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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To spend 5% of my take-home income on coffee instead of debt...

174 replies

zabindya · 23/02/2022 05:21

...if that amount comes to £250 a month, or £3,000 a year?

I'm not sure which is the more honest way to look at it. Just did my accounts and got a shock at how much I'm spending. I always thought "stop buying lattes so you can afford a house!!" was an out-of-touch boomer thing to say, but now I'm wondering if they were right...!

My income has increased massively over the last couple years, after a lot of investment on my part including significant student debt and private loans. On one hand 5% seems small, on the other hand £3k seems very meaningful! (And I probably spend a similar amount again on delivery/takeaway...) I'm struggling to adjust to how to think about these big numbers compared to what I'm used to. Any suggestions? (Bracing myself for responses Grin)

OP posts:
Gladioli23 · 23/02/2022 05:25

£250 a month on coffee (and indeed 5% of take home) sounds like quite

Gladioli23 · 23/02/2022 05:27

Sorry posted too soon.

£250 a month on coffee (and indeed 5% of take home) sounds like quite a lot to me honestly - plus the same on takeaways. That's over £50 a week on each one - I think I'd struggle to justify spending £8 a day on coffee. Do you have the ability to get a decent home set up as surely you would have a pretty quick ROI if you're spending that much?

actiongirl1978 · 23/02/2022 05:29

Wow.
I probably did the same in my 20s working in the city.

Now we have a lovely gaggia coffee machine and between two of us spend £12 a week on Pact coffee which comes in the post for our lovely homemade flat whites.

So I think you probably ABU but equally its your choice.

Wouldn't a better investment be a coffee machine and then save the cash or invest it?

Whingasaurus · 23/02/2022 05:31

Take care of the pennies and the pounds take care of themselves.

marqueses · 23/02/2022 05:33

What kind of suggestion are you after other than buy fewer coffees and takeaways Confused

I'm sure you don't need anyone to tell you that as you are in a job that pays that amount.

ThinWomansBrain · 23/02/2022 05:39

Have you got a pret conveniently close to you? Their £20 monthly subscription would be a cheaper option.

I rent a hotdesk space with superb free coffee & hot chocolate for less than half that Grin

ufucoffee · 23/02/2022 05:40

That's crazy. How have you only just realised they are expensive? I buy one coffee a week as a treat and it's only £1.35 but I still feel very extravagant buying it.

Sunbird24 · 23/02/2022 05:49

£3k a year on coffees is a lot, imagine all the other lovely things you could do with that! Second the suggestion of investing in a good coffee machine and posh travel mug and making your own. Even if you could half the amount you buy out you’d be saving a nice sum every month

TheWayTheLightFalls · 23/02/2022 05:50

after a lot of investment on my part including significant student debt and private loans

I know you mean it in a different way but these investments, especially the latter, are debts which require repayment. And if the latter incurs interest I’d be minded to pay it down with some of your coffee money.

Zonder · 23/02/2022 05:52

How many coffees a day do you buy? Do you ever make coffee at home?

Our home coffee tastes so much better than most bought coffees and a fraction of the price.

custardbear · 23/02/2022 05:54

So you're buying 2-3 coffees a day?
I'd personally not spend that on coffee, but I guess my vice is wine, other peoples are cigarettes...what's the difference, I guess it's just how we get through

NumberTheory · 23/02/2022 05:55

You're unlikely to be able to buy a house saving 3k a year. But if you're spending 5% of your take home on coffee, you probably have a lot more discretionary spending you could also cut and that could make a difference.

On a take home salary of over 60k, you are the sort of person the "stop buying lattes and avocado toast" advice could actually work for.

Doesn't make you unreasonable to choose lattes instead unless you spend any of your time moaning about not being able to afford a house.

PearPickingPorky · 23/02/2022 05:56

Another one saying buy a proper coffee machine.

50 Wood a week on coffee is ridiculous.

MiddleParking · 23/02/2022 05:57

How much coffee are you drinking?! I’ve got heartburn just thinking about it.

RosesforTea · 23/02/2022 05:57

@zabindya I buy at least one take-away coffee a day when at work. I’m not sure what it adds up to, but I only do it as I already own a home (with a mortgage) and have a salary where I have left over money each week.

When I was younger, in my 20s with student education debt and a lower starting salary and no house/assets, I made a take away coffee a once a week treat, as it should be. I saved, paid off debt, got a deposit, advanced in my career and have now earnt the money to waste on things I like - takeaway coffee in the morning being one of them.

I’d strongly suggest throwing your coffee and takeaway money at debt and then housing in the same way. A higher income isn’t guaranteed.

