That Priceless Cup...
It is easiest to think in terms of absolutes and the big picture. Large numbers, large ideas and big plans keep us focused. But what about the little things? Something as simple as a daily cup of coffee or a pack of cigarettes can make all the difference...
While you sit in your cubed cage banging on those keys for the fourteenth straight hour, inevitable visions of the maturing fruits of your labor begin to form in your mind. Some might see jets and yachts, another the proverbial model with a bottle and for those more grounded, perhaps just a debt free comfortable existence.
That is why this Katherine Rosman piece about overpriced coffee of all things, is such a crucial and thought provoking read for the young would be master of the universe.
In the article, Rosman addresses the simple little frivolities we engage in on a daily basis. How expensive they really are and whether or not they are worth it. In her case it is the daily injection of a $ 4 coffee fix. Not too subtly addressed is the tangential point of every dollar spent being a point of discussion and debate in a marriage. But since I got up on the right side of the bed for once, I won't be bashing the unholy institution today.
It is worth thinking about, however, where exactly it is that your hard earned money goes. Almost all of us here budget with the dreams of scrounging away enough pennies for some prestigious luxury. How many of us really account our own budgets to the high level that we do our daily spreadsheets?
Do you know just how much you are wasting on coffee, cigarettes, magazines, Iphone apps, takeout, etc? Does it even matter? After all, when you spend most of your time in a cubicle and in the service of aging simians... what's wrong with splurging a bit on the tiny perks?
I have found that over the years, I have spent a lot more money on the little things than on the big ones. Every home, car or recreational vehicle gets my eternal attention and endless analysis, before it is purchased. I don't really think about that extra espresso shot or the blue cheese stuffing in my steak...but they do add up.
Can you think of all the little stuff you spend your money on? The things you don't actually need, but feel like you have to have? How many of you guys are the type to buy a Keurig and park it in the bullpen instead of heading to Starbuck's three times a day?
Ultimately, does it even matter? Can a man really get rich by grabbing pennies in front of the oncoming bulldozer? At which point does pinching pennies wind up breaking your thumbs?
Midas, you're a right prick. I had coffee all teed up for tomorrow.
http://www.thestreet.com/story/11094379/1/coffee-futures-surge-oj-tumbl…
The only thing I'll add is that everyone who wants to make a little dough should look to short July coffee starting next week. I can't explain why, but shorting July coffee in early May works every year (at least every year I've done it). One year I even shorted it and then wrote naked calls against it because the premiums were so out of whack. Made a bundle on both sides.
I remember explaining the trade to one of the "top" guys in the office at the time, and he just couldn't get it. He thought the calls were supposed to offset the short position, even though he knew that was wrong and he couldn't get his head around it. I finally explained that there was short, and then there was really fucking short. In this case, I was really fucking short. He ended up running from the trade and wetting on himself in the corner, and then there was much gnashing of teeth when I cleaned up. Such is life.
Anywho, short it next week or early the following week and you should make some pretty good bank.
Back in college, our finance club stumbled upon something such as this. We realized that Bill Ackman owned something like 15%-20% of Borders and gave them a line of credit couple years ago (couple years ago back then). Every year when the contract was about to exprire he would extend it because he had such a big stake in Borders and their share price would go up like crazy. We figured he would do it again, bought a shitload of options on a share price that was really beat up and waited. Sure enough, the day of the announcement, Ackman extends his line of credit to Border and says that the bankruptcy of Borders is unlikely (What else was he supposed to say though), share price goes up to something like $2.50 and we make a killing on those options. Needless to say that was a one time deal for us and Ackman himself lost something like 99% of his investment while Borders is pretty much done.
Thanks for the idea though Eddie, it reminded me of this story.
Thanks pretty sick, SB for u
Whoa. Epic call sir... didnt follow in but, well, look at the chart today http://www.finviz.com/fut_chart.ashx?t=KC&cot=083731&p=d1
Whoa. Epic call sir... didnt follow in but, well, look at the chart today http://www.finviz.com/fut_chart.ashx?t=KC&cot=083731&p=d1[/quote]
That's just how I do...
It's weird but the single biggest "leak" in my budget probably comes from the Amazon.com used section. If it weren't for those stupid shipping costs I would end up on an episode of hoarders in no time.
When I first started working I got breakfast at Strabucks every morning and usually made a second trip in the afternoon. After realizing I was spending $50-$100 a month there I switched to instant coffee (Flavia ftw) and Pop-Tarts. That may sound weak but Starbucks really is only marginally better.
Amazon Prime is such a double edged sword
I spent shitloads in my first few years on breakfasts (easy to spend £4/5 a go - which was $10/11 at the time) then I'd get two massive coffees (£3.50) pre and post lunch (another £5/6 for) and smoke 80 ciggies a week (£20)....it was all a stupid waste of a huge amount of money.
