Moneywise24 Personal Finance

I found myself in a typical situation yesterday, one that I have been trying to avoid since 2009. I was going over my checking account balance, and discovered a missing 100 Euro amount. Something wasn’t right, I felt like someone had stolen it.

I took a good look at my finances, and found an incredible amount of 100 Euro booked to the category ‘to go products’; I use this category for all unnecessary food and beverage items, which are bought quickly when I am going from A to B. Back in 2009, I just bought an item when I felt like it. I might have bought a coffee to go, even knowing that I’d be home in 2 minutes. I still do it every now and then, but usually only in the morning on my way to work, knowing that I’ll be traveling for an hour or so. But now, 100 Euros extra! An yes, having taken a quick glimpse in my ‘to go products’ category, I find the criminal: Starbucks.

I have to admit one thing though: Starbucks has launched a great and unique concept. They actually manage to sell qualitative, but overly-priced food and beverages. I am not sure about pricing in the States, but at Starbucks a muffin costs nearly as much as a sandwich at the bakery store. And I know a muffin will only compensate for that hungry feeling for 30 minutes or so. Still, their concept is so good, that it keeps drawing me inside when I pass. Yes, the frappuchinos are great, and so is the white coffee mocca, although I don’t want to know how many calories are in there.

As a rule of thumb, I always eat something when I go to the supermarket; it prevents me from buying all that food that I don’t need, and I can’t eat it all before it goes bad anyway. Now, I have to eat and drink before I leave the house, because Starbucks is waiting for me around the corner.

My action for change: every time I think about buying something at Starbucks, resist the urge and put 3.50 Euros to the side. When it reaches 100 Euros, invest the money.

Once I think about it… even if I’d spare myself 3 coffees at Starbucks each week, that would be 546 Euros per year that I could invest. At an annual rate of 8%, that is 66,801 Euros in 30 years, or by the time I retire.