Those penny pinching types just love telling us how life’s little pleasures can add up to cost us a small fortune or prevent us from realising our financial goals, like home ownership.
So apologies in advance for sharing this interesting factoid with you.
But according to AMP, your morning coffee is adding 154 minutes a day to your mortgage.
Here’s how they explain it. Let’s assume you pay $4 a day for your coffee then you’d spend $1460 a year on your caffeine hit, which, if otherwise directed to extra repayments on the average Aussie loan of $376,200, at an interest rate of 4.9 per cent, would save you $31,000 in interest over a 25 year loan.
Got that? Good. So what?
Well, that interest saving equates to paying off your home loan two years and five months early, or 154 minutes per coffee.
So should you give up coffee to own your home sooner? We’re not financial advisers, so don’t take our word for it. But we think it’s important to buy a home that meets your lifestyle and your budget. That way you can have your home and your coffee… and even that smashed avocado.