Is a daily trip to Starbucks a regular part of your day? 

According to various statistics, a typical Starbucks customer makes 6-8 visits per month, with some of the most loyal customers making up to 18 visits each month.  While you can walk out of the store with a basic cup of coffee for $1.40, admit it, you like the specialty drinks and that "Tall" cup just isn't enough.  As you were driving away from the store or walking back to the office with your coffee in hand, did you ever stop to think what this daily ritual is costing you?

While I won't qualify as a "typical" Starbuck customer since I probably don't purchase more than 2 coffees a month, I have to admit that I am partial to the White Chocolate Mocha (hold the whipped cream), but if you consider yourself a "most loyal customer", it's time for a little intervention.

For this discussion I'll use my favorite drink and assume you purchased the medium cup (aka "Grande").  Cost $3.75.

First the simple math:  18 coffees x $3.75 = $67.50/month ($810/year). 

Assuming you remain healthy, don't hit the lottery and work the length of a typical American, 45 years, you will shell out about $36,450, and that assumes the price per cup never increases and doesn't include sales tax either.

So how do I get to $350,000? 

What if you invested that $67.50/month in an stock index fund, 401(k), IRA or other similar savings vehicle.  Although the last few years have been tough, on average, the stock market has produced an average 10% over a 20-year period since 1900. 

Given the skeptical response I'm sure you have to that statistic, I curbed my analysis back to 8%/year.  But note: a 10% return would turn those daily cups of coffee into a $700,000 lifetime cost.

If you are reading this blog over your morning cup of Starbucks, enjoy every last sip now that you know what it is really costing you.

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