By Melissa Tosetti
Fifteen years ago, Paul gave me a beautiful Krupps Coffee Maker for Christmas. I was more than a little heartbroken yesterday when it stopped working. After thorough investigation we came to the conclusion that it was not repairable.
I headed to Target and picked up a nice little Black and Decker 5 Cup Coffee Maker for $16.95. Because I brew just one cup at a time, the smaller size suits me perfectly and I like that it takes up half the space of its predecessor.
If the new coffee maker also lasts 15 years (5,475 days) its price per use will be $.0003. That’s pretty good!
No offense to Starbucks or Peets, but I really do prefer the taste of the coffee I make at home. I get San Francisco Bay brand at Costco for an average of $16 for a three pound bag which typically lasts me a little over two months. It costs me about $.27 a day to keep me caffeinated.
Because I like to crunch numbers for fun, I decided to see how much money I save by brewing my own coffee at home.
If I were to go to Starbucks and get a tall drip coffee, I would pay about $1.65. Since I drink two cups of coffee per day, that’s $3.30. By brewing my own, I save $3.03 a day over buying it at Starbucks.
That’s a savings of $90 a month and $1,080 a year. Multiply that times the lifespan of my last coffee maker (15 years) and the savings comes to $16,200.
If I turned it around and put that $90 a month into an account that earned a humble 3% interest, in 15 years I would have $20,620.
This is not an original concept. Personal finance author, David Bach, made it famous by calling it The Latte Factor. In my case, I’ll call it the Drip Coffee Factor.