FinanceCents.com

Yes, we all know you coffee addicts can’t do without your daily cup of “nourishment”. But when coffee, and coffee alone, is setting you back enough to buy a top-end coffee machine every year, you ought to be relooking how you drink your coffee.

A $6 cup every workday for the entire year (261 weekdays) sets you back:

$6 per cup x 5 days x 52 weeks a year = $1560.00 expenditure on coffee

Now if you were you drink $0.60 coffee from your local kopitiam instead, you’re going to save:

$5.40 per cup x 5 days x 52 weeks a year = $1,404.00 savings!

At 0.25%p.a. interest, you will need to place $561,600 in POSB for 1 year just to earn back what you spent on coffee alone. And if you don’t spend it on coffee, then you get to buy your own Krups Pod Coffee Machine with the savings you get! Which will, in turn, save you money (not to mention time queuing up to buy coffee) in the long run if you’re a heavy coffee drinker. And that’s the best investment :)

Some habits are good but some are just plain painful for your financial health. And this isn’t about coffee but about all the choices we make in life, especially purchases.

Here’s a saying in one of the Channel 8 dramas by Chow Chu Ming which goes, “sedikit sedikit lama lama jadi bukit”. What this means is this: little by little, over time it will form a hill.

These savings in the initial years is the best form of investment.

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