Kicking that caffeine hit can result in significant savings

Nearly 12 months ago coffee and I broke up for good. I decided enough was enough. I was blowing little bits of money day in, day out. This is why I did it and what it’s saved me.

Nearly 12 months ago I called it quits.

Coffee and I broke up, for good.

I decided enough was enough. I was blowing little bits of money day in, day out on something I soon learned I could live very quickly without.

It all started with trying to be healthy in February — many of us jump on the Feb Fast bandwagon.

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I decided something I would be better off in more ways than one without a caffeine hit.

I did the sums to work out roughly what I was wasting on getting a caffeine kick every working day.

Depending on where I’d buy my skinny latte, costs could range anywhere between $3 and $4 a day.

And it would be a purchase I’d only ever make while I was at work.

It seemed to be a social thing, grab a coffee with a colleague at the cafe downstairs and before you know it we are buying each other one.

While this probably evens out in the long run, I calculated I was blowing about $780 a year on caffeine. That’s five coffees a week at $3 a pop.

But prices fluctuate so I could spend up to $20 a week if I’d pay $4 per cup. So in a year there goes $1040.

Getting that regular caffeine kick comes at a cost.

Mind you, I was lucky enough not to get a headache each day because I wasn’t get my daily caffeine hit.

It’s leakage spending and many of us are guilty of this.

I worked out if I shoved this money into my home loan it could make a massive difference.

Data from financial comparison site RateCity shows that on a $300,000 home loan, if a coffee addict shoved $780 a year into their mortgage they could save more than $19,600 in interest charges and cut two years off the life of the loan.

Or if they’re buying more expensive coffees and spend about $1040 a year, on the same loan they could save more than $25,300 and cut three years and one month off the life of the loan.

Some of you may think giving up coffee is the end of the world. It’s not for everyone.

As a substitute I buy a box of 100 peppermint tea bags, have them at my desk and available at any time. They last me months and cost about $8.

I also noticed since ditching coffee if I took $20 out of the ATM it would sit in my purse untouched for days.

No coffee costs. This too is because I pack a cut lunch.

The new year is the perfect time to review any of your incidental costs that you could reduce.

For some it might be cutting that caffeine kick each day.

@sophieelsworth

Originally published as Kicking that caffeine hit can result in significant savings