Let go of Coffee for your savings & investments

Thursday, January 28, 2016

Let go of Coffee for your savings & investments


Photo Source from coffee.gotham
Coffee is actually very healthy. There are a bunch of research and studies about it. It is loaded with antioxidants and beneficial nutrients that can improve your health. The studies show that coffee drinkers have a much lower risk of several serious diseases. BUT, it's not as valuable as water wherein we really NEED it.

The Coffee industry is a big income generator around the world generating at least about $30 billion in annual revenue (in the US so that's just one country and that's not the only country that demands coffee).

Also, there is controversy that also plague this beloved drink, reports of toxicity stemming from dangerous growing methods and the roasting process; there’s also that addicting properties of caffeine, as well as the issue of acidity. But we will be talking about your personal spend on coffee.

So with that, I'M SO SORRY COFFEE LOVERS!!

Now that's out of the way, let’s have a sample computation:
-Php150.00 x 2 drinks a day - for a branded coffee
-That's Php2100.00 / week (or seven days)
-Php9,000.00 / month
-Php108,000.00 / year

Okay, that's a frap! A plain-ass coffee would cost around Php75.00 (still the lowest branded coffee)
-Php75.00
-Php2,250.00 / month
-Php27,000.00 / year

So, if you are earning Php27,000.00 per month then it’s safe to say that you are spending a month's-worth of your salary for that Php75.00 coffee per day. It might have been a million in 40, 20 or even 10 years if you have used it in investment or business.

Fine, that's over simplifying it but you still need savings (money set aside) for you to pay off your bills, health plan, insurance, emergency funds and then investments.

Wait, you are probably thinking.. "I'm gonna buy 3 in one coffee instead!" that's fine; let's calculate:
3 in 1 sachet costs about Php8.00 and let's say one's consumption is at least twice a days since it's cheap right?
-Php16.00 per day
-Php480.00 per month
-Php5,760.00 a year

Well, you can justify all you want but that's still a potential savings of over Php5,000.00. This can be invested as a start in a pooled fund like a UITF or mutual funds or open an online stock market broker account to begin investing!

Come on, I know you can do it! Is coffee a need or a want? A medication? Who knows, but ultimately, you decide. Heck, ask a friend to treat you to coffee or just use company provided coffee instead! :)

The future is in your hands. For now, I'll settle bringing a water bottle and get enjoy my boring H2O!
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