Caffeine habit

Many of us need a shotof coffee or a cup of tea to get through the day, some of my friends need it even just to help them get out of bed! I’m super caffeine sensitive, so I need it when I have to stay up late or perhaps all night! Well anyway, thanks to Mrs Frugal Prof, as she reminded me of the ‘latte effect’. Fortunately, she is not suggesting to go cold turkey here, but merely brewing your own drink to increase your savings.

Let’s crunch some numbers for fun, to see if this ‘Latte effect’ is real: I’m going to run with anestimate of $5 bought from a vendor vs $1 made yourself for each day of the week. After 10 years the savings (where money is invested and an 8% return is gained), are $22, 246.24 dollars, ouch that’s a very nice used car or perhaps a whole years of frugal living expenses!

Due to compounding, let’s see how this grows over time. At 20 years of brewing your own, you’ll save $71,624.88. At 30 Years it’s $181,227.71 and at 40 years it’s $424,506.55!!

Sorry big name coffee vendors, I really like your drinks and the convenience, but I think I’m going to brew my own!