Is Your Coffee Worth $10,000?

by | May 15, 2024 | accounting, Bookkeeping, Money Management

Impulse and convenient vs intentional and deliberate

Is Your Daily Coffee Worth $10,000?

Remember that “Ring a Ding Ding” episode from Sex in the City where Carrie realizes she’s blown $40,000 on shoes instead of saving for her apartment? Are you unknowingly blowing your financial security? It’s easy and I see people do it every day. All it takes is as little as $27 of unintentional spending. Yup, that’s it. $27. That might not sound like much, but over the course of a year, it adds up to a staggering $10,000! Can you imagine throwing $10,000 out your car window as you drive? No? Then read on and discover how to stop the bleed. It’s simpler than you might think and in no time you’ll be taking back those funds and doing something you’ll really appreciate, like expanding your business, paying off debt, maybe a retreat to rekindle your creative spark, maybe you need a piece of equipment or have been trying to save an emergency fund?

Let’s trace the footsteps of a typical day where your hard-earned money slips quietly away:

  1. Morning Coffee Ritual: Your day kick-starts in the local café. A latte and a gourmet muffin, and voila, $8 vanishes before your first client email is even drafted.
  2. Mid-Morning Munch: By mid-morning, you’re refueling with a $5 bottled water and a granola bar from the deli next door. It’s quick, it’s easy, but those little spends are sneaky.
  3. Lunchtime Luxuries: Come noon, you treat yourself to a $14 salad and drin from your local cafe. It’s fresh, it’s flavorful, but is it nibbling away at your profit margins?

There you have it, a smooth $27 spent in just one day. While each purchase might seem like a mere drop, together, they’re a torrent washing away over $10,000 each year!

Strategies to Plug the Financial Leaks:

Now, let’s chat about how you can plug those money leaks and redirect these funds towards something more meaningful.

1. Design a Budget That Suits Your Style:

Spending your money on paper first means you’re not wondering where it disappeared to. Give every dollar a job. Make it functional, beautiful, and effective. Understand what expenses are truly essential for your business and personal life, and which are merely nice-to-haves.

Every dollar you spend should work for you. If it doesn’t add value, it’s not worth your hard-earned cash. Apply the 24-hour rule for larger expenses—it gives you the clarity of a good night’s sleep to decide. Ask yourself – Is it necessary? Can it wait? Is this the best price from the best retailer?

2. Brew Your Own Success:

Making coffee or tea at home and investing in a good coffee maker for your office is a small change that drives huge results. Keep your favorite brew at hand and curbs your café spending.

3. Lunch as a Luxe Affair:

Packing lunch isn’t just economical; it’s also a healthier choice. Use this as an opportunity to plan meals that fuel your productivity and fit your busy lifestyle. I love making enough for dinner to eat for lunch the next day to save me time and money. A mini crockpot lunch box heats it up in a flash. Chicken salad wraps are fast and easy as well as cost effective by using canned or rotisserie chicken. You can get creative with flavors like bbq, chipotle, lemon pepper, buffalo, teriyaki, Italian, Greek AND you can use up the veggies you have in your frig to sneak in some veggies.

4. Smart Snacking:

Buy your snacks and drinks in bulk and keep a stash at your workplace. This not only saves money but also saves time. Save even more money by baking treats or popping popcorn yourself and storing in individual servings you can grab and go.

5. Audit Your Subscriptions:

Keep an eye on all your subscriptions, from software to magazines. We sign up for things that we fully intend on using but the reality is, there’s usually not enough time or they don’t rank in importance. If you haven’t used a service in the past month, it’s likely you don’t need it. Most debit and credit card online portals have a recurring transaction feature for you to quickly review instead of having to go through your statements.

What Could You Do with That Money Instead?

Transforming Leaks into Lakes:

  • Emergency Fund: Build an “Oh $h!T Fund” that gives you a financial buffer from inevitable  surprises expenses.
  • Debt-Free Life: Picture your life without the burden of paying on debt. Every penny saved from these daily spends brings that vision closer to reality.
  • Classes: Always wanted to master a new skill? Spend your money on leveling up and go from mindless spending to meaningful learning.
  • Dream Vacations: Those dollars can fund your travel dreams, bringing you closer to lounging on exotic beaches or exploring ancient cities.
  • Retire: Imagine a retirement filled with luxury and leisure, all thanks to the wise financial choices you make today.
  • New Equipment: Need new equipment? Been trying to save for it? You just found your funding!

So, next time you reach for that daily indulgence, ask yourself, “Is this worth it?” Or could your money be the ticket to achieving something bigger and more meaningful that your future self would appreciate more than a morning latte.  This is where bookkeeping can help. You can run those reports and see where you’re spending and where you can potentially make some cuts or even a strategic overhaul of your daily expenses. Let’s not just save; let’s save smart and spend smarter—because every dollar saved today is a brick in the foundation of your financial future!