As a CERTIFIED FINANCIAL PLANNER® professional, I used to feel guilty about buying a $6.63 Grande Pumpkin Spice Latte in the fall. Why? Because in the financial planning industry, we often preach: “Skip Starbucks, make coffee at home, and invest the difference — you’ll thank yourself later.”
Is that logic valid? Absolutely. Small expenses, when invested over time, can add up to big numbers.
But here’s the truth: even as a CFP®, I still enjoy the occasional pumpkin spice latte. And the way I removed the guilt was simple — I set a coffee budget. Each month, I give myself a set amount to spend on coffee. Once it’s gone, it’s gone. But until then, I can sip guilt-free.
Let’s run the numbers:
- Buying a latte every day for 30 years could cost you about $72,598.50. If instead you invested that daily amount annually at a 7% return, it could grow to $228,590.38. That’s serious retirement money.
- Now, if you budget $50 per month for coffee, that’s $600 per year. Invested annually over 30 years at 7%, it could grow to $56,676.47. Still a meaningful sum.
So, is that $50/month “worth it”? Here’s where the real planning comes in. By spending on something that brings you joy, you’re investing in what I like to call your “joy wealth.” You’re also giving yourself “freedom wealth” — knowing the expense is budgeted for, so you can enjoy it guilt-free.
The bigger message? Financial planning isn’t about eliminating every small indulgence. It’s about awareness, intentionality, and balance. If you set a budget and stick to it, you can reach your long-term goals and still enjoy life’s simple pleasures — whether that’s a latte in the fall, a night out with friends, or a family vacation.
Because money isn’t just about retirement. It’s also about enjoying the journey along the way.
Carly J. Wieland is non-registered affiliate of Cetera Wealth Services, LLC.
The situations depicted here are hypothetical only, and do not represent the actual performance of any particular investment or strategy. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.
