Personal Financial Problem - Term Paper Example

Personal Financial Problem Saving on Coffee Spending Spending on coffee every working day for a whole year results to using $730 which could easily be saved. This amount will translate to $14,600 after 20 years. One can, therefore, realize this amount during retirement and use if for something else. However, people cannot see saving $2 per day can result to $14,600 after 20 year because they find $2 such a small amount that they cannot save. People have the mentality and tendency to saving big amounts but not a small amount.

Again, 20 years can appear to be such a long time that if one was saving $2 per day, it might become very hard for one to be very patient to wait for 20 years for the amount to accumulate. It is very easy for people to save money on their discretionary costs and use it in their habits like coffee or cigarette. This is because one might see that they are only using few coins to buy coffee. However, if these few coins can be saved for a week or two, they can experience the significance of this saving.

If we can make the calculations of the amount we can save if we dont take coffee per day, and project it for 1 year, 10 years and even 20 years to people, some might change their minds about not taking coffee. Especially, those from large families of around ten people, if you save $20 per day, it results to saving $146,000 after 20 years. One would see that this amount of money is too high and can begin to save. However, to save this amount, one can resort to purchasing alternative beverages that cost less by $2 or more like cappuccino.

We can make people realize that saving after a period makes a huge saving in the end (Lorenzo, 2013). To make people stop taking coffee even if they say they enjoy it, we can make them realize the cost of taking coffee and compare it with the cost of taking another beverage after a period of time (Richard, 2013). Coffee, first of all, is an addictive beverage with caffeine component that is considered a drug. It, therefore, influences peoples behavior as it has an addictive feeling (Tiago, 2014).

However, once one has already begun taking it, it becomes hard for them to stop (Rob, 2013). There are personal problems that such coffee or cigarette addiction bring to us. One will go to an extent of cutting on their budget for basic needs like food to go take coffee. It therefore leads to lack of proper budget planning and following (Scott, Cynthia, & George, 2008).People can also use budgets to help them plan their expenditure. They need to have their financial goals right and put their eyes on the goals to achieve them.

One also needs to put up a fight within themselves that taking coffee is a negative trap for them (Furhman, 2013). They need to tell themselves that the thinking about the trap of coffee isnt right. This is to say that when one uses a budget that cuts down on the purchase of coffee, and follows it strictly, they will adhere to and end up saving their money.For those who take coffee or cigarettes on a daily basis, there could be training activities carried out to teach them on how they can save and how the savings can help them (Rob M. , 2014). The training can inform people on how they can reduce the urge for coffee day by day and save on money.

They can also take coffee on some days and avoid it on various occasions to help them manage their savings. This is to say that, the training is to help one to gradually stop taking coffee and save the money they could have used on coffee, on other things. Alternatively, they can resort to preparing the coffee from their homes and offices to reduce much expenditure that they could incurred to take it from a restaurant. This is another way to save much on coffee. People can also begin saving the money they could have used in coffee little by little and check on how much has been saved by the end of the week.

This way, they will realize how saving little money can add to some significant amount with time, hence the practice can proceed for a whole year. This is to say that, small amounts of money when saved after a long time, becomes some big amount that can be used to do something significant. ReferenceFurhman. (2013). Does Coffee Has Health Benefits? Retrieved from Smart Nutrition, Superior Health: https://www.drfuhrman.com/library/does-coffee-have-health-benefits.aspxLorenzo, E. (2013). How to cut down on Caffeine and Still Enjoy Your Coffee.

Retrieved from Coffee Confidential: http://www.coffeeconfidential.org/health/cut-down-caffeine/Richard, E. (2013). New Online Money Management Tools Worth a Try. Forbes, 1-2.Rob, M. (2014). Top 10 Tips for Managing your Finances. Pennsylvania Treasury, 1-3.Rob, V. D. (2013). Coffee and Health. Article of Havard School of Public Health, 1.Scott, I. R., Cynthia, C., & George, L. (2008). Tightwads and Spendthrifts. Journal of Consumer Research, 34, 768-777.Tiago. (2014, November 25). How to reduce Caffeine on your body.

Retrieved from Coffee and Caffeine: http://coffeefaq.com/site/node/127