Found a guest column by Chase Walters on the Daily Shot of Coffee blog and I thought I’d pass it along.
Most people wish they had better control over their finances and more money to invest in savings. Often, we look at our largest bills as the culprit draining our paychecks, and mortgages and car payments certainly do add up.
However, it’s often smaller purchases that really add up over time and these are the purchases that are often overlooked. For example, many of us indulge in a morning cup of coffee and $4 for a latte doesn’t sound all that expensive.
But let us look at how much that cup of joe can cost you over the course of a week, month and year. Even if you only bought coffee on weekdays, you’d spend $20 a week. That adds up to $80 a month and $960 a year.
Most people would be thrilled to have an extra $960 a year, and that is only the savings of one spending habit!
If you pick up a weekly copy of a tabloid magazine at the newsstand, you’re spending close to $200 a year. The daily newspaper will cost, on average, $360 a year.
Perhaps you also eat out at a fast food restaurant three times a week. Spending a mere $5 on lunch sounds like a great deal, but it adds up quickly. You’re spending $60 a month which equals $720 a year for fast food.
All of these very common small purchases add up to over $2000 a year!
What can you do with an extra $2000? A wise move would be to invest the money. Investing often sounds intimidating and complicated, but it doesn’t have to be.
For example, say you’ve decided to give up your small purchases for an entire month. You now have an extra $170 in the bank. You invest this $170 in an investment account with an average rate of return of 8%. You continue to contribute the $170 every month. Over the course of 20 years, you’d earn over $101,000.
Yes, it’s true. By simply giving up small indulgences each month, you can save over $101,000 towards retirement.
This is an average calculation. Depending on where you invest your money, you can potentially earn a higher rate of return.
This all sounds like a wonderful plan, but how does one actually achieve continued success cutting back on indulgences that you truly enjoy?
Consider purchasing a good coffee maker and brew your own cup of coffee at home. Add in the cost of packaged coffee or coffee beans from the Kona Cowboy Coffee Company plus cream and sugar if you use them and you’ll still only pay approximately 42 cents per cup of coffee. That means you’ll still be saving $860 a year on coffee.
Pack your own lunch instead of eating out. A turkey and cheese sandwich, plus an apple and some cookies averages only $1.31.
If you can’t imagine giving up the magazine or newspaper you really enjoy, consider a few alternatives. Go to your local library to read these items for free. Borrow copies from a friend, or read articles online. Even becoming a subscriber instead of buying off the newsstand can save you hundreds of dollars a year.
To begin saving money, start keeping track of all your purchases and look at where your money is going. Decide what you can eliminate or cut back on, and add up the savings.
The purpose of this blog is to unite Kona coffee lovers and perhaps learn a little about coffee and all the benefits of coffee at the same time. Join up, become a member, comment and have fun! You can find the Kona Coffee Fiends group on Facebook and we’d appreciate it if Facebook users would “LIKE” the Kona Cowboy Coffee Company page at www.facebook.com/pages/Kona-Cowboy-Coffee-Company/222070817858553. Just copy and paste to your browser. You can also find us on Twitter at http://twitter.com/#!/jackshuster. And on the web at www.KonaCowboyCoffee.com to order your gourmet coffee and coffee products.
Look for the Kona Cowboy Coffee Company’s Cowboy Coffee Saloon at the SASS U.S. Open, September 4 – 9 at the World Shooting Complex in Sparta, Illinois.
You know you’re a coffee fiend when Instant coffee takes too long! So enjoy your coffee, make it Kona, and remember, Kona is the home of the Hawaiian cowboy…and we had cowboys in Kona before there were cowboys in Texas!