starbucks and work happily. Second, I admire their business model and branding. Therefore, I found it surprising that even Starbucks’ sales were down.

Ever since we got a Starbucks next door to my office, I’ve gone through periods of going way too often. As someone who is conscious of making smart financial decisions, my Starbucks addiction doesn’t really match up. We’ve all heard Oprah, Jean Chatzky, and Suze Orman tell us how much we could save if we cut lattes out of our daily routine. Apparently, people are starting to listen.

Since I like numbers and facts, I wanted to do some math to find out how much Starbucks can really hit your wallet. Here is what I discovered:

There is an 11.5 percent tax on food and beverages in Chicago. Um, where have I been? I had never looked at my Starbucks receipt before today (oops). Why the need for an 11.5 percent tax Chicago? Have we been financing Blagojevich’s corrupt schemes or maybe paying for his newest wig. (Sorry, had to say it).

If you buy a grande latte every workday, you will spend $74.80 per month. ($3.74, 20 business days per month.)

You could do the following with $75: pay your monthly car insurance bill, buy new shoes, go out to dinner and drinks with your girlfriends twice, or save for a rainy day.

Your daily “addiction” will cost you $897.60 over the course of one year.

Now what if you decided to give up your daily Starbucks visits and direct deposit that $75 per month into a retirement account? Despite the current economic condition, the average expected return for retirement accounts is still 10 percent. If you put that $75 per month into your 401(k) plan, your contribution will grow to $5,931.18 after 5 years.

I assume you are not retiring in your thirties. Therefore, check out how much your $75 monthly contribution can grow over the years:

After 10 years the value of your investment will be $15,566.40
20 years: $57,502.27
30 years: $171,024.40
40 years: $478,333.52

Wow, now I’m impressed. Who knew that your cup of joe was so expensive in the long run! I hope this inspires you to take a look at your 401(k) contributions today and make sure you are putting at least this much away for your future. For other scenarios, check out this easy to use calculator.

Even if you think that you can’t possibly afford to save right now, try to cut something small out of your day and remember that it will lead you to big things in the future.

By Nicole Crimaldi

This article is reprinted from WomenCo.

First published January 2009

14 readers liked this story.

More from Excelle

Key terms (tags) for this article:
bill, future, starbuck, afford, cost of coffee, financial decisions (view other popular tags)

Another Saturday Night and I Ain't Got Nobody ...
05.07.2012
Love & Sex : Moving On : Starting Over

Intentful Living
04.23.2012
Body & Soul : Faith & Spirit : Religion

Click Worthy: Businesses Make Bank on “Mad Men”
03.26.2012
Entertainment : Celebrities : The Arts

Showing stories 1-3 of 10

Showing stories 1-10 of 10

view less ›

From Around the Web:

Comments

So true! Tell your boss you need a raise:)

Thanks, Tawnia. :) I know I have a legit job - but some other people don't see it like that! And I love my customers (for the most part ;D) and they love me because I take the time to ask them how their day is and see how their kid did on that math test that they were worried about the Friday before. It's not just the coffee that keeps people coming back to the shops - local or corporate monsters. There's an overall experience that is the key to customer retention. One of our regulars just had his meniscus repaired last Wednesday and, since it snowed and iced really badly today, I took him his regular coffee across the street to his office. That guy's going to come back, bad economy or not, because he knows that we value not only his patronage, but him personally. See if you can get that from a home coffee maker.

I must add, that the last time I was in Chicago...I was way out of my way, completely lost in what felt like 75 degrees below zero temperatures, about a mile or two out of my way...and the friendly Sbuxxx associates certainly were kind and friendly and truly made my day and attitude quite a bit brighter!!

I KNOW, right? Blago TOTALLY wears a wig!! I myself work for a non-profit in central IL...and I only assumed that Chicago's tax was that high based on my infrequent visits for work...I have discovered...DUNDAHNANAAAAAH! A stovetop espresso maker! I make MYSELF lattes at home EVERY SINGLE DAY...Can you tell I'm obsessed with coffee?? If not...let me tell you, I AM!! It makes equivalent to 1.5-2 shots of espresso with just regular coffee packed down tight! I fill my mug about half full with milk, nuke it for 2 minutes and add espresso...DELISH!! They're only about $10-20 at Wal-Mart...and I know you can find them at boutiques! Someone might argue that it stimulates the economy to keep purchasing from Sbuxxx...However, my pocket book can't really afford that...My personal lattes are my reason for waking in the morning!!

Shanfan-14 what you do is a legitimate job. I worked my way through college at an espresso bar. Baristas are as important to people as their hairstylist. The relationship with your customer's becomes personal. I love to pull up to an espresso bar and have the barista remember me and my drink. Never downplay what you do. It is important to people, even better that you are a college educated barista that means great coffee and good conversation:)