Coffee – the elixir that metamorphosizes a groggy eye, disoriented stumbling night owl just waking up to a fully functional productive machine!! Each morning your senses are entranced from the whole process. Your nose becomes intoxicated as its brewing. Your mouth becomes drenched as you pour it. Your hands and body heat up as you hold it. Your taste buds thank you as the bitterness touches your tongue. The morning begins looking better as the mug empties, and people wonder why we love it so much, it’s delicious!! It’s like that moment as a kid when your parents encourage you to take the medicine from the doctor’s office, only for you to find out its fruit-flavored – so instead of being a contrarian – you begin asking for more!
Before diving into the investment opportunities for our castle’s top coffee drinkers, let’s take a step into the world of frugality for a moment.
What in the world does frugality actually mean?
- Google defines it as thus: “The quality of being economical with money or food; thriftiness.”
- Duke’s definition – Getting the most value for every dollar you spend!
In other words, by spending money on quality or saving money by deciding against purchasing wants in your life, you end up with more money. Millionaires in America live below their means, it is how they were able to invest and save to build their net worth over the years.
Cheap vs Frugal
Frugal does not mean cheap, with our favorite example of the difference coming in the form of dress shoes. If you buy a new pair of $60 dress shoes every year for 10 years because they wear out, the soles begin to fail, and shining them doesn’t bring them back to their luster, you spend a total of $600 on dress shoes. What if instead, you purchase a high-quality pair for $300 that last for those 10 years? You save $300 dollars and get some great shoes in the meantime.
Being frugal is spending that extra money up front to get the quality product that last longer over its life of use. If you approach life in this way compared to always buying the cheapest option, you will become an owner of many quality items that last you over the long term – helping you become wealthier as you travel our roadmap.
What does frugality have to do with investing?
The number one requirement for investing? Mula!! You need those greenbacks to do your bidding. Frugality leads to more soldiers battling for you in the stock market!
Why should you be frugal?
Options. Check out the options from our friends over at frugal woods. Frugality leads to security and financial stability, two things we recommend to our community of dukes!
Now that we’ve ventured to the world of frugality, let’s head back over to the realm of coffee – specifically its cost.
The Cost of Coffee
The average cost of various coffee drinks at stores in the US:
A nice chart from US News
Heading over to Amazon, you can get a 3 pound bag of coffee (Costco brand) @ $9.66 per pound. A total of $28.99.
How many cups can I brew from one pound?
- 1 pound of coffee = 100 tablespoons of coffee
- 1 cup of coffee = 2 table spoons
- 100 / 2 = 50 cups of coffee per pound
How much can I save by making my coffee at home?
- $135 = $2.70 average * 50 cups at restaurants
- $9.66 = 1 pound of coffee beans which yields 50 cups of coffee
$125 = savings per 50 cups of coffee!!
Buying a grinder lets you buy whole bean coffee, leading to better tasting coffee as you grind it before brewing! This is not a requirement if you don’t buy whole bean coffee.
The auto drip coffee pots are the easiest to use, fastest to brew, and yield fine coffee for those who are not that into maximizing the best taste.
At a cost of $20 dollars, the ROI will be $105 or $90 (if you buy the grinder) after the first pound of coffee. Each pound thereafter leads to $125 you can use towards your journey! We hope this will change the emergency situation those millennials who spend more on coffee than retirement!
Investing doesn’t always mean heading over to a broker to purchase equities or bonds. Investing can be investing as simple as making a decision to DIY. The coffee beans and coffee machines we recommend can be switched out for your favorites. Amazon has many different options -> find the one that is best for you! Buying an expensive espresso machine (if you’re an espresso person) yields enough return that it pays for itself quickly. Buying coffee beans and making your own coffee won’t by itself lead you to financial independence, but it will definitely help a long the way!!
We encourage all Dukes to find opportunities to save by the way of little things, as they add up to more investing moneys for you in your real investment accounts!! Thanks for reading! We hope you enjoy your coffee this morning and have a great week!!