The Daily Coffee

Caffeine is a part of many people's daily routine and some have more than one cup of coffee in a day.

Image: What's better than a fresh cup of coffee

In many conversations over coffee, we often hear the following:

"But I have no money to save..."

Admit it, everyone of us here have said this at least once for as long as we have breathed.

Is this really the case or is this just a convenient excuse?

We all know that money is not everything yet without money, we cannot get anything. Money is powerful but yet how many are harnessing the power of money?

It is the same for avid gamers where they know they have to train up their character and store or keep their manna (or power) in order to become stronger and then defeat the big bad boss.

So, it is relatively quite the same when it comes to saving money.

Where do we begin now? How about a cup of joe?

And I am talking about the fanciful artisan coffees that you grab every now & then just before you head up to your desk in the morning, or after your lunch to help you fight the Z-monster in the afternoon. Typically, that cup of joe will set you back $6 per serving and $180 for 30 days!

A HUNDRED AND EIGHTY DOLLARS!

And this figure is only for one cup a day and I know some of us here are guilty of two cups a day.

We all know that we can actually cut back on this aspect of expense but we chose not to and yet you & I have said there is no money to save. Indulgence or reward, call it what you like, does not have to be a daily thing. It makes the indulgence or reward cheap and after some time, you are just going for it habitually!

Let's do some math...

Image: And so they say, unicorns are magical..

Total cost of arabica coffee in 30 days: $180

Total cost of robusta coffee in 30 days: $30

Amount of savings you can have: $150/month

One may then argue, "Can't I even have one cup of artisan coffee a week?!"

Sure, you may and we throw in one more for your enjoyment!

Let us refresh the figures now.

Total cost of arabica coffee: $6 x 5 days = $30

Total cost of robusta coffee: $1 x 25 days = $25

You can save: $180 - $55 = $125/month

$125 savings a month translate to

$1,500 a year!

That is quite a bit, to be honest!

Imagine the amount you can save up, if you put this amount of savings into a recurring plan with a compounding effect* year after year!

*We will touch on the topic of compounding effect later on in the near future!

And did you realise that you are actually spending 7.5% of your bring-home salary on just coffee?

(Assuming that your gross salary is $3,000 and $2,400 after CPF contribution)

Calculation: ($180/$2,400) x 100% = 7.5%

Do something with your money and empower yourself for the future you!

FYI: the prices you see in this article is an estimation and is in a whole number for simple illustrations, in SGD

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