As I’m sure you know, payday loans are a brilliant idea since they only charge a 35-40% APR (annual percentage rate) on top of the service charge. The access to the cash is definitely worth it, even when the interest is higher than most credit cards, because you can’t live without food right?
“They” always tell us to get up and go for a walk and preferably get some fresh air. Well the best way to get this done is to go for 3 coffee breaks a day. Since Starbucks is within walking distance and you do get at least 15 seconds of fresh air, the Grande Vanilla Latte is definitely worth every penny.
On a conservative day you could spend $10 on a lunch and another $10 on your coffee breaks. That’s $20 a day or $100 per work week. So you’re only spending $4,000-$5,000 a year on you lunch. No big deal right? I mean who wants to go on a nice vacation, pay down the mortgage quicker, or pay down some debt?
Hopefully my sarcasm didn’t get to you. There’s a reason why I titled this article “8 Essential Financial Habits to stay Broke.” If you don’t want to be broke, these are essential habits to avoid yet many people have at least a couple of these habits and have no sense or urgency to change anything.
Paying high interest, having too much debt, making impulse purchases, making unnecessary daily purchases, not investing, or taking too much risk with investments are all horrible habits to have. If you have any of these habits, think about how much it is costing you financially because each and every one is killing your financial future.
Let’s take the 3 coffee breaks a day example. I personally love drinking coffee and won’t lie that I drink Starbucks sometimes. I have maybe one specialty drink, such as a Caramel Machiatto, every one or two weeks. So the $4 I spend is divided by either 7 or 14 days, which is $0.29~$0.57 per day which is significantly less than the $10-12 you might be spending on a daily basis. Sure it might keep you sane but if you treat yourself less to these drinks you’ll appreciate them more. I know it isn’t going to be easy to quit outright, so why not start by reducing it to once a day or once every two days. You’ll be surprised by how big of a difference it will make over time.
Let’s say you save an average of $10 per day by packing your own lunch and either brewing your own coffee or opting for the healthier drink, water. That’s roughly $300 per month. Save that for 20 years at a 5% return and you’ll have an extra $123,310.10. I just gave you 123,310 reasons why you should pack your lunch and drink a little less coffee.
If you have any of these habits, drop them now!