Tuesday, May 03, 2016
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The Starbucks Effect

February 22, 2016


Dear Doctor:

 

When I coach TMC members about their finances, I often invoke what I refer to as the “Starbucks effect.” It’s a fundamental key to effective money management that helps you to notice where money is leaking out of the system. For example, many people stop at Starbucks on the way to work, buy a cup of coffee of some sort for about five dollars, and then they do the same on the way home.

 

Seems like no big deal, right? Except if you spend ten dollars a day on coffee, five days a week, that adds up to $2500 a year… on coffee.

 

Whether or not you love Starbucks coffee, I think you can easily see that you could have a top shelf coffee maker for under two hundred smackers, and a year’s worth of your favorite coffee for a hundred or two more, which would put over two grand of your hard-earned money back in your pocket, instead of disappearing into the java zone, much to the chagrin of your favorite baristas.

This kind of financial drain is common, and troubleshooting such indiscretions has a profound impact on your bottom line

Read the whole story here...



 

 

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