In the pursuit of financial freedom, many individuals seek to cut down on unnecessary expenses to save money. One common target that often comes under scrutiny is the daily coffee ritual, particularly when it involves purchasing from popular chains like Starbucks and Dunkin. However, contrary to popular belief, buying coffee out everyday does not inherently hinder your journey to financial freedom.

In today’s newsletter, I’ll debunk the myth that many finance experts love to repeat - “Your daily coffee routine is what’s keeping you from financial success”

1. It’s all about budgeting

2. Understanding the value

3. Making trade-offs

Important Reminders:

• Everyone has things they value. If that happens to be coffee from a local shop, great! The person attempting to lecture you more than likely spends money on something you find silly.

• While you should be prepared to make some sacrifices to achieve financial freedom, it is important to enjoy the present.

• I like to think about my financial journey like I’m playing a sport. You practice almost everyday, but it’s only 3 hours of your whole day. If you practiced your sport all day, you would more than likely get burned out and grow to resent it. This is similar to pursuing financial freedom. It’s important to be aware of your spending, but do not let it take over your life.

It's all about budgeting

• The key to financial freedom lies in effective budgeting. Budgeting is a powerful tool that allows you to allocate your income towards different categories, including discretionary spending like coffee!

• By creating a comprehensive budget, you gain control over your finances, enabling you to make conscious choices about your spending habits.

• When you include your daily coffee order in your budget, you allocate a specific amount for it, ensuring that it doesn't become an uncontrolled expense that hinders your financial progress.

Understanding the value

• Coffee, for many people, is more than just a beverage; it's a ritual and a source of joy. The value derived from a daily cup of coffee goes beyond its taste or caffeine content. It can be a moment of relaxation, an opportunity to socialize, or even a productivity booster.

• By acknowledging the value it brings to your life, you can better prioritize your spending and adjust other areas of your budget to accommodate it.

Making trade-offs

• Financial freedom doesn't require complete deprivation of all enjoyable experiences. It does require you to make conscious choices and find the right balance between spending and saving.

• If you consider your daily coffee order a non-negotiable expense, you can identify other areas where you can cut back without feeling deprived.

• Reducing your expenses could include: less eating out, reducing subscription services, or learning how to cook cheap healthy meals.

• By making trade-offs in other areas, you can ensure that your daily coffee habit doesn't sabotage your financial goals.

Wrap Up

Achieving financial freedom is not about depriving yourself of small pleasures, but rather about creating a balanced financial life. Buying coffee out everyday does not inherently prevent you from reaching your financial goals. Remember, the key lies in budgeting wisely, aligning your spending with your priorities, and proactively managing your finances to create a sustainable and fulfilling financial future.

If you are unsure of how to put together a budget, you’ll want to check out next week’s post on the steps I take to put together a realistic budget! Be sure you are subscribed so you don’t miss it! If you know anyone who’s interested in retiring early or could use a weekly newsletter about personal finance, share the link below.

Keep pursuing your financial dreams and enjoy that daily coffee!

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