Starbucks announced that they're raising prices for the first time in two years, by 5 cents a drink. Doesn't really sound like too much, but maybe it's a good time to evaluate how much your Starbucks habit is really costing you.
The average price of a Starbucks Tall Latte is now $2.80, going to be $2.85. Plugging those numbers into the "Benefit of Spending Less" calculator at dinkytown.net (assuming you buy one every work day each month, you'll spend about $63/month), the real cost of that habit is $11,725.00 over 10 years, assuming you had saved and invested the amount instead. Here's the output cut-and-pasted from dinkytown.net:
You could save $11,725 in 10 years.
By spending $63 less per month and investing that amount at 8.50% you could save $11,725 before taxes in 10 years. If you pay taxes on your savings, this amount would be reduced to $9,997 with a combined state and federal marginal tax rate of 35.0%.
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Your input values
| Input Summary | |||
| Monthly savings | $63 | Years to save | 10 |
| Rate of return | 8.50% | Total contributions over 10 years | $7,560 |
| Federal tax rate | 25.0% | State tax rate | 10.0% |
1 comment:
[...] Drink the free office coffee instead of Starbucks. Check here for a post on how much this could save you over 10 years. [...]
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