It can be quite expensive when you buy coffee from a coffee shop, but when you enjoy a good cup of quality instant coffee you can save a lot of money over the years.
Here are ten reasons that choosing instant coffee is one of the smartest financial decisions that you can make.
1. Money in Your Pocket
The average cost of a cup of coffee from a coffee shop is around $2.75, but if you decide to get a latte or a fancier (more expensive) drink, it really can add up. This is especially true when you compare it to the cost of quality instant coffee which can go for as low as 0.48 cents a cup.
If you were to drink two cups of coffee a day, your coffee shop habit could be between $5.50 to $10.00 a day. Over the course of a week, this adds up to between $38.50 to $70.00 a week. If you look at monthly totals, you could be spending between $165.00 to $300.00 for your coffee habit!!
If you look at the amount that you spend over the course of a year, you may be spending between $2000--$3000 a year... Compared to instant coffee which would be about a dollar per day, $7 a week, $49 a month or $588 for the entire year. The amount of money that you could save over the year could be thousands of dollars, all from just one little change in your spending habits.
Now, you might think that instant coffee simply doesn't taste good enough for you, but if you listen to some coffee professionals, you can find instant coffee brands that taste just like a fresh cup of drip coffee.
2. Use the Extra Money to Pay Off Debt
Cutting the coffee shop habit can help you to get out of debt. If you can pay off your credit you will save on the interest you would spend on your credit cards which will increase the overall savings and free up additional money in your budget to reach your other financial goals. As you decrease the amount you owe on debt, you increase your ability to save money.
3. Save Time and Money on Travel Expenses
Another advantage of choosing to use instant coffee is how much it will save you in travel expenses and time. Stopping in at the shop may not seem like that much time, but the wait in a busy line can be avoided and it can give you more time to sleep in or get into work and get started earlier, so you can head home earlier in the day. As the gas prices continue to rise, you may find yourself needing to cut back on side trips to conserve fuel and cutting out the trip to the coffee shop is an easy way to do that.
4. Build Your Emergency Fund
One of the best things you can do with the money that you save is to build your emergency fund. A fully established emergency fund of three to six months of expenses can give you genuine peace of mind and give you the courage to take the next steps in your life whether it is starting a new business, changing jobs or taking the next step to buy a house. You can get even more money for your emergency fund by opening a savings account that also offers a sign up bonus. It’s amazing to think about how a little change like switching to instant coffee can really have such a positive impact on your life.
5. Invest Your Money
Another way to make a bigger financial impact is to invest your money. If you can invest the $116.00 you save each month at an eight percent return, you can earn extra several thousands of dollars. If you continue down the path, the returns on your investments will continue to grow.
6. The Trickle-Down Effect
One of the best ways to change your situation and your habits is to create keystone habits. These habits influence the way that you do other routine tasks in your life. When you start skipping the coffee shop, you may find that you begin to want to save on other expenses. This one habit can help you become more aware of the way that you are spending money and help you make better financial choices.
7. Save for Something Fun
Saving for something fun can help you to change your habits. These rewards can be earned immediately in the month that you start the habit. Think about what you could do with an extra $116.00 a month. You may want to save it for your dream vacation or reward yourself with a manicure or pedicure each month. If you want you could spend the money on a night out on the town, get a new pair of shoes or buy a few new video games each month.
8. Get Ready for a Big Purchase
As shown above, saving this money can add up quickly and it can help you prepare for your bigger purchases like buying a home or a car. Choosing instant coffee will help to free up extra cash so that you can save up a down payment more quickly. It can also help you find extra room in your budget for a bit higher payment than you initially thought.
9. Pursue Your Dreams
Making wise financial moves can free you up to pursue your dreams. This may be opening your own business, starting a family, retiring early or traveling the world. Although switching to instant coffee may seem like a small step to take, the rewards can really add up. As you focus on what you want to achieve, it becomes easier to make wise financial choices and still enjoy the good things in life.
10. Reward Yourself, Not the Coffee Shop
It is important to think about this as rewarding yourself and not the shop. When you make wise financial decisions, you are giving yourself the opportunity to do the things that you want to with your money. Whether it is helping you get back on track financially by tackling your debt or preparing for a big purchase like a house, you are giving back to yourself by choosing to drink instant coffee.