There seems to be a common post amongst the personal finance blogsphere about the latte factor. The basis of the post is that you should cut out your morning lattes immediately, as they cost you too much. It then goes on to say that over time, these little expenses add up to quite a lot of money.
Now, I appreciate that little spends over and over add up to lots. And if you got a latte from a well known coffee chain each morning plus a croissant or other breakfast-y item, then it would cost you. If that is approx. £4 a day, which isn’t too much a stretch, then that’s £20 a week/£80 month/£960 a year approximately. Suddenly not so little, right?
However, I disagree with the posts about it. Although the principle behind it is fine, the overall point about takeaway coffee, for me, doesn’t work quite so well.
Firstly, little things don’t make biggest impact when it come to your budget. Sure, if you had breakfast out every morning, then that it itself isn’t a little thing anyway. This would be a different kind of conversation, though, depending on your budget there could still be room for that. However, a coffee once a week? Quite little. Probably accounts for 1% of the budget. Hardly going to make a big impact if you suddenly cut them out.
Secondly, there are lots of bigger items in your budget could go first, if needed. If you need to make your budget work better, then something that accounts for 1% of your budget, if not less, is not the thing to focus on. Things like gas/electricity, house insurance, car insurance, life insurance, grocery budgets, almost anything else could be cut down more significantly. All these things could make a big, more sustaining impact on your budget that a latte ever could.
Thirdly, there is enjoyment to be had in the little things. Humans beings are predisposed to want to enjoy things. Wouldn’t life be so dull if nothing was for enjoyment purposes only? I love going to a coffee shop and having that little time out with a nice coffee. In fact, I think that food and drink items would be one of the last things to be cut from my budget, if I’m entirely honest. I don’t go very often, but when I do I very much enjoy it. I shared this on Instagram yesterday, but this is a cortado I had out with a friend, and it was delicious! £2.35 well spent 🙂
Finally, we all deserve treats! Life is tough, frustrating, tiring and hard. We all deserve little things that get us through. Something that makes you smile. Something that makes you sit and relax and something that you enjoy. We all deserve that, no matter who we are.
Whilst I’m talking about coffee, I feel like I should confess to something. Something that doesn’t fit in with being a frugal, money saving blogger! But, I own a coffee machine. I love it! It’s a pod coffee machine and I use it often. I buy the pods when they’re on offer, or in bulk. My favourites are these and these. But, when Frugal Baby has been up a lot during the night and I feel so tired to get through the day, a cup of coffee first thing just gives me that little lift. And I’m not worried about that!
So, I honestly don’t think you should be worrying about the latte factor. There are so many, bigger expenses in a budget that should be taken care of first. And if a coffee is your treat, then so be it!
What do you think? Do you agree?
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Katy Stevens says
I often treat myself to something small at shopping or when out, as a well done for saving money on the bigger things. I can’t be doing with having NOTHING nice just to have more money.
Linda says
Being frugal should never mean being miserable. We all need to have the odd treat or the odd spend on a hobby we love, that is what makes life wonderful. Overdoing those spends can cause trouble, but with a sensible budget, the odd treat or new pen/pencil/book or hobby item can breathe life into us.
Miranda says
Yes yes yes THANK YOU! Take-away coffee is one of my only but daily treats. I don’t spoke, hardly drink/ go out out so why cann’t I spend my money on something that brings me joy. Love this post 🙂
Miranda says
Smoke not spoke :/
Jack says
I am reminded of the 7 Habits / Franklin Covey example of tackling the big things first, since the small things will fill up all the rest of your time. Focusing on the big money items first will give you the biggest return on your time investment.
weenie says
I think the coffee thing is probably critical for people who claim that they are unable to save any money whatsoever, without realising where all their money is going. However, cutting down on expensive coffee is only one aspect – as you say, reducing costs on bigger stuff, eg utility bills, unwanted subscriptions etc is likely to make a bigger impact.
I’m of the belief that there should be no ‘sacrifices’ on the journey to FI or early retirement – you still have to live and enjoy life. If good coffee is something you enjoy, then go for it (note, I’m not a coffee drinker!)
Karena says
I can’t agree that little things don’t count. £4 on a coffee and croissant is not 1% of my budget -it is around 12% of my weekly food budget for two of us and it is from this budget that a cup of coffee in town would have to come. My other outgoings are already pared to an absolute minimum and mostly fixed, so it is really only the food budget where I have any opportunity to make an adjustment, albeit a very small one. These little adjustments are what buy small, occasional treats such as a lipstick.
Lesley says
As with many things in life, it depends. If you are a person who buys a coffee most days, you may well buy many other similarly low priced items, then wonder where all the cash went.
For me, encouraging people to spend mindfully is the point. Have a coffee, don’t have a coffee, I don’t mind, just be aware of where your money goes so you get to choose the destination of your cash
Maria | passion fruit, paws and peonies says
Urgh thank you so much for saying this. This last 6 months we’ve had to shave our expenditure here there and everywhere! I feel so guilty buying a coffee now. One every now and them won’t sink the boat! x
Nicola says
Don’t feel guilty! We all need little things to keep us going 🙂
Emma says
I totally agree! I think the key is not doing it all the time and getting into that habit but I think it’s a pretty cheap way to give yourself a little boost or treat if you need it. Totally agree that there are way better ways of saving money!
Nicola says
I agree – not something to do everyday otherwise it becomes expensive.
Suzie @ Cinnamon Sunrise says
Oh man, I totally agree with this. The odd coffee here and there doesn’t make anything like as much difference as say… living somewhere cheaper! I’ve pretty much always house shared, and not run a car whenever possible… and enjoyed my coffee every now and then 🙂
Nicola says
Definitely – there are so many other things that could make a big impact!
Kim - Raising a Ragamuffin says
I think you make a great point. I very rarely get a chance to go to a coffee shop on my own so it’s always a real treat. Like you said, unless you’re eating breakfast out every day it’s not going to make much difference to your budget.
Nicola says
And we all need treats – I think that’s so important to morale 🙂
ThisTime says
I’d say it’s not so much about the coffee as about what it represents. I treat myself to good chocolate (and eat less of it, because it’s richer) and my partner buys nice coffee. All while living frugally. If the item is a ‘treat’ then skimping to the point where it is no longer enjoyable defeats the point of having it in the first place. But, to me, the latte represents that everyday, wasteful, spending that many people don’t even realise they’re doing. A magazine (£5). Bottled water (£1). Ice creams at the beach (£3 each). One treat (is it really a treat, or more of a habit?) might not make an impact but lots of little things really do add up – it’s just about being aware of spending and considering the cost.
Grace says
The odd coffee is a treat and will be savoured. The daily coffee is a habit and no longer a treat. I limit myself to one coffee shop coffee a week. Usually if I meet up with a friend which adds to the pleasure but sometimes tis because I need to sit and collect my thoughts!
Nicola says
Vey true! I love getting a coffee out; it feels like such a treat.