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I think this article misses the point. The daily coffee isn't the only problem with people's spending, but is representative of all the small daily spends that

I think this article misses the point. The daily coffee isn't the only problem with people's spending, but is representative of all the small daily spends that add up without people realising. It's the petrol in your car when you could've walked, it's the extra bar of chocolate that you add to your lunch, it's the daily newspaper you buy. Everything adds up very quickly and the coffee is just one example

switch007 8y ago
I've recently stopped buying takeaway coffee. This led me also to think about non-essential Amazon/eBay purchases, how frequently I pop to the shops without planning etc. I also refreshed my monthly budget spreadsheet and cut some other expenses I didn't need.
nytesky 8y ago
That’s the authors point. Unless you are an extreme outlier and buying a LOT of small purchase (like to the point you don’t have time to work), they really are meaningless. The big fixed items in your budget really drive everything, housing, medical, education, which have all far outstripped inflation. And the income has remained flat for most people (save tech workers who get great coffee for free).
- deleted 8y ago
  [deleted]
- esotericn 8y ago
  Unclear to me that this is the case. Here in London, at least at the low end, it is extremely easy to spend more on entertainment than it is on basic living costs. That goes double if you're sharing a flat rather than renting alone. A room might be 600pm. Spending 20 quid a day just means a coffee, lunch, dinner out or takeaway. You can double your expenditure by just not preparing your own food.
- GuB-42 8y ago
  Sure, the big fixed items drive everything, but they are the baseline. Saving on housing is hard, and saving on medical and education is more or less impossible. If you have, say, a $3000/month income, resulting in a $2000/month budget and you need $1000/month expense just to survive, that's $1000/month expendable. A $5/day latte ends up as 15% of that budget, that it is 5% of your income is irrelevant because you don't have access to these $2000. 7 of these "small" expenses and you are left with nothing. No extra money for a nice car, a more comfortable home, holiday trips, etc...
  - yellow_postit 8y ago
    Not sure savings on those fixed costs are as impossible as you make them out to be, rather they may take substantially more effort than the "skip a coffee" line. Housing -- do more with less. How many people buy houses (or cars) beyond their means or bigger in size than needed? Health -- daily movement is a life long commitment (as is finding time for sleep) and has outsized long term health benefits. No this doesn't address the "hit by a bus" scenario, but in terms of some of the most prevalent chronic health conditions it's amazing ROI. Education -- while there is an undeniable tyranny of geographical circumstances, being able to evaluate using community colleges for prereqs, considering alternatives like trade schools, and taking into account expected lifetime earnings for career path all can play into this fixed expense.
- asdff 8y ago
  Most people can't do nearly so much about the big fixed costs vs. small daily indulgences.
mywittyname 8y ago
That's literally the point of the article -- the prices on the things we want are going down, while the prices of the things we need keep climbing. That $5 coffee will still be $5 in 10 years, but housing, healthcare, insurance, etc will all have gone up dramatically. All of these latte and avocado toast articles are a failure to acknowledge this fact and blame the economic victims.
sisu2019 8y ago
> Everything adds up very quickly and the coffee is just one example Exactly. It's kind of painful to see that the author of the article is simply not mentally equipped to have this conversation yet they have a blog and enough pull (in whatever form) to get this on the HN front page.

switch007 8y ago

I've recently stopped buying takeaway coffee. This led me also to think about non-essential Amazon/eBay purchases, how frequently I pop to the shops without planning etc. I also refreshed my monthly budget spreadsheet and cut some other expenses I didn't need.

nytesky 8y ago

That’s the authors point. Unless you are an extreme outlier and buying a LOT of small purchase (like to the point you don’t have time to work), they really are meaningless. The big fixed items in your budget really drive everything, housing, medical, education, which have all far outstripped inflation. And the income has remained flat for most people (save tech workers who get great coffee for free).

deleted 8y ago
[deleted]
esotericn 8y ago
Unclear to me that this is the case. Here in London, at least at the low end, it is extremely easy to spend more on entertainment than it is on basic living costs. That goes double if you're sharing a flat rather than renting alone. A room might be 600pm. Spending 20 quid a day just means a coffee, lunch, dinner out or takeaway. You can double your expenditure by just not preparing your own food.
GuB-42 8y ago
Sure, the big fixed items drive everything, but they are the baseline. Saving on housing is hard, and saving on medical and education is more or less impossible. If you have, say, a $3000/month income, resulting in a $2000/month budget and you need $1000/month expense just to survive, that's $1000/month expendable. A $5/day latte ends up as 15% of that budget, that it is 5% of your income is irrelevant because you don't have access to these $2000. 7 of these "small" expenses and you are left with nothing. No extra money for a nice car, a more comfortable home, holiday trips, etc...
- yellow_postit 8y ago
  Not sure savings on those fixed costs are as impossible as you make them out to be, rather they may take substantially more effort than the "skip a coffee" line. Housing -- do more with less. How many people buy houses (or cars) beyond their means or bigger in size than needed? Health -- daily movement is a life long commitment (as is finding time for sleep) and has outsized long term health benefits. No this doesn't address the "hit by a bus" scenario, but in terms of some of the most prevalent chronic health conditions it's amazing ROI. Education -- while there is an undeniable tyranny of geographical circumstances, being able to evaluate using community colleges for prereqs, considering alternatives like trade schools, and taking into account expected lifetime earnings for career path all can play into this fixed expense.
asdff 8y ago
Most people can't do nearly so much about the big fixed costs vs. small daily indulgences.

mywittyname 8y ago

That's literally the point of the article -- the prices on the things we want are going down, while the prices of the things we need keep climbing. That $5 coffee will still be $5 in 10 years, but housing, healthcare, insurance, etc will all have gone up dramatically. All of these latte and avocado toast articles are a failure to acknowledge this fact and blame the economic victims.

sisu2019 8y ago

> Everything adds up very quickly and the coffee is just one example Exactly. It's kind of painful to see that the author of the article is simply not mentally equipped to have this conversation yet they have a blog and enough pull (in whatever form) to get this on the HN front page.