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

[zabindya]

...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 )

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.

Really? Is every single coffee you buy a "networking opportunity"?

Or are you just telling yourself that to try and justify why you don't need to cut back?

“ I don't want to turn down the chance to network because of a £3 latte”

You aren’t getting the odd £3 latte though. On average you are spending almost £12 every working day on coffee which is insane and I don’t really understand how you do it. A pret latte is £3.25 which means you’re getting 3, sometimes 4 a day, and every day of the month.

You could still get a coffee a day and spend 1/3 of that. Or get the pret subscription. There is zero chance you aren’t very close to a pret working in the city.

Why not go to one a day and see how that works out for you.

Maybe it IS worth £3k a year though if you get promoted faster due to networking.

Is it really network with someone who could meaningfully assist your career in the direction you want to go? Would £3k be better spent elsewhere on your career of that's really the motive?

Eco is in, why not get a flask and a refillable cup and suggest a walk rather than a shop to sit in?

If you are repaying a percentage on your loans then those coffers cost more than £3 per time when you look at how much interest you will save.

In any case, surely £250 a month could be a nice night away, go toward hair extensions, spa, an experience? Depends what you value spending money on X

We had a similar coffee habit and it was a shock when we saw it.

We got ourselves a very posh coffee machine so we can have more home made ones. Yes it was expensive but near our annual coffee spend.

We've reduced take away to once a month only as that was getting out of hand too.

We do still have take away coffee but nowhere near as often. It's my one little treat as I don't drink or smoke or go out lol.

I take a thermos of coffee into work. It also helps me limit my caffeine intake. We have an aeropress which is quick to use.

If going for a coffee is a social event then view it as fun money. If it is a work expense, then can work pay for it? If not then consider it part of the cost of working - like you would the cost of getting to/from work.

I was finding that I would go to Starbucks out of habit. I would also find that it became habit to get a coffee after doing a class at the health club.

I would allocate the cost of getting a coffee to a category based on why you went. Cut out the times you go due to habit. Replace it with something else - going home for a nice coffee instead.

The Automatic Millionaire book has the Latte Factor - it is one of those small costs which can quickly add up. You need a balance though to enjoy life. If you have a lot of debt, then focus on paying it off. Once it is paid off then you can spend more on things you enjoy.

You’ve worked hard to get where you are and probably lead quite a stressful life so need your treats ! I spent similar when I used to work and got annoyed at myself at the time, I get now that I needed my daily perks so don’t to be to hard on yourself and like a pp said that peer subscription sounds like a good idea !

Surely you would have earned a few free coffees on your coffee shop loyalty cards by now?

Are there planned networking events in your industry? Maybe attend those and drop a few coffees to save cash. I'd rather spend £3000 saved on coffees paying my debt off faster.

Have you considered supplementing your income to raise funds for networking? Selling old stuff on vinted, car boot sales etc? Any money you make can go towards socialising and use the 5% saved to build up savings and pay off debts.

I used to grab a coffee in the morning from Starbucks at the drive though after the school run. I'd grab DP one and ended up about £6.50/£7 a go. Didn't think much of it at all if it was only 3 times a week or something but it was ending up about £100 a month on coffee! Wild. Make coffee at home now 😂

I agree with those saying buy a coffee machine!

If it's about networking then firstly be brutally honest with yourself about whether all the coffees you have are worth having from a networking point of view (maybe they are; I can't judge). Secondly, could you save a bit by having, or sometimes having, a different drink (say, an Americano rather than a Latte, or even a tea)?

I used to spend loads when younger on takeaway coffees, breakfast and lunch. Now I only buy a coffee if I'm meeting someone or I didn't have an opportunity to bring one in.

Once you see what you're doing, it's easy to change. Plus these days there's no judgment about BYO, you claim you're a coffee snob or looking after the environment by not using disposable cups.

@RantyAunty

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

Cut way back and pay off debt.

I was going to say the same. DH and I added up our alcohol consumption just before Christmas and it came to about £250 a month (this is without going out as often as we used to due to covid!). So we cut that down dramatically. Literally pissing it down the drain.

I do think taking regular reviews of spending and making adjustments is just sensible management!

I voted you are not being unreasonable, thought that was (you are right thats too much too spend) Anyho take a flask or cut down, your nerves and teeth will love you

How many coffees a day are you buying that it works out at £250 a month?

YABU- challenge yourself to no bought coffees or takeaways for a month and track your spending (many banks have an app showing how much you spend on what). You'll be surprised how much you can save once a treat becomes a habit it is costly!

You have an addiction.

Treat it like one.

Nothing is stopping you from going to these places with people and not buying anything.

Set out some rules to stick to

Only join for coffee if it’s a really opportunity to network, which will also save you time

Sort through each place you go for the cheaper coffee. There is a big difference in price between a flat white in Starbucks to a medium latte with oat milk & syrup or a regular filter coffee comes in at £1.75 instead of a fancy lattes at £3.75 therefore you could easily save £1.25 + each visit depending on your drink

When I was paying off debt I signed up for a shopping receipt survey that paid in luncheon vouchers, which I used in coffee shops.

But the pret deal is brilliant and if I were back in the office I'd have signed up to that.

£250 on coffee is far too much. They must love you in the coffee shop though!

My online banking app offers an impulse saver. The idea being that you add the coffee spend to a savings pot instead of buying it. Could something like that work for you? So you see some benefit from cutting down? You could target something else to buy with the coffee savings? It sounds like your debt plan is working so rather than adding it to the debt a treat of some sort might help you with cutting down.

@jay55

When I was paying off debt I signed up for a shopping receipt survey that paid in luncheon vouchers, which I used in coffee shops.

But the pret deal is brilliant and if I were back in the office I'd have signed up to that.

Yes the Pret deal is good if you drink that much.

I got a coffee subscription from local shop so the ground coffee arrives every 2 weeks for 6m. For £60. £60 is around three weeks of take away flat whites (£2.80 a go).

Spend the money on the debt. Then plough it into a pension.

Sounds like an insane waste of hard earned money to me especially if you are trying to save for a deposit.

Have you seen the one cup filters in tesco. Good cup of real coffee, 35 cent qpprox.
I have it when i get to work.