From Beans to Bucks: The Secret to Saving Thousands on Coffee and Building Wealth

The astronomical amount of money spent by Americans on coffee is no secret. In fact, one-third of Americans spend an average of $92 per month on their morning fix. That’s a whopping $17 billion per month! I couldn't believe it when I first read about it in a recent report by Acorns.

It’s no wonder that people are looking for ways to get their caffeine fix without breaking the bank. And that’s where your local bank comes in. Yes, you read that right. The bank can be your go-to destination for a complimentary cup of coffee.

You might be thinking, "But isn’t that only for customers who are conducting a transaction?" Well, not necessarily. Don’t be shy or feel embarrassed about popping in to grab a cup of coffee. After all, the bank is making a lot of money just by holding your money. In 2018, the largest US banks collectively made over $120 billion in revenues, mostly by lending out your money without your permission and without giving you any return on investment.

This is a system called "fractional reserve banking," which allows banks to use a fraction of the money deposited by their customers as reserves and use the rest to make loans. This essentially creates new money out of thin air, and you're left with no idea what’s going on with your money.

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Here's a simple example to illustrate how it works. If you deposit $1,000, the bank only needs to keep 10% in reserve, which means they now have an excess reserve of $900 to lend out. Whoever borrows that money will most likely deposit it in their own bank, and the process will repeat at least 74 times until the excess reserves are at zero. In other words, $1,000 will magically become $9,000, and you won't see any of it.

And if that's not enough, banks also charge you various fees like NSF, monthly fees, and other ridiculous charges that make no sense. So instead of spending $92 a month on coffee, invest that money in something that will bring you long-term benefits when you get older. Mutual funds are one option out of many. For instance, if you invest $92 a month at the age of 25, you will have $286,000 by the age of 65, assuming an 8% average annual return. At the age of 35, you will have $125,000, and at the age of 40, you will have $81,000.

So don’t feel bad about stopping by the bank for a cup of coffee, even if you don’t have any business there. They use and abuse your money as they please, creating money out of thin air and making billions in profits without sharing any of it with you.

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In a world where everyday expenses can add up quickly, it's important to take advantage of every opportunity to save money. The fact that banks offer free coffee to their clients is a prime example of a cost-saving measure that most people are completely unaware of. By simply changing your morning routine and getting your coffee from the bank instead of your local coffee shop, you could save yourself thousands of dollars over time.

Just walk in confidently, and if a greeter asks how they can help, say "Good morning, I'm just here for a cup of coffee, and I'll be on my way." Trust me, the bank won't mind, and your bank account will thank you.

Click here to learn how to multiply your net worth over the next 2 years