Tis' the pumpkin spice season and no one has been made more aware of that than your wallet.
Sure a coffee here and there — to kick off the long work week or celebrating the close out of one — shouldn't hurt too much. But multiply that by 7 days a week, 52 weeks a year, and that morning pick me up costs you.
How Much is that Iced Coffee Costing You?
According to micro-investing and saving app, Acorns, the average American spends $1,097 on coffee each year. And that number is expected to rise.
We understand that coffee is more than just a beverage. it is a source of energy, a source of comfort, and a way of life. What is made at home can never measure up to the signature drinks offered at your local coffee shop in a matter of minutes. Put best by Renolon founder, Yaqub Mohammad, "The love of coffee transcends all boundaries."
What if that $1,097 went into different investing avenues instead of a temporary caffeine fix? Let's find out.
Iced Coffee Alternatives
Invest in a Bank Account
Not only can you save $1,097 by putting it a savings or money market account, you can get paid to keep it there through compounding interest.
Letting your coffee budget marinate in a Flagship savings account will turn your $1,097 into $1,100.29 in a year. And with the Fed combating inflation with higher rates, your ROI is only going to increase the more coffees you give up and the longer you are willing to give them up for.
Invest in a Certificate of Deposit (CD)
Who would've thought saving would actually by synonymous to turning a profit?
Oh wait, we did.
Similar to putting your money away in a savings account, Certificates of Deposit (CDs) are a great way to make money without lifting a finger. It differs in that rates are higher and you cannot add or take out money as you please. The funds plus accrued interest are locked away for a certain amount of time before you can have access, early removal can result in fees.
$1,097 in a CD with 3.01% APY* for 15 months would get you to $1,138.43 at then end of the term. That's $41.43 more dollars in your pocket (and available to spend on more iced coffee).
Lucky for you, Flagship is here to help you get that $41.43. Check it out.
We're to help you put your money to better use and make understanding your personal finances easy. Contact one of our experienced lenders today about your money making - a.k.a. money making options.