These days I toast a bagel in the office for breakfast, drink the free instant coffee and limit my lunch spend as much as possible and I quit smoking on Jan 1st after 10 years....all this and im earning 4/5x what I was when I was an analyst.
Wasting money is stupid, but you have to do it for a while to realise.
I realised a few years ago that I was spending about 2k on coffee a year, and decided that was way out of whack, so cut back drastically. Pretty sure the extra money just went to other vices though...
Coffee's not an issue. $200-$400 per month, $2400-$4800 per year - many of these trips count as meals anyways. Are you really worried about this? There is substantial more value being sucked out by weekend recreation and superficial friendships
headed to starbucks now...need caffeine
I minted my $ and was shocked at how much I spent on F&B. But I also make my own espresso every morning. coffee out of a paper cup is so uncivilized.
From the man himself:
I don't mind spending that much on a coffee but I DO mind spending that much on a Starbucks coffee. Once you've had Abraco, Stumptown, Blue Bottle etc in NYC, you can't go back.
A lot of my spending has barbelled this way-cheap-ass beers in dive bars or nice whiskey/cocktails/beers at a nice place, and less $6-8 mid-range beers in anonymous Midtown douchedens.
I'm more of a $2 per cup guy myself--when you do that, it's less of a treat. But even that adds up, especially on a college budget. And I switch it up from time to time--Financier, Au Bon Pain, Cosi, etc.
Might be a little early to the dance, but I just shorted JO at $77.60 for those interested. Sure looks like a double top to me.
Lol. You and those candlesticks Braverman. If there was a scented wax contract you'd be all over it.
I've always favored candlesticks as confirmation of a trade idea, although I used the PLDot method (similar to P&F, as I understand it) pretty heavily when I was doing it for a living.
Are you shorting it straight up or through options? How much do you expect to earn from this in % terms?
Straight short because there are no JO options. I'll exit the trade by the end of May, or when I think I've made enough. Just based on a rough extrapolation, though, it could probably drop to $65 pretty easily, so 15% in a month.
As of January 1 I started a spreadsheet to see exactly where my money goes. I log every expense, which is tedious as fuck, but it finally gave me an idea of where the fuck my money goes after this shitty ass government takes their 40 fucking percent. Needless to say, as one can probably guess, the majority goes to alcohol and restaurants. I also realized I was giving an abnormally large portion away to charities - about 15-20%. I guess that isn't so bad though.
It's eye-opening, and particularly annoying, when you think like Buffet in that if you didn't spend that $3,000 today it could be $25,000 in 15 years or whatever. Although that is true, I enjoy living my life and don't want to save every dime.
mint.com dude...
Thanks. I just heard of that about a week ago. AMEX has a cool feature that allows you to tag items as well and that works as 80%+ of my spending is on my card. Great for tax season and also makes you go, "Fuck. I spent THAT much on alcohol?".
Oh. I thought this was going to be about two girls.
As far as coffe - I just need the caffeine and have no problem with the dollar coffee from the street vendors. Booze and cigs were my largest expenses until I quit both [mostly] last November, and the gym is almost as good a place to network. Now I'm trying to figure out a way around rent - and open to suggestions. When I go out now, I spend money freely, but mostly to demonstrate to the people I'm hanging out with that I'm intentionally saving money and that I'm NOT a cheapskate. I don't plan on staying in finance for more than a decade or so, and I'd like to walk away from it with more than the memories.
Do they have Nespresso in the States? That seems like the ultimate cubicle accessory. I think a shot of espresso pencils out to 35 cents or something, and it's way better than what you can get at SBUX (unless you're into the triple half-caf Sumatran-Ethiopian cross-blend cinnamon soy latté with low fat caramel - in which case you should get a fucking life. Everyone hates you. No one wants to take your coffee order, dipshit.).
For a streamlined caffeine delivery system, Nespresso is like a sore dick - you just can't beat it.
Most offices use Keurig machines, not sure how the quality compares to Nespresso. It's definitely good enough for me, though I try to drink tea rather than coffee anyway when I need caffeine (which I try to avoid in general, in favour of water, which is healthier and just as effective in the long run).
Starbucks in general tastes like piss. I simply do not understand its appeal.
Nespresso is awesome. How can you not love the uber smug Clooney advertisements?
no homo?
No homo. I was referencing the smugness, not the man.
To be fair, that's a handsome man.
Oh, yeah. No homo.
The only truly priceless cup is the one that keeps a ball from smashing your bro-bits on the field of play.
I just drink tea. I prefer the taste, it's less than 10 cents a bag, and healthier.
Problem solved.
Not as much caffeine as coffee though so you'd probably need to double tea bag.
No homo.
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