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!