RantyAunty · 23/02/2022 06:03

Those bits here and there really add up over time.
Same with alcohol.

Cut way back and pay off debt.

Original poster
zabindya · 23/02/2022 06:11

Haha, obviously I definitely should spend less on coffee. Actually the reason I checked in the first place was that I realised how many daily shots of coffee I was having and had a heart attack about that, so I think my immediate solution will be to just cut back on coffee overall!

If I'm looking for advice, maybe it's something along the lines of how do you know when lifestyle inflation is properly becoming a problem?

I have a 2-year plan to pay off my loans which so far I'm on track to do (using the other 95% of my salary). 5k a year would help me pay it a couple months faster. But working in the City there are so many things you need to do to keep up. Brunches, drinks, coffees... I don't want to turn down the chance to network because of a £3 latte, which would have seemed ridiculously expensive to me before. But equally the same logic applies to spending £3k on a ski trip with the same people, so where does it end?

OP posts:
Ponoka7 · 23/02/2022 06:16

I'd go through all of your spending. If you are spending 10% of your income on coffee and takeaways, then cut back a percentage from each, or the one that you want the least. There's probably a lot of things that you could cut down on, it's deciding on what you can live without. Life shouldn't be without some pleasures.

Grantingmum · 23/02/2022 06:19

I understand where you're coming from. I used to live in London when I was younger and earned a good wage. But the socialising and keeping up with people who could afford it, earned mega bucks was crippling me.
You have to learn to live within your means I'm afraid. It's ok to say no and that you can't afford it (and invite them around for dinner at yours instead, rather than a fancy meal out for example).
But cutting out the coffees is a good place to start (or at least just have them only in social situations, eg, a coffee with a mate, not by yourself).

User8721643839 · 23/02/2022 06:22

@ThinWomansBrain

Have you got a pret conveniently close to you? Their £20 monthly subscription would be a cheaper option.

I rent a hotdesk space with superb free coffee & hot chocolate for less than half that Grin

It's just gone up to £25 a month...🤷
Whingasaurus · 23/02/2022 06:23

Also you're not spending 10% of disposable income more 15%. To spend £3 grand you need to earn 4,200 pay tax and NI. If you have loans make it a priority to pay those off.

meditrina · 23/02/2022 06:26

If you are paying £3 forna networking opportunity, that's pribabkymwirth it.

But be ruthless about deciding what is a real business/career opportunity, and what's just a chat wupitk mates.

Also, you say you've been investing. Do you really mean that, in that younare putting some money aside into your own savings? Or do you simply mean that part of your income is routinely spent on servicing debt?

Because I don't think the weasel wording of politicians, who say investing when they mean spending, is terribly useful. It's only investment if you gave something to show for it over the longer term (savings or items with enduring resale value)

Lunar27 · 23/02/2022 06:26

@marqueses

What kind of suggestion are you after other than buy fewer coffees and takeaways Confused

I'm sure you don't need anyone to tell you that as you are in a job that pays that amount.

Unfortunately people do need to be told. Not being funny about the OP but it's really common for people to pour money into things that aren't in their best interests.

@zabindya
There's rightly a lot of criticism of people who claim you can save a deposit on a house but ultimately there's a huge positive in living relatively lean and saving money. £3k pa is huge and combined with other stuff like takeaways could take you up to £5k. Over time that might not be a deposit but still a nice chunk of savings.

Our daughter was like this but she bought a coffee pod machine and is saving a small fortune.

GnomeDePlume · 23/02/2022 06:27

It sounds like you havent adjusted to your new, higher, income. Have you started planning your savings? Are you saving for a pension?

Your higher income brings lots of opportunities but they will not materialise if your discretionary spending is absorbing a lot of the extra.

Something which benefits me is going through my spending every few days. I also forecast my spending for the coming months. This really helps me to set savings goals.

5% of your income is a large proportion. Are you getting £3k worth of enjoyment from that spending? Once you factor in waiting time for delivered takeaways are they genuinely quicker than cooking?

The problem is that both of these easily become habit rather than treat.

One of the big pieces of advice I gave DD1 when she went off to uni was not to get into a Costa habit. I heard her give the same piece of advice to DD2 when she was getting ready to go.

linerforlife · 23/02/2022 06:27

If going out for coffee is part of your working networking approach then you could always look at having a cheaper and healthier option. Hot water and lemon is usually free in brunch style places and you could go for a fruit plate or granola over avo on toast. A latte in costa is about £2.60 - a tea including green tea or fruit tea is £1.60. Your waistline would probably thank you as much as your wallet!