savings bonds

How Skipping Starbucks© Helped Me Accumulate $1,000 Worth of Savings Bonds

Posted on August 10, 2017

The jolt of caffeine from the vanilla grande latte helped me realize if I skipped my regular visits to Starbucks© I could accumulate at least a $1,000 worth of U.S. Savings Bonds in a year.

While waiting in the long Starbucks© line, gazing up at the big menu board – and big prices – a light bulb went off.

The jolt of caffeine from the vanilla grande latte helped me realize if I skipped my regular visits to Starbucks© I could accumulate at least a $1,000 worth of U.S. Savings Bonds in a year.

After recently scrolling (and cringing) through waaay too many pages of my last few credit card statements, I was shocked when I realized I was spending approximately $80- $100 a month... on coffee.

By making my daily cup or two of coffee at home, I would save around $18-$25 a week. That’s a lot of (coffee) beans!

I pulled out my k-cup coffee maker, cleared a spot on my kitchen counter, and added my favorite coffee – including Starbucks©, along with my favorite flavored creamers, to my grocery list.

Since I didn’t trust myself waiting a month to purchase a $100 bond (shoe sales are my financial kryptonite), I decided purchasing weekly $25 Series I Savings Bonds (the minimum electronic purchase amount currently allowed) would be a smarter way for me to stay on track.

I took into account weeks for birthdays, vacations and holidays when I likely would need some extra spending money and would skip the bond purchase.

I wrote down 40 “buy bond” reminders on my calendar.

The Series I Savings Bonds that I recently purchased is earning 1.96% (interest rate for new I bonds purchased through October, 2017), which is still a lot more attractive than my current savings or checking account rates.

More importantly, purchasing savings bonds in small denominations would be a simple and systematic way for me to save.

While I don’t plan to use the new savings, I can cash in the bonds after they have been held for at least twelve months (although a 3 month interest penalty applies for bonds redeemed in first 5 years).

While I don’t visit Starbucks© during the week, I still “treat” myself to a Starbucks coffee once in awhile on the way to the gym. It is my reward for working out.

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