Every day, Americans consumer some 400 million cups of coffee. Many of these cups are sold by Starbucks. While most of you probably know that Starbucks is expensive, you probably never realized that it’s actually costing you tens, if not hundreds of thousands of dollars. While ordering a smaller size is an easy way to save money, you could save dramatically more but eliminating Starbucks altogether.
The average cup of Starbucks coffee costs around $3.15. If you’re like other average customers you visit a Starbucks between 6 and 16 times per month. And if you’re really addicted, you probably go more often than that.
Using some simple math, it’s easy to calculate buying coffee costs you between $19 (6 times a month) and $96 (if you go every day) a month. You may be thinking a few hundred dollars a year isn’t that bad. And when you look at it in a vacuum it really may not be. But when you’re trying to find more ways to save money, all of those little purchases add up.
While $3.15 a day may not seem like much, what if I told you that cup really costs $13?
You probably would drink significantly less Starbucks. Well, if you would save that money every month and invest it, then that’s about what each cup costs. The reason each cup ends up costing you so much is due to the power of compounding.
By investing you daily coffee expense in the stock market, the small amount you save begins to grow exponentially over time. Using a simple compound interest formula, it’s easy to see how dramatic the results of skipping your daily brew can really be.
Assuming you invest at a compounding monthly rate of 8%, over 30 years you would be able to save between $28,000 and $143,000! Even skipping one trip a month, adds up to almost $4,700 over 30 years. To many people that amount of money could be the difference between retiring on time or having to work later in life.
All of this assumes you spend $3.15 per coffee. The table below outlines the total savings depending on if you go to Starbucks the average 6 or 16 times a month or every day. If you’re one of those people that opt for the more expensive drinks, the amount you can save will be even higher.
Over 30 years, you would have purchased anywhere from 2,160 to 10,800 cups of coffee. Based on the total savings, the average price per cup is around $13. So next time you think a few dollars a cup isn’t bad, ask yourself if it’s worth $13.
# Times/Month 6 16 30
# Years 30 30 30
Monthly Cost $18.90 $50.40 $95.81
Total Savings $28,167.79 $75,114.12 $142,795.06
Total # Coffees 2,160 5,760 10,800
Cost per Coffee $13.04 $13.04 $13.22
Source: Full Article: https://avgjoefinance.com/surprising-amount-starbucks-costs/