In the world of personal finance, the “coffee effect” is basically daily spending that ultimately sneaks up on you over time. If you suddenly stop making coffee purchases at your local coffee shop every day, you’ll actually be saving a lot of money each year. And if you’ve opted to make an investment for such funds, you could end up earning more every year instead.
The same theory is applicable to anything that’s cheap, obsessive, and easy to get a hold of: alcohol. If you have a habit of drinking several times weekly, and average a few drinks per sitting, you’re actually wasting hundreds of dollars monthly on alcohol. If you have a tendency to binge drink —- several more drinks per setting for men and women —- the number will triple.
Studies indicate that drinking alcohol (including binge drinking), can ultimately lead to damaged finances in far less obvious ways.
In the same manner, a couple drinks can make you free as you want and interact with anyone, a complete buzz can further lower your standards in your wallet. When you’re at a bar, it would mean having more drinks for yourself, your friends, and other strangers who appear to have had a long and tedious week. And next thing you know, you’ve wasted hundreds of dollars in month drinking away.
Health studies also say the same if you’re drinking from home while watching TV or surfing the web.
Work and Productivity
Based on a study regarding the economic effects of drinking, it shows how binge drinking all throughout an individual’s lifespan can have variable influence on economic productivity. Studies believe that in the early stages of life, binge drinking can influence a person’s academic performance, while later in life, it can affect how long they’ll last at work because of early death or health problems.
Drinking will take its toll in the middle age as well: research shows that drinking alcohol heavily not only leads to frequent work absences, but also constantly showing up for work sick.
It turns out that showing up sick is bad for productivity, and can therefore be an influence to an organization’s bottom line. There’s a good reason why being absent and showing up for work sick can have an influence in a drinker’s professional career and personal finances as well.
Drinking heavily can suppress the immune system, therefore increasing the risk for illnesses such as pneumonia, cardiovascular problems, pancreatic cancer, and other internal injuries. More doctor visits can lead to larger medical bills and more health insurance for the alcoholic.
The connection between drinking and debt isn’t exactly clear. It’s difficult to pinpoint, but a recent study showed that debt — a huge drain on personal finances —- is definitely associated with frequent drinking. I didnt realize how much I was spending on my drinking until I started tracking my finances with a mobile app and it told me how much I was spending – 450$ per MONTH! I thought it was about 25% of that, but after looking closely at everything, it was right.
When you’re addicted to alcohol and have been drinking for the long term, results can be predicted, although each drinker will have varying results in which the toll can further increase in more ways than you’d imagine. Long-term alcohol problem will have a huge effect in your life since it can later lead to devastating results.