The Latte Factor: An Eye-Opener
Money Found in Jeans

By eliminating the small expenses in your life, you can save a ton of money!

How often do you stop by a coffee shop or convenience store for a quick and easy coffee/snack.  Next time you are in class look around and see how many of your peers are proudly holding a Starbucks or Java City cup of joe. Perhaps you are not a coffee drinker.  Well how about a Smart Water bottle, Odwalla bottle, or perhaps an energy drink.  I know it is quick and easy, but how much are they (or you) paying for that convenience?  There is nothing wrong with indulging in a favorite beverage once in a while, but the reality is that these are not treats, they are habits.


The Cost of Convenience:

Lets take a look at how much your favorite beverage is costing you.  Perhaps you routinely grab a medium coffee or energy drink before work starts. Lets say your favorite beverage costs you about $4 after taxes. Lets see how much you are spending on your convenience.  Not in the mood for math? No worries, we’ll do it for you.

·                       $4 a day, 3 days a week, becomes $12 a week.

·                       $12 a week becomes $48 a month.

·                       $48 a month becomes $576 a year!

Sure, it takes a year to all add up, but do you know what you can do with $576?  You can pay your rent for a month, buy your books for a semester, get four new tattoos, or buy Christmas gifts for a family of four.

The point here is that by eliminating a habit you wouldn’t even have thought twice last week, you can save yourself some cash.  The Latte Factor all boils down to convenience (aka happiness) in the end.

When you are living on loans, every dollar that you spend on something non-essential (a Want) could be going to pay those loans down. We are not saying you should stop spending money on things that you like. But by using your common sense and eliminating some of the smaller, frivolous expenses, you can save money and spend it on things that are actually important. All it takes is identifying your Wants Vs. Needs and telling your money where it should be spent.

It’s an easy trade-off; you don’t have to be a rocket scientist to see that.  Even when you’re spending, there’s room to be smart.

It's All about Substituting:

Yes, you can still have your favorite beverage.  There are lots of ways to get your Wants, but this is only after your Needs are covered. You don't have to sacrifice everything you enjoy to save money, you just have to spend more time thinking and planning.  For example if you want a cup of coffee you can get one for 30 Cents a cup.

Living on a Student Budget!

Iced Coffee for 30 Cents a Cup:

This is just an example of how to still get what you Want and not spend all your money.


Page last modified March 10, 2014