Watch out, David Bach. A lot has changed since the financial wizard coined the term "latte factor" to show us how our money seeps away. Welcome to the new world of home coffee machines.
We're not talking the nineties versions that would steam and brew a mug that could compete with Starbucks and include just about all of the rituals of being in the actual cafe. No barista training required with today's versions. Think new millennium, less than 30 seconds, high-tech machines. The hottest model on the market – the Nespresso – will set you back $500 to $1,000 and that's not including the cost of their coffee. A capsule system, with barista-quality milk froth, it's a one touch-solution for the snobbiest coffee drinker.
Or how about a moka pot, the stovetop espresso maker? Feel like you're in Italy! Those who can't wait to hit their local hipster coffee joint are lining up to buy the perfect pot for the perfect joe.
You've seen them and might even own one. The question is, it is worth the price?
Let's look at a few examples.
Pod coffee machines
Price: $119-$249
Popular brands: Keurig, Cuisinart, Tassimo, and Nescafe
