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Friday, April 18, 2014

Stuff to Avoid: Starbucks

This is a lifestyle change.

In economics, there is a principle that states most people make decisions on the margin.

When It comes to making a single decision without too much importance a person will give very little thought to making the decision.

You need to get something to eat for lunch, you get a combo at Burger King. You spend the $6.50. Everything is alright.

However, if you do this every day, you will spend $2372.50 a year on Burger King (365*6.50).

My econ professor made the analogy of drinking beers. You are fine at 3 so you have another. You are fine at 6 so you decide to have one more. But by the time you get to the 14 or 15, you aren't quite sure if the next one is going to make you throw up.


I really love coffee. I can't live without the stuff.
I drink my coffee black. No sugar. The correct way to drink coffee.

Not many people do this, not even people from older generations. For which, I am really surprised.
But I would encourage more people to do so.

Because, for a man like me, Starbucks is overpriced.


By this, I mean that Starbucks coffee is way overpriced.

I'd say that most people that get coffee from Starbucks would order an espresso, frappuccino, latte, or cappuccino.

From Starbuck's website, a Hazelnut Frappuccino (16oz) contains 390 calories and costs probably 3 dollars plus.

One day, every now and then is fine. But, if it is a man's MO to get a expensive coffee at Starbucks every day, the annual cost of coffee will total  $1095.

To be a little more realistic, lets pretend that man only gets a drink at Starbucks before work each morning. The cost of expensive coffee per year totals $780.


In contrast, what I would recommend, instead of Starbucks, is getting coffee from McDonalds.
Small, medium, or large, coffee is one dollar at McDonalds (as of 4-18-14).
As an extra bonus, if you drink coffee without cream or sugar, a cup of black coffee only has about 5 calories.

Annual cost of coffee $365 (every day).
Annual cost of coffee $260 (before workdays only).

Assuming that you buy a cup of coffee every day, annual savings on coffee by switching from Starbucks to McDonalds: $520 to $730.

Of course, you could save more money by forgoing coffee all together (I never would).
Of course, you could save more money by brewing your own coffee at home.

But, I love coffee, and I've never been able to get the same quality coffee from brewing at home than you can get from a restaurant.

Now, I recommend not getting coffee from Starbucks. Even if you order plain black coffee from Starbucks, coffee still costs at least $1.85 to $2. And, it tastes awful compared McDonald's coffee.


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