Annualizing Your Spending: The Key to Financial Freedom

Gaining an understanding of how much money you spend a year and how much you actually make will be enlightening.
Annualizing Your Spending: The Key to Financial Freedom
It's good to have an understanding of your annual spending. sogane/Shutterstock
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Most of us prefer to think of spending money in ways that don’t make us cringe. I suppose that’s only natural. If we could truly see how every little purchase adds up in the grand scheme of things, maybe those “just a little treat” splurges wouldn’t feel quite so harmless.

Take a page from Howard Schultz’s book—literally. In “Pour Your Heart Into It,” the Starbucks founder noted that the average Starbucks customer used to drop $3.50 per visit and show up 18 times a month. Fast-forward to 2024, and those numbers have shifted where the average customer spends about $5 per visit and shows up around 16 times a month. Now, I’m pretty sure these folks think of that as a series of harmless $5 coffee dates rather than a $960-a-year relationship with their barista. But, oh, how those little indulgences do add up when you’re not looking.

Mary Hunt
Mary Hunt
Author
Mary invites you to visit her at EverydayCheapskate.com, where this column is archived complete with links and resources for all recommended products and services. Mary invites questions and comments at https://www.everydaycheapskate.com/contact/, “Ask Mary.” This column will answer questions of general interest, but letters cannot be answered individually. Mary Hunt is the founder of EverydayCheapskate.com, a frugal living blog, and the author of the book “Debt-Proof Living.” COPYRIGHT 2022 CREATORS.COM
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