Financial Advice for Real People: Coffeeconomics – The Real Cost of Caffeine!

It’s time to do some simple maths…

Let’s say you can’t go past a daily coffee before work and let’s say you spend an average of $4 a day, five days a week. That’s a total of $20 a week.

Now let’s say you work 48 weeks a year, that adds up to an incredible $960 per year on coffee.

But wait … it’s not ridiculous to assume you may have more than one coffee per day. Let’s assume you have two per day. That’s $40 a week.

You probably have at least one on the weekend too and let’s not forget those dreamy holiday cappuccinos.

Tally it all up and suddenly that $960 per year is looking closer to $3000!

Imagine what you could do with that money if you put it to one side instead.

And there are other clever ways to save money too.

If you can afford to do so and have the storage space, a good edict is, when something is on special, buy in bulk. Sometimes items can be discounted by up to 50 per cent and if they are non-perishable, such as toilet paper or cleaning products, then it is a great way to halve your expenditure.

And when it comes to shopping, it is a good idea to write a list before you leave home – and stick to it. Avoid impulse buys and only go down the aisles where the items you need are located. Do not deviate … it’s easy to get caught up buying unnecessary products.

In fact, it’s best to go alone too. Taking husbands (or wives) and children along can mean items mysteriously appear in your trolley at the checkout.

And never, ever go shopping when you are hungry. It’s a recipe (pardon the pun) for disaster!

Make your lunch and take it to work. You’ll be surprised how much you will save given the average lunch will cost at least $10 per day. That’s $50 a week equalling $2500 a year. Add that to the coffee and … well, we don’t think we want to go there!

And do you really need to go out to dinner once a week? Have a romantic candlelight dinner at home – a date night – instead and treat yourselves to a monthly restaurant dinner instead to reward yourselves for all your super saving prowess.

It may seem obvious but keep electricity costs down by turning off the lights and appliances, where possible. Ovens and TVs use a lot of juice and it’s unnecessary to keep them running when you are in bed asleep.

Try doing the washing outside peak times when costs rise, and consider installing solar panels, at the very least for your hot water. Of course, if you are able running your household off the sun that is an even better option.

Like reading? Don’t buy books – use a library. Alternatively check out the op shops for some reading material.

And when it comes to op shops, check out what funky clothes might be wonderful additions to your wardrobe.

Or if op shops aren’t your thing, shop around and buy items on special. Look to buy classic outfits that will stand the test of time instead of the latest fad which will look ridiculous if you are foolish enough to bring it out next season. You probably won’t do it twice!

Clean out your cupboards and wardrobes at least once a year – have a garage sale or sell items on sites such as Gumtree or Facebook. You’ll be surprised how much you can make on preloved clothes and furniture.

When it comes to holidays, think about camping instead of flying to a tropical destination. There are some amazing places to visit right here in Australia and it’s a great way to explore the country and fabulous for children to experience.

Throw all your loose change into a jar and when it’s full take it to the bank – you won’t even miss it from your wallet.

Review your insurances (including health), the interest you are paying on your mortgage, and the fees you are paying through your bank accounts, as well as superannuation.

Take a deep dive into your finances. Stop credit card spending and sit down with a financial planner to see where you can not only cut costs but amass money and then look into some solid saving plans and investment opportunities.

Create a budget and stick to it. Put some funds aside for emergencies but otherwise get tough with yourself. Be firm, but fair.

Treat yourself occasionally but definitely drink less coffee!

If you would like to speak to a financial adviser, contact us today.