By Matt Lattin.
I love coffee; I love the taste, smell, and the earthiness of a quality cuppa. My standard order is a regular cap with an extra shot at the beginning of the day, and if I’m feeling adventurous, maybe a second 2:00 pm pick me up coffee. My coffee order is roughly $5-$6, and if I were to get a second coffee, that would equate to $10-$12 a day. If you have read any financial planning articles, you’ve no doubt read something similar to the following:
“By drinking coffee at home, you will save $XXX a year! and if you saved that money and invested it every day for XX amount of years, you will have $XXX.”
For the most part, these statements are factual (the disingenuous favour equations and use assumptions that deliberately boost the final output. But I digress).
I understand the math, the savings, and the benefits of not buying coffee, so why do I keep buying it? Simply because coffee is terrific, and I enjoy every cuppa. Before you refer me to the book “Addicted by Matt Noffs & Kieran Palmer”, it is on my to-read list already, and I’m looking forward to reading it. As an aspiring financial planner, I may be crucified for the acceptance and the continuation of my discretionary spending towards coffee but hear me out.
All of us are unique; we all value, enjoy, experience, and love different things. I believe our surplus cash flow (excess money after our financial obligations are met, including savings/financial plan) should be spent on items or experiences that bring you pleasure and joy, such as: donating to your favourite charity, learning a new language, exploring somewhere you’ve never been, buying art that resonates with you, dining out with friends and family, participating in sports, or simply enjoying a cup of coffee from your favourite coffee shop.
Working together with one of our financial planners at Burke Britton, we can provide advice on cash flow management strategies, constructing investment portfolios, income protection/insurance needs, debt management strategies, tax effective strategies with superannuation and much more.
But to spend more now on the things you enjoy today, proper consideration of future implications should be considered. That of which I have done so yes, I’ll buy my damn coffee.
financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.