Although I feel the reference is a bit dated (which means I’ve been a financial blogger for way too long now), there was a symbol of financial responsibility/frugality – the expensive coffee drink purchases on a little too frequent of a basis. The thinking was that little splurges that occur fairly often could really add up and detract from your personal financial progress. The mantra was to implore young professionals to make coffee at home, pack a lunch or other little things in life to help them keep their budget in check and to save more money for savings or investment goals that they may have. 

I actually did a post WAY back in the day on this topic and I talked about how I had a budget and the budget required me to make difficult choices and that in an effort to achieve my financial goals at the time, I was saying no to lattes. Fast forward 8 years, although I still agree with the sentiment, I’ve actually decided to lighten up a bit and semi-frequently get a latte! Funny though as now lattes cost more like $5 instead of just $3 – probably slow but steady inflation over the years! Let’s explore what changed my mind and how I spend my money a bit differently. 

Make adjustments as needed

Back in 2013 when I first wrote that post, I was about a year into my first post-college job and was very thankful to have landed one! The pay was good enough and I was able to make headway towards my financial goals. At the time I was saving up for an engagement ring, trying to build my emergency fund, and trying to invest in my retirement account. Outside of that I didn’t have a lot of extra room in my budget, and so I tried to be as responsible as I could be. I brought a PB&J almost every day for lunch to save $5-$10 on eating out, I parked offsite to save $2/day vs. the office garage and I always made my coffee at home (hence skipping the lattes). At the time, it was really important for me to achieve my financial goals of building up my emergency fund and saving, and I was willing to sacrifice to achieve them!

Fast forward to today, I still have financial goals but my the financial foundation I laid early on is still there and supports me. I’ve got a well-stocked emergency fund, Mrs. Money and I are saving nearly 15% each for retirement, and out debt is at a controllable level (just our house right now). Whenever my income grows (whether promotions or raises at work), I try to not let my lifestyle grow at that same rate and split the additional between extra saving/investing and then spending. As such over the years, yes my saving/investing rate has increased (it peaked around 33% and fell once we had BabyMoneyFinance), but also my spendable money that I allot for myself each month has grown too. 

Don’t be too stuck in your ways, including your financial ways. I’ve realized that I’m not a fresh out of college young professional and that my financial situation allowed me the occasional latte! Just because I never did something in the past doesn’t mean that I need to stick to that forever! 

Learn to celebrate your progress

We work so hard in our regular 9-5 job, and many of us work hard beyond that; whether with family, a side hustle or second job, or just remaining active on our communities. Within that, many of us are also trying hard to remain financially responsible and work towards whatever financial goals we’ve set for ourselves. Many of us say have to say ‘no’ to things we know we can’t afford or that we don’t have room for in our budget (a budget is just a tool to help you remember when to say ‘no’, so you can say ‘yes’ to other things). 

One of the things that I’ve been reflecting on recently it the importance of celebrating your progress, no matter how much progress it is. If you get too focused on achieving your goals, sometimes that sacrifices you’re making on a daily basis can start to feel like a little too much. If you’re constantly saying ‘no’ to things that pop up in your life, I personally have sometimes felt like giving up or feeling like I’ve hit my limit and make an impulse purchase that I regret later on. I’ve found that one way to combat this risk of reaching your limit is to have small celebrations all throughout your journey. As I actually called out in the 2013 post, it’s not the latte that’s the problem, it’s going over your budget that is. But hey, in light of celebrating the small victories, if a daily latte keeps you going, keeps you focused, and aren’t breaking your budget, go for it! 

Spend money in a meaningful way 

Looking back in the 10 or so years of being a young professional, I’ve earned a lot of money, but I’ve also spent a lot of money. 10 years of eating out, grocery store runs, vacations, gifts, movies, clothes, new toys, and everything else I’ve spent my money on. I don’t really remember most of what I’ve bought, and many items that I spent way too long dreaming of or buying on impulse, I don’t end up remembering. Well perhaps if I find an old receipt or when I take old items to donate to a thrift store, but aside from that I don’t remember them.

What I do remember is the quality time I spent with friends and family. Perhaps it was a memorable birthday dinner out, or maybe that trip to the beach. Things will fade but memories last forever, which is why I’m a believer in spending my money on memories, not things! Bringing this full circle back to lattes, I do really enjoy them and find that the $5 I spend on one helps definitely make my morning a little better, makes my day a little better, and it’s something that I look forward to the night before getting. I believe that $5 spent on a latte is a quality $5 spent!

Summary

Just because I never bought expensive coffee back when I was starting out as a young professional doesn’t mean I shouldn’t now. I’ve grown and matured in my personal finances and now have a little extra wiggle room for the occasional latte (or whatever else may pop up). Buying a latte is something that brings me happiness and it’s something I get quality enjoyment out of. All that to say, I still don’t get them on a daily basis – just a weekly one! It’s become my Friday tradition during COVID and one that I really enjoy!