Impact of Forgoing Daily Coffee and Saving the Money: An Examination
Gone are the days of a humble £2 coffee; these days it's more like £4 or even £5 you'll be parting ways with in some towns! Experts predict this trend is here to stay, and we might be sipping £5 brews as the norm within just three years.
If you've been hearing about cutting back on takeaway coffees as a way to save some coins, this advice sure holds weight! Flagstone (a pretty smart financial platform) has run the numbers and discovered that the average Joe spends £3.40 per day on takeaway coffees, which equates to a jaw-dropping £102 a month!
Imagine if you could divert that cash into a savings account earning an impressive 4.5% interest annually? After five years, that £102 a month could add up to a whopping £6,849! You know what they say, compound interest is truly the eighth wonder of the world, as Albert Einstein himself put it.
So, if you can manage without your daily caffeine fix, the money saved could work wonders for your savings account. But wait, there's more! Let's say you're also forking out quite a bit on regular nights out - an average of £317 a month, according to Flagstone. That's quite the black hole in your finances! If you were to redirect that cash into a savings account, it would grow to a staggering £21,285 over five years!
Now, let's talk about cleaning costs. While hiring cleaners can free up your time, it's getting pretty pricey, with an average monthly cost creeping up to £150. If you could scrimp on this by doing a bit more housework yourself, the savings could earn you an extra £10,072 after five years, if you compound it at 4.5% interest.
What about the money you spend on meal kits, meal deals, and takeaways? If you're dishing out £237 on average each month, putting that cash into a high-interest savings account would save you a whopping £15,914 over five years, assuming a 4.5% interest rate!
There's plenty more where that came from: cancelling subscriptions like Disney+, Amazon Prime, Audible, and Apple TV could save you between £536 and £537 over five years. When you consider all these expenses, you could save an impressive £76,479 over five years if you placed those savings into a 4.5% interest savings account.
So, while skipping those coffees, cutting back on nights out, and doing some extra housework might not seem like much, the impact on your savings could be substantial! Happy saving! 💰💸
- If you were to redirect the money saved from cutting out daily takeaway coffees (£102 monthly) and reducing nights out (£317 monthly), both earning an impressive 4.5% interest annually, the total savings over five years would amount to £35,134.
- Besides the savings from altering coffee and nightlife habits, trimming cleaning costs (£150 monthly) and cutting down on meal kits, meal deals, and takeaways (£237 monthly) could further boost your savings account by an additional £30,986 after five years.
- Moreover, if you choose to cancel unnecessary subscriptions like Disney+, Amazon Prime, Audible, and Apple TV, saving £536 over five years, and invest the money wisely at a 4.5% interest rate, your savings would amount to an additional £5,366 over this period.
