29 May 08 Coffee

Now, if you’re a regular reader here at The Eye, you’ll know I love my morning coffee. However, I almost always make that coffee in my own kitchen, even on the days when I’m working away from home.

Unlike me, many people get their daily fix from the local coffee shop, and it’s costing them thousands. If you’re one of those people, then read on.

Here’s the math: someone spending $1.80 on a regular coffee every day (let alone the fancy cappuccinos) is handing over $468 for the luxury every year. When compound interest of 7% is taken into account, this would amount to a total of $8,648 over 10 years, $25,661 over 20 years and $59,127 over 30 years.

If a 35-year-old were to put all the money they spend on coffee into their pension fund instead, at 65 they would receive $3,843 more in their pension every year for the rest of their life.

Now, are you still going to Starbucks for another cup?

Tags: 10 years, cappuccinos, coffee shop, compound interest, math, money, morning coffee, pension growth, pension pot, price of coffee, retirement fund, starbucks