Do You Drink Starbucks Daily?

There have been articles debating whether spending $5 a day buying a cup of Starbucks coffee or saving that money is a better way to wealth creation. You can read them, here, here and here.

The debate is that if you are spending $5 each day on coffee, you are spending about $100 per month (assuming you are only buying coffee on weekdays during work).

Those who are against spending on coffee, argues that if you save these $100, and invest it well. It could be worth thousands of dollars in future.

While those who are for spending on coffee, argues that it is such a small sum and drinking that coffee gives them a certain quality of life.

Well, they are both valid in their argument, and in the post, I would like to give my perspective and hopefully put this matter to rest once and for all.

Does It Bring Joy?

Firstly, I will state that Money is meant to be spent for your enjoyment. So the 1st question is, citing Ms Kondo,

“Does It Spark Joy?”.

Marie Kondo

To me, joy is travelling and gain new experiences hence I am always willing to spend on my travels. I will often spend more to go on crazy tours and stay at nice hotels.

So what is your “JOY”?

If you truly enjoy that cup of Starbucks coffee each day, it invigorates you like nothing else then please go ahead and spend that $5. Don’t think about it too much

Is There A Cheaper Alternative?

Now that you have spent $5 on Starbucks coffee, as you savour the warm cup of caffeinated bliss, you may contemplate about the next question.

“Is There A Cheaper Alternative?”

Now, the cheaper alternative must produce similar effects. For example, does it bring you a similar amount of joy? If I were to block out the brand or logo of a Green Mermaid, will you be able to tell the difference?

To me, whisky is my poison. I enjoy a good whisky every now and then. Many may associate good whisky with a hefty price tag.

However, me and my buddies did an experiment once. We blind-tasted several whiskies and realised that we could not reliably differentiate a cheap whisky from an expensive one!

Furthermore, the cheaper whisky are actually pretty tasty as well. So instead of spending $200 on a bottle of whisky, I will often pick a cheaper alternative costing $80 that brings me similar amount of joy.

In this case, I get a similar level of enjoyment at a lower cost.

Can You Cut Spending Elsewhere?

However some readers said:

What if I only find satisfaction in Starbucks coffee and nowhere else?

If your palate is really that sensitive, then you may still continue to have your daily dose of Starbucks. However, you want to fund your Starbucks coffee by cutting spending elsewhere.

Everyone finds joy in different experiences. While I enjoy travelling, you may enjoy coffee. So if you could cut back on travelling, one overseas trip could easily fund a year’s worth of coffee!

Spend Your Money Accordingly

Therefore, it is not about wasting money on Starbucks coffee. It is about spending your money accordingly. Spend it according to what brings you joy. Find cheaper alternative if possible. Cut back on your spending in other areas to fund it.

There is no point saving all the money in the world and die a wealthy but miserable person. However, it is also not wise to spend your wealth for current enjoyment and invest nothing for the future.

So what do you think? Will you cutback on your coffee spending? Or coffee sparks joy in you? Comment below!

If you want more ideas on personal finance, you can read my other post.