Little things add up fast

BillR · #1 (**permalink**) 06-29-2007, 11:04 AM

Next time a person who's trying to improve their finances tells you that little things don't add up - point them at this post.

Just as an exercise in personal finance I've recently undergone some changes to the daily routine just in the form of daily beverages. These are things I purchase at the cafeteria in the building I'm currently consulting in.

Now, at this point I can afford to drink these things either way - but still I was pretty damn impressed when I did the math.

Here was the old routine:

3 cups of Caribou (similar to Starbucks) coffee @ $2 = $6
3 20 oz diet cokes @ $1.25 = $3.75

Daily total = $9.75

New routine:
3 cups of the "local" coffee @ $0.95 = $2.85
2 24oz diet coke (bought in bulk at the grocery) @ $0.46 = $0.94
(as as side note - I can't tell the difference in the coffee)

Daily total = $3.79

Daily improvement = $5.96

20 working days/mo = monthly improvement of $119.20

And just for fun = X 12 for yearly improvement = $1,430.40

I knew it would add up but I didn't expect it to be THAT much.

Jim R · #2 (**permalink**) 06-29-2007, 01:36 PM

We have started to do this type of math too. I am going to start to buy my pop in bulk or else just try to cut back. It adds up really fast, especially the bar...

mwgr5 · #3 (**permalink**) 07-02-2007, 12:11 AM

Little thinks really do add up. I believe the term for this is the lathe factor.

Mark A · #4 (**permalink**) 07-02-2007, 12:23 AM

mwgr5, expand on the lathe factor, why is it called that?

katharina · #5 (**permalink**) 07-02-2007, 06:22 PM

Quote:

Originally Posted by BillR

Next time a person who's trying to improve their finances tells you that little things don't add up - point them at this post.

Interesting, Bill... very true, and thank you for posting this. Have you considered brewing coffee at home to save that $2.85 a day... $57 a month, and $684 a year for further savings? You'd have to take out the cost of the actual coffee, but electricity would just be pennies. Granted, not as impressive, but that $57 a month should pay a phone bill, yes?

BillR · #6 (**permalink**) 07-05-2007, 01:30 AM

Quote:

Originally Posted by katharina

Interesting, Bill... very true, and thank you for posting this. Have you considered brewing coffee at home to save that $2.85 a day... $57 a month, and $684 a year for further savings? You'd have to take out the cost of the actual coffee, but electricity would just be pennies. Granted, not as impressive, but that $57 a month should pay a phone bill, yes?

Time is money - in my case I'm better off not spending the 20 minutes waiting for the coffee to brew and going to work instead. I'm currently billing $151.50/hr - or roughly $50.50 every 20 minutes.

qyuan · #7 (**permalink**) 07-05-2007, 03:12 PM

You need also figure in the investment profits that can be generated out of it.

tater03 · #8 (**permalink**) 07-05-2007, 05:31 PM

That is so true. We did that awhile back for a few things that we were spending money on and could not believe how much we were spending that we really could be saving.

katharina · #9 (**permalink**) 07-06-2007, 09:01 AM

Quote:

Originally Posted by BillR

Time is money - in my case I'm better off not spending the 20 minutes waiting for the coffee to brew and going to work instead. I'm currently billing $151.50/hr - or roughly $50.50 every 20 minutes.

Ah, you must be fast in the morning.

I fill the pot and filter the night before and the coffee brews while I'm showering and getting dressed. No time wasted waiting for it.

BillR · #10 (**permalink**) 07-07-2007, 05:26 PM

Quote:

Originally Posted by katharina

Ah, you must be fast in the morning.

I fill the pot and filter the night before and the coffee brews while I'm showering and getting dressed. No time wasted waiting for it.

I don't even eat breakfast at my house - I bring it with and eat it while I'm at the customer site while I'm checking my job-specific email account at my customer site.

Moriarty · #11 (**permalink**) 09-03-2007, 11:41 AM

Since I've started sort of tracking what I spend, I noticed that too. I thought I was spending WAY less than I actually was... I have no idea how I was getting by with all this spending, really :P

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