Day: February 25, 2026

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That Starbucks Coffee and finances ☕

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It seems like in the personal finance guru world there are two schools of thought:

  • A five dollar cup of coffee bought every week day adds up over a year and decades, money that could be better allocated towards saving and investing. In addition, it gets you in the habit of spending money that you don’t need to spend.
  • A five dollar cup of coffee doesn’t matter much, a $1,300 yearly purchase is pretty inconsequential and it gives you an allowance while focusing on cutting bigger costs.

I’m more inclined to agree with the former. But I don’t get much joy out of drinking coffee. I do drink a cup with breakfast but I’ve been trying to cut back and reuse grounds and reheat coffee whenever possible with higher coffee prices.

I guess if coffee really gives you pleasure but for me it’s more of just a drug, a crutch in the morning one that I could probably live without. But the thing is it’s not hard to make myself, I can compost the grounds and I reuse my mug and I have used the same camp stove top percolator for years.

I agree spend money on things you care about, but paper cups soon discarded and a hot cup of Joe isn’t on that list for me. And getting into the habit of being frugal on little things can add up and teach lessons on being frugal for the bigger things.

“Protect your investment”

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I have been looking around a car insurance quotes for when I get my big pickup truck. I am focusing getting insurance to protect my assets from liability and catastrophic loss after an crash (such as totaling a new vehicle within a few years).

Today, I saw a insurance ad that advertised “protect[ing] your investment“.

That triggered me on so many levels, as an automobile is not an investment but a consumption item. Maybe a car is an pricey item, but it something you buy to get enjoyment out of temporarily, use it up, then send to scrap yard and ultimately the landfill. I do blame marketers, especially who foist advertising for financed automobiles and extended warranties as furthering the public’s confusion between the two. Also, it is a terrible way to buy insurance – which should focus on preventing catastrophic loss – not pain.

Google Gemini AI often has excellent summaries of concepts.

In simple terms, an investment is an asset you buy today with the expectation that it will grow in value or generate income in the future. Unlike a regular purchase (consumption) where you spend money for immediate use, investing is about putting your resources—such as money, time, or effort—to work to create a greater benefit later. 

In economics and personal finance, a consumption purchase is the acquisition of goods and services for current utility or immediate satisfaction. Unlike an investment, which is intended to grow in value or generate future income, consumption is generally “used up” or depreciates over time.