Calculating Coffee Costs on Credit

4 Responses

  1. Mand says:

    We splurged last year and bought an espresso machine – it cost $199.00 and was a ‘want’ not a ‘need’ purchase. However – what I have found is that we no longer buy coffee when going out. Ever. I used to buy a coffee at work maybe 3 times per week, at $3.70 per cup. My partner and I also used to buy a coffee when going out, maybe another couple of times per week, at a cost of about $8 per time. This was about $30 per week on cappuccino.
    The thing is, now when I feel like buying a coffee, I think – ‘I can make this much better at home, exactly the way I like it, for almost nothing.’ We grind our own beans fresh, from beans we buy in bulk from a discount store for about $7 per kilo. Our main cost is milk, as I like lattes, but my husband likes it black, so it is mostly my milk costs. I find I am drinking less coffee, but better coffee, and am not buying coffee at all when I go out because I can’t bring myself to pay for it.
    That means our $199.00 coffee machine paid for itself in about a month. We do not have a credit card and pay cash for everything, so we do not have to factor in interest. So even if you go upscale and buy a fancier machine for your coffee, it can still be worth it.

  2. Mand says:

    And I make it low fat, with no sugar. So it is healthier than what I could buy, with fresher beans. And now I apply that mind set to a lot of things – when I want chocolate at work or something like that, I just say no, because I can have better food from home. My husband was a chef, and has taught himself to make sushi, so when other people rush out to buy sushi for lunch, I bring it from home, fresh and with all the things in it that I like, and a lot cheaper.

  3. Carla says:

    Very cool. I am not into mathematics (even simple math like your example) but am old enough and tight enough to know not to constantly buy things like this on credit.

  4. Newlyfrugal says:

    I use a credit card for its cashback rewards. I never pay interest, as I pay in full each month. In the past five years, I have earned over $6,000 in cashback rebates and bonuses. I do not spend these rebates; I roll them into the Lending Club or brokerage accounts.

    If you are disciplined and buy only necessities (gas, groceries, medical/dental bills, utilities, car maintenance, etc), then credit cards are not “evil” per se. However, I agree that many younger people, esp. those in college, do not have the life experience or financial experience to use CCs wisely. When I was in college, professors did not teach me how to manage finances.

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