If you are looking to save money to pay off some debt or save up for something special, then you should read this article on how my wife and I figured out how to save over $1350 a year just on our coffee.
Maybe you want to save some money to pay off some student loans or credit card debt...
Or maybe you are trying to save up for something special like a vacation, new car, or a down payment for a home.
Whatever your reasons, it's never a bad reason to try to save a few dollars.
Not The Latte Factor
Even though this money saving tip is around coffee, it's not the Latte Factor. It's not about giving up something, it's simply about doing what you do differently. Finding an alternative route.
Besides, I'm a big believer in the 80/20 Rule. And the 80/20 Rule is about looking for a few big changes, instead of trying to a do a bunch of small things.
So we believe it's easier to save your money in a few big ways, instead of a doing a hundred little things, to save some money here and there.
How To Save Money With The Keurig
When my wife and I got married, we received an awesome gift from my friend Justin.
We loved the idea of Keurig.
We had cups of Keurig at Macy's while registering for our wedding. While waiting to get my oil change. At the doctors office.
I liked the simplicity of the Keurig. I liked the cup of coffee it delivered.
Until then, I had a 4 Cup Mr. Coffee maker. And it was actually hard to find the smaller filters for it. And the coffee was inconsistent. (Especially if Katherine was making it)
But a problem soon popped up with the Keurig. The boxes of those little K-Cups were expensive.
After buying a few boxes and spending more money then I would have liked, I started to look online for alternatives. I was looking at buying in bulk on Amazon or even joining a Membership program. But ultimately, I couldn't get the cost of a K-Cup down to under $0.80 per cup. Which wasn't that great of money savings even even compared to going out to Starbucks.
See, I typically get a short drip coffee for a $1.75. Then I get a free refill because I'm a Gold Card Member. So two cups of coffee at Starbucks and I'm basically paying the same as I would if I was home. If I got a second refill, then I'm actually ahead.
So what we found was reusable "K-Cups".
Instead of using K-Cups with the coffee already in the "pods", you buy your own coffee and add to the K-cup yourself.
The Money Saved
Something to keep in mind for my wife and I, we spend majority of our time working from home. Being Realtors means we are either in cars to meet clients at their homes, at a home they want to see or at a local coffee shop. When we're not doing those things we are doing paperwork and communicating with our clients from our home office.
On average I drink 3 cups per day. And Katherine drinks 1 -2 cups per day. A cup being 6 - 8 ounces. So really, our 2 cups is just one Tall coffee at Starbucks, which is 12 ounces.
Here's a break down of the money costs and the money savings:
A traditional K-Cup costs about $1 per cup.
As I said earlier, the cheapest I could get it down to was about $0.80 per cup, by buying in bulk.
At the cost of $1 per day and 5 cups per day, you're looking at $1,825 a year.
When buying the reusable K-Cups you can buy your own coffee. So buy bag, can, organic or cheap.
On average, I'd say we spend $9 per bag. Some times it's cheaper because we can get great deals on sales. But to be conservative, I'd say $9 per bag.
A typically bag of coffee is 12 ounces or 340 grams. The average K-Cup is going to be 10 grams of coffee. That means a bag of coffee can produce 34 cups of coffee with the Keurig.
And with 5 cups a day, a bag of coffee lasts a week.
So 52 bags of coffee at $9 per bag = $468.
When buying K-Cups we could be spending $1,825 a year.
By using reusable K-cups we spend about $468 a year.
That is a savings of $1,357 a year!!!
Go For Big Savings
What would you do with an extra $1,357 a year?
Pay off some debt? Save for the down payment? Make an extra mortgage payment?
By the way, if you mortgaged a home for 30 years, for $250,000, at an interest rate of 5.0 percent a year, your payment would be $1,342 a month. One extra payment a year toward the principal amount would save you over $43,000 and allow you to pay off the loan in 25 years rather than 30.
Remember what I said about going for BIG WINS, instead of hundred little things?
That is a BIG WIN!
Article By Darin Persinger
Darin was originally licensed as a real estate agent in 1997 and along with his wife Katherine, who has six years of real estate experience, they focus on helping their neighbors, friends and clients in the Snohomish County area.
P.S. Another BIG WIN is when you are buying or selling real estate -- make sure you have the right real estate agent that is experienced, knowledgeable and creative in getting you the best deal, negotiating tough for you and facilitating your transaction smoothly so you can put MAX Dollars in your pocket.
And that's exactly what Persinger Group does.
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