Daily Latte Will Stunt Your Growth

Tony Barnes By Tony Barnes, 11th May 2015 | Follow this author | RSS Feed | Short URL http://nut.bz/2wf8ftwn/
Posted in Wikinut>Money>Investing

Young people carry their $5 cups of boutique coffee and yet, I have to wonder if they ever think about how that daily latte is stunting their growth.

Cup of Joe

I can remember my father complaining to someone about a local diner charging a dollar for coffee. He was born just before World War II and was accustomed to a cup of coffee maybe costing a quarter or maybe even 50 cents. Before he passed away, I remember him being amazed at how people would go to Starbucks and pay $4 or $5 for a coffee based drink. All his life he had drank coffee that was black with no additives. His discerning tastes could even tell if he came to my house and I tried to slip him decaffeinated coffee. He could tell the difference. But, he wasn’t about to spend $5 for a coffee drink.

Like my father, I am a bit amazed at the Starbucks and Seattle’s Best phenomenon. I am still content to have a McDonald’s cup of coffee that weighs in at less than two dollars a cup. And, even then I don’t buy coffee except maybe a few times a month. I want to conserve my funds so I can have an enhanced lifestyle when the time comes for me to retire. As Dave Ramsey says, “I want to live like no one else so that later I can live like no one else.”

But, I see young people frequently with their lattes, cappuccinos and bizarre ‘fufu’ drinks that I wouldn’t’ even know how to order. They seem to get them almost every single day. Let’s just suppose for a moment that each one is $5 (after tipping) and that they buy them 15 days out of the month. That is $75 a month and $900 a year. Multiply that by an expected 40 years of a person’s life spent working. Over the course of their life, they have spent $36,000 on special drinks.

Unfortunately, many young people only live for the moment and don’t take into consideration what a lifetime of indulgences can mean to their financial future. Later in life, a person who has risen in their career can afford luxuries like $5 drinks each day. However, when you are only working for $10 or $15 an hour as a young adult, there are far more creative things you can do with your money to help secure a very comfortable life.

Imagine if a person were to drink $2 beverages and invest the other $40 or so per month over the course of that 40 year work period. Something tells me that $18k in principal would be worth far more even with a conservative mutual fund. But, the challenge is getting young people to think that far down the road. I am always telling people in their 20s to think like a 30 year old. People in their 30s need to think like a 40 year old. If we all use this approach to living our life, we will be more conservative with our money and set ourselves up for a great future.

I heard one of Dave Ramsey’s daughters joke that being his daughter you were never, ever allowed to super size in the McDonald’s drive-thru without a lecture on how much that 30 cents could earn compounded over 40 years. I am not in favor of being that extreme. I just think that most young people really can’t afford to drink $5 drinks on a routine basis without regretting it a few decades down the road when they aren’t living anywhere near the lifestyle they had dreamed of in their early years.

In the meantime, I may make another pot of drip coffee that will cost me just a few cents a cup. I do that nearly every morning. With a travel mug for my commute, I can rest easy knowing I am not stunting the growth of my financial portfolio by needlessly drinking expensive ‘fufu’ drinks.

Tags

Cappuccino Fufu, Latte, Mcdonalds, Seattles Best, Starbucks

Meet the author

author avatar Tony Barnes
I am a native Texan who spent 3 years in the Marine Corps Reserves and 25 years on active duty in the Air Force. I have been a Christian since 1985 and am an ordained minister. I am conservative politically and love to study history. I publish a mont...(more)

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Comments

author avatar Retired
11th May 2015 (#)

I can't stand milky coffee - which is presumably what a latte is, although I've never had one. As it gets cooler it forms a skin on top, which then sticks to your lips - horrible!

It would never cross my mind to pay a tip in a coffee shop - that's one way of keeping the cost down!

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author avatar Tony Barnes
13th May 2015 (#)

At Starbucks they have the tip jars in a very prominent place.

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author avatar n.c.radomes
15th Jun 2015 (#)

I am convinced this piece is a great lesson to ponder about thrift and the effect of coffee and other non-essentials in one's life.

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author avatar Tony Barnes
27th Jun 2015 (#)

Thanks n.c.

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