(WAFF) - Coffee is a must in the morning for many of you.
However, one in three Americans spent more on coffee last year than their personal investments.
Rachel DePompa partnered with NerdWallet to find out how keeping it all in perspective, can help you save. For many the day begins with the habit of spending on a cup of Joe to go.
“Yeah I drink about a half pot of coffee before work and everyday I get my iced coffee and I may get another one on my way home,” said Robert Grow.
“A venti is what I require! Which is going to be $6, about $6.50 a day,” said Jo Planter.
“Say you spend $20 a week on coffee, well that works out to $1,040 a year. Now if you were to invest that instead of just drinking the coffee at an annual rate of 6%, you’d have an extra $170,000 for your retirement. But if you just kept drinking that coffee you’d eventually have spent $41,600 dollars on drinks with nothing to show for it,” said Rachel DePompa.
“Coffee gets such a bad wrap,” said Arielle O’Shea.
Arielle O’Shea writes about retirement for the financial website NerdWallet.
I mean a $100,000 that’s a lot of money! I think most people in retirement would take an extra hundred thousand dollars But you also want to think about, you know it’s all about give and take," said O’Shea.
Do you have more house than you can afford? Should you refinance? More car than you can pay for monthly? Are you taking multiple vacations a year instead of saving for retirement? O’Shea says those are the expenses that are really going to sabotage your saving.
“Going and buying that coffee out makes you happy than cut back somewhere else. It’s just important to be mindful I think,” said O’Shea.
The problem isn’t the coffee, really it’s buying things without thinking about them and ignoring how those purchases can add up.
That’s the beauty of a budget. People think budgeting is so restrictive. It’s you know like this dirty word like dieting, but the beauty of a budget is your actually giving yourself permission to spend on certain things," said O’Shea.
Because in the game of life, winning is saving up for your retirement and enjoying the ride along the way.