I’ve been in Florida for 12 years and coffee is a daily ritual. Even if I tried to cut coffee it isn’t an easy task because my wife is Cuban. Since I’ve been introduced to Cuban coffee, it has opened the flood gates and I’ve been more interested in coffee in general. Most of us buy coffee from Starbucks (obviously), Dunkin Donuts (the cold brew is surprisingly very good!), Panther coffee and other coffee shops in your local markets. As we all know, coffee ain’t cheap. You’re easily paying $3-$6 dollars a pop depending on the flavors and the size of the cup. So, this got me wondering about the economic impact this has on our wallets. How much are we really spending on coffee and how is this borderline addiction impacting our savings?
I’ve done some research and the information I found is really interesting. If you’re drinking one cup of coffee a day, maybe even 2 and a cafecito (if you do, that’s hardcore) this should open your eyes about how much you’re actually spending on coffee.
According to statistics provided by the Harvard School of Public Health, Americans spend 40 billion dollars on coffee each year. The average price of an espresso-based drink is $2.45, while the average price for a brewed cup of coffee is $1.38. On average, Americans drink 3.1 cups of coffee a day and the average size of a cup is 9 oz. This definitely solidifies the fact that we drink a lot of coffee.
Here are more statistics, according to the 2015 Square Coffee Report below are the average costs of per type of coffee and by region of the country you are in…
From information provided by the Square report, lets just say you are in the Florida market and you drink coffee twice a day…an iced coffee, $2.83, a regular coffee, $2.45, and for those cafecito drinkers I’m giving you the benefit of the doubt and I’m not adding it to this calculation. Those 2 cups of coffee are $5.28 a day. If this is your daily ritual, you are spending $26.4 in 5 business days (I won’t even calculate the weekends, I’m being nice). This turns out to be $1,372.8 annually and $6,864 in five years.
Lets compare that to brewing coffee at home. Some reports indicate that brewing coffee at home can be as low as 11 cents a cup (ground coffee) and others say 60 cents. For the sake of a simple argument, lets say it costs 35 cents to brew ground coffee at home. If you’re drinking 2 cups of coffee a day a week, that’s going to cost you $182 a year and $910 in five years.
There you have it. Would you rather spend $1,372.8 or $182 a year? How about $910 compared to $6,864 in five years? The difference is substantial and with that you can pay down your debt, build your emergency fund, or invest it in your retirement fund.
You may be asking, “how can I keep my 2 cups of coffee a day and save at the same time?”
- First, do the math. If you’ve been tracking your expense, find out how much you are spending on coffee and how frequently you drink coffee.
- Set a goal for yourself. Reference the calculations I used and set monthly goals to reduce your coffee expenses.
- Next, brew your coffee at home. Make sure to have the right equipment in your kitchen to brew the coffee.
- Find the best deals for your ground coffee (Amazon is a great place to search)
- Stay hyper focused on your financial goals. Stay committed and keep your eyes on the price.
Trust me, these small adjustments will have such a great impact on your financial life and as you see the impact it has on your bank account you will implement this same strategy to other categories of expenses. I’m doing it myself when I found out how much I was paying for UberEats!