Coffee is one of the most popular drinks in the world second only to water with an estimated 7.4 billion kilograms of coffee drank worldwide in 2023. As a mum of two young children, I definitely depend on a good cup to keep me going. But I also want to make sure that I don’t overspend. Over the years, I have figured out a system that helps me save money on coffee.
At home, there are many ways to make coffee and still save money. You can use a french press, espresso machine, instant coffee or a pod-based coffee machine. Different types of beans are plentiful and increasingly accessible to us.
As with inflation, the price per unit of coffee sold rose by almost 12% from $13.20 in 2018 to $14.75 in 2023. Though not a lot, we can certainly expect the cost of our coffee habit to increase.
It is still possible to get a good espresso-based coffee on a budget?
How much do people spend on coffee a year?
Let’s compare how much people would spend on coffee.
| Types of Coffee | Machine | Est. cost per cup (without milk) | Cost In first year (machine + 1 cup a day) | Cost in 2nd year | Cost over 5 years (1825 cups) |
| Starbucks | $0 | $3.75 (Pike Place Roast) | $1368 | $1368 | $6843 |
| Drip-brew | $75 | $0.29 | $180 | $106 | $604 |
| Single-serve pod | $60 | $0.95 | $406 | $347 | $1794 |
| Automatic espresso machine with in-built grinder | $550 | $0.25 | $641 | $91 | $1006 |
| Manual espresso machine and grinder | $286 | $0.25 | $377.25 | $91 | $742 |
| Instant freeze-dried coffee | $0 | $0.07 | $25.55 | $25.55 | $127 |
Does making your own coffee save money?
You can save money on coffee by making your own espresso-based coffee at home. A little goes a long way and in the long run, you can accumulate meaningful money. Putting a mere $50 towards an investment can accumulate over $2000 worth of interest. Over 10 years, you can tend up with close to $10 000. That is a tidy sum!
Whatever you save can certainly be put towards sinking funds for a holiday (Disneyland anyone?). It can be nice meal, a birthday gift or a donation to a meaningful cause.
source: caculator.net
Which method of making coffee is the cheapest?
Here is how much you would spend on coffee over over 5 years
| Instant freeze dried coffee | Manual espresso machine with manual grinder | Automatic espresso machine with grinder | Single serve pod brewers | Coffee Shop |
| $127 | $742 | $1006 | $1790 | $6843 |
If you’re looking for an elevated coffee experience on an extremely tight budget with some free time on hand, a manual espresso machine paired with a manual coffee grinder will get you quality coffee at $0.41 a cup. Do take note that this method requires some coffee making skills.
On the other hand, if you’re a time-pressed mum like me and are looking to make espresso-based coffees quickly (perhaps more than once a day), you’re better off footing just $264 more over the course for 5 years for a seamless and fuss-free experience with an automatic espresso machine.
That said, if you have simply no room in your budget for coffee but still need a good espresso, instant freeze dried coffee is the way to go. It’s quick, easy, convenient and cheap.
Step-by-step strategy to make coffee on a budget
- Choose the brewing method that suits your lifestyle AND budget.
- Start small and experiment with different methods to brew your coffee. If you are not sure, you can start with the cheapest. You can also start with 2nd hand machines to get a feel of what you prefer.
- Create a sinking fund to invest in a good quality machine of your choice. Well-built brands can easily last you 5 years. They are worth the investment.
- Buy machine, beans or accessories during discount seasons such as Black Friday and Cyber Monday sales.
- Invest in a to-go, no-spill cup. Look out for double-walled mugs that keep your drinks cold or warm for longer.
- Replace coffee shop drinks with your own barista coffee from home.
- Reduce and eliminate your dependence (if any) on sugary caffeinated coffee shop drinks.
- Enjoy good quality coffee crafted by professional barista occasionally or when meeting up with friends. Something I like to do if I prefer not to have coffee outside that day is to order a slice of cake to share. =)
How much money I have saved on coffee
$7200 over 5 years.
