Nov. 23 – Starbucks or Speedway?

Gay Lynn HillBell Ringers, Economics(BR)

Nov. 23, National Espresso Day.



We all have habits that can be pretty costly in the long run. Whether you tend to eat out several times a week, spend a little too much going out every weekend, or make regular impulse purchases, the costs add up and can eat away at your budget. One of the most common costly habits is probably a coffee addiction.

By no means is coffee a bad thing. Many of us rely on it to wake us up in the morning and help us power through our day. Not only does coffee make us more awake and more alert, improving our productivity, but it also has proven health benefits.

At the same time, paying $5 or more a day for Starbucks quickly adds up. Cutting out that expensive latte habit and replacing it with gas station coffee, or even brewing your own at home or work, can save you well over $1000 a year. For the average American worker, that’s no insignificant amount, and could go a long way towards helping you reach your saving or other spending goals.

If nothing but Starbucks will suffice, include the expected cost of your coffee habit in your monthly or yearly budget, and look for other areas where you can cut costs. The key takeaway should be to develop a reasonable budget and stick to it as best as possible so that you aren’t compromising your longer-term goals for unnecessary current spending.


Questions:
  1. What habits do you have that are probably costing you more than you like, or more than you might realize?
  2. Do you keep track of your spending habits and currently have a detailed budget? How well do you stick to it?
  3. What are some compromises you can make in current spending to save more for the future?

Image Citation:

17, July 2018, Starbucks Store. [Digital image]. Retrieved from <news.starbucks.com/news/starbucks-accelerates-growth-of-store-formats>.