Our credit counseling advice is to always look for ways to save money. One of the easiest money saving tips around is ditching your morning Dunkin or Starbucks. However, one CEO is challenging that advice. Let’s take a look at the power of buying morning coffee in this Weekly Round-Up.
Is Buying Morning Coffee Worth It?
First, let’s take a look at the traditional argument against buying morning coffee. The Talking Cents Blog has actually covered this topic over the years. We made an infographic and everything!
As you can see, it is way cheaper (and easier on your budget) to make your own coffee at home. You save around $1,000 while still being able to enjoy your favorite morning beverage. Plus, this infographic is a few years old; the savings could be slightly higher as prices climb. I personally enjoy the coffee I make at home better since it’s exactly how I like it.
A thousand dollars could be used for a variety of financial goals: your immediate emergency fund, pay off debts, or give you savings for a down payment or vacation. It takes time to accumulate, but you could end up with a large chunk of change if you are diligent.
Although this sounds simple, I do have some questions of my own. Are you really going to save the money you would spend on the coffee everyday? Why not give yourself a coffee you enjoy for a few dollars and make wise financial decisions on more substantial ambitions? Sometimes it’s helpful for spender personalities to have a little leeway while working on financial goals.
Sallie Krawcheck on Buying Morning Coffee
Recently, Sallie Krawcheck, who is the CEO of the financial planning company Ellevest, has come out against this savings tip. She questions whether this move would actually wield the savings and rewards other financial advisors claim it can with money management.
Here is an expert from her op-ed:
“Women have effectively internalized the messages that our society sends them about money, and the result is that the primary emotion so many of us feel about money is shame. We feel shame when we are in debt; we feel shame because we spend too much, certainly; we feel shame because we earn too little–and we even feel shame because we earn too much.
So this isn’t about the lattes. It’s never been about the lattes. Or any of the other ways we women are told we’re deficient around money. It’s about changing the narrative to recognize the real challenges we face as women and tackling real issues.”
Should buying morning coffee continue? Absolutely. As long as you can find it reasonably in the budget. Remember to stay within your budget and make sure your goals are moving forward while treating yourself.
If you’re struggling to pay off debt, ACCC may be able to help. Sign up for a free credit counseling session with us today.