The Coffee Myth

Have you heard that if you skip coffee you can save $3,000 a year? 

I'm sure you have. This is the theory that eliminating something seemingly small a day can add up to a large savings. However, this is a flawed theory. Not necessarily in the savings part but in WHAT you are eliminating. What may be essential to someone may not be to someone else. So, the list of what needs to change in their life to get them financially healthy would be completely different.

Take fictional character Tom. Tom is a 35-year old work out addict. He doesn't really like going out on the weekends and prefers to spend his money on doing outdoorsy things. Tom spends $3,000 a year on trips and workout equipment.

Take fictional character Paul. Paul is a 25-year old entrepreneur. Paul needs coffee. Paul prefers to spend his money on coffee and netflix than on gym equipment. Paul spends $3,00 a year on things to wind him up (coffee) and relax him (netflix).

Tom and Paul both spend $3,000 a year on something that they deem essential in their life. They would look at each other's lifestyle and be able to ruthlessly cut things that they don't agree with. 

Save your time, energy, and other people's input and deem what is essential in your own life. Cut down things that aren't essential so you can spend more money on things that bring you true pleasure. This may not look like your spouse's or your friends or your neighbors budget. Everyone should be able to spend their guilt-free income as they wish.

Are you spending money on items that bring you joy? Or are you filling it with non-essentials?