5 Luxuries You Can (Almost...) Purchase With Your Daily Coffee

Getting your daily cuppa - a sign of caffeine addiction or perhaps done instinctively as part of your daily routine?

While spending on your daily cup of coffee may feel more like a necessity than an indulgence, do you know the true cost of your coffee habits? Averaging at S$5.32 a cup, your coffee may set you back by nearly S$159.6 a month or up to S$1973.72 a year.¹ Therefore, with Singaporeans spending approximately S$2600 a year on unplanned expenditures,² it is likely then that your caffeine addiction is contributing towards your unintended expenses. To illustrate the cost of your daily cuppa, we came up with 5 luxuries that you could purchase if you cut back on your expensive coffee habits.

(See "How Much Does It Cost To Live In Singapore 30 Years From Now?")

#1 Dining at Michelin restaurants

Michelin star dining experiences - these are luxuries that we typically reserve for special occasions. However, do you know that your coffee habits could actually allow you to dine at these restaurants on a monthly basis?

For just S$42, you could get a 5 course lunch at a 2-star Michelin restaurant.³ Thus, with four of such meals only setting you back by S$168, these meals could be the same price as your monthly coffee expenditure. Therefore, the opportunity cost of your coffee habits are the weekly experiences of dining at these establishments.

Alternatively, consider indulging in a meal at Joel Robuchon - Singapore's first and only 3-star Michelin restaurant. Operated by an award winning French chef with a total of 33 Michelin stars amongst his restaurants, dining there would definitely be a treat. Moreover, prix fixe meals are offered at the restaurant and cater to different appetites with prices starting from just S$248.⁴ Therefore, with just one less cup of coffee a day, you could then enjoy these indulgencies on a regular basis.

(See "Why Cheapest Isn't The Best (Policy)")

#2 A holiday

Are you deterred by the perceived costs of traveling? But what if your holiday cost less than your daily cuppa?

If Spain is one of your dream destinations then perhaps you would be delighted to know that a 8 days Barcelona trip inclusive of hotel and flights could cost just S$1095.⁵ Setting aside expenses of S$100 a day, your 8 days trip would cost just S$1895 - less than what you spend on your annual coffee expenditure. This means that with one less cup of coffee, your summer vacation could be spent indulging in a feast of tapas and sangrias on the pristine Spanish beaches.

Alternatively, if Europe isn't to your liking, consider traveling to Hokkaido, Japan for just S$1258.⁶ With it proven that experiences provides more satisfaction and longer lasting happiness, wouldn't a holiday provide greater gratification?⁷

(See "5 Amazing Countries You Can (Almost...) Retire With Your CPF")

#3 Designer shoes

Often seen as a symbol of status, shoes have the ability to exude power and authority.⁸

However, while the prices of designer kicks may seem intimidating, you could purchase your dream pair of shoes by cutting back on your coffee expenses. Take for example the classic Christian Louboutin heels, priced at just S$920, these cost less than half of your yearly coffee expenditure.⁹ Alternatively, men could purchase a pair of leather Gucci lace-ups for just S$810.¹⁰

(See "Are Financial Disasters Your Thing? Here's 4 Mistakes You Must Avoid")

#4 Gym membership

If the merciless weather and crowded public gyms are making you dread your next workout, consider indulging in a gym membership. With well-equipped showers, spa facilities and even gym wear provided, you may find yourself looking forward to your next workout session.

Reasonably priced, memberships at these gyms averages between S$100 to S$180.¹¹ Moreover, should you wish to spice up your workout routine, there are also numerous fitness classes offered.¹²

(See "Should Your Insurance Look The Same When You're 25 And 50?")

#5 An endowment plan

Saving for your retirement, a house or your child's education – these are just a few benefits of an endowment plan. Often used as a disciplined way to achieve your financial goals, endowment provides both savings and protection components with a portion of cash values guaranteed upon maturity.

With the rising costs of living, you may require more for your financial obligations in the future. Thus, it is important that you are aware of your finances so as to ensure that you have savings set aside as a contingency plan for any future emergencies. As such, rather than spend S$5 on your daily coffee, wouldn't it be better to start planning for your future instead?

(See "What You Didn't Know About Whole Life Policies")

How FSMOne can help you get on track

Our team of friendly advisers are able to help you review your financial objectives, long term commitments, and offer you investment and insurance advice specific to your needs. If you would like assistance in reviewing your financial and protection portfolio, or simply to get a quote for an insurance plan, you can contact our advisers at advisory@fundsupermart.com.

^{1Source: https://www.numbeo.com/cost-of-living/country_result.jsp?country=Singapore}

^{2Source: http://www.straitstimes.com/business/companies-markets/cost-of-unplanned-spending-26k-a-year}

^{3Source: http://www.shisenhanten.com.sg/}

^{4Source: http://www.rwsentosa.com/Portals/0/RWS%20Revamp/FNB/JRR/Menus-2017/JRR_Apetit-Menu-15July.pdf}

^{5Source: https:/www.expedia.com.sg/}

^{6Source: https://tripzilla.sg/tour/package/74492/5d4n-hokkaido-autumn-plus}

^{7Source: https://www.forbes.com/sites/ilyapozin/2016/03/03/the-secret-to-happiness-spend-money-on-experiences-not-things/#345f0fb939a6}

^{8Source: http://observer.com/2016/02/have-shoes-replaced-bags-as-the-ultimate-status-symbol/}

^{9Source: http://asia.christianlouboutin.com/sg_en/shop/women/decoltish-85-veau-velours-veau-velours.html}

^{10Source: https://www.gucci.com}

^{11Source: http://www.activered.sg/prices.html}

^{12Source: https://guavapass.com/}

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