Saving on coffee is one way I save at least $1000 each month. It adds up. With compound interest, we have created a $20 000 emergency fund in one year.
My husband and I love our coffee. My favourites are the Java Chip Frappucino from Starbucks ($6.95) and Dark Chocolate Ice Blended ($7.90) from Coffee Bean and Tea Leaf.
We used to always buy two cups of coffee each time we head out on a weekend. It was nice to have a drink in hand while our kids played at a park. After tracking our expenses, we discovered we unknowingly spent at least $120 – $150 on coffee shop coffees a month. We reflected and realised we enjoyed a good coffee but we didn’t need to have one each time we went out.
We observed the prices of automated espresso machines and after saving up for a year, we got a Delonghi Dinamica for $660 USD ($899 SGD from Tangs) on discount when we had our first born. It was definitely a lifesaver when we were sleep deprived.
Once we got our machine, it was effortless to replace the habit of purchasing coffee from coffee shops with a home-brewed flat white for the road. The machine has lasted us 6 wholesome years! It is still going strong and we have never looked back.
Over the past 5 years, We have saved at least $7200 on coffee just by eliminating our weekend coffee shop habit.
My personal thoughts and experience on saving money on coffee
We have tried different ways of making coffee at home before we were married. I rate them below by ease of use, maintenance, and taste (5 is the best score)
| Ease of Use | Easy to Maintain | Makes good espressos | Overall | |
| French press | 4 | 3 | 2 | ⭐⭐ |
| Portable espresso maker | 3 | 3 | 4 | ⭐⭐ |
| Single-serve drip coffee | 5 | 5 | 3 | ⭐⭐⭐ |
| Single-serve pod brewers | 5 | 5 | 5 | ⭐⭐⭐⭐ |
| Moka pot | 0 | 1 | 3 | ⭐ |
| Cold-brew coffee | 5 | 5 | 1 | ⭐ |
| Automatic espresso machine with integrated electric grinder | 5 | 5 | 5 | ⭐⭐⭐⭐⭐ |
| Instant freeze-dried | 5 | 5 | 4 | ⭐⭐⭐⭐ |
We have tried every single method above. What we enjoyed most is having a seamless bean-to-cup experience with an automatic espresso machine with an integrated electric grinder. It requires the least hands-on brewing. With two young children, we really don’t have the luxury of time to grind beans or clean a manual espresso machine. So a fully integrated, automated system is perfect for us. It is easy to make a flat white for the road. When we feel like something fancy, we froth up some milk and make ourselves some cappuccinos.
our coffee set up at home
We learnt recipes so we enjoy affogatos, spanish latte and kyoto latte all from the comfort of our own home.
My experience with shopping smart for coffee
During discount seasons, we grab the opportunity to buy beans in bulk. When we were on a shoestring budget, we purchased local beans for $15/kg. Sometimes, we enjoy Lavazza beans for $23/kg from Amazon.
I love the flexibility we have as we can make changes anytime we need. This is particularly important for growing families with young children as they often come with high costs such as childcare, diapers, shoes etc.
On estimate, our cost per cup ranges from $0.30 to $0.40. One kilogramme of coffee lasts us usually a month and we have at least 1 cup each a day. It’s a perfect price point for very good quality coffee with very minimal effort.
At the office, there is a shared Nespresso machine and I keep a stash of capsules (my favourite is Shanghai Lungo) for a nice afternoon boost.
Of course, we also enjoy good coffee from excellent baristas like % Arabica when we are outside. However, we know we are patronizing professional baristas for the quality of their craft rather than the sustenance of sweet sugary caffeine treats.
Final takeaway
There is definitely a barista-style espresso coffee setup for every budget – small or big.
If you are starting out with a smaller budget, have instant freeze dried coffees and save up for your dream machine. On the other hand, with time on your hands, you can go manual and invest in low cost manual machines for a start.
Put the money you save from buying coffees from Starbucks in a sinking fund (I always advocate a high-yield savings account) and put that money towards a coffee machine that will last you many years to come.
Remember to make every dollar count for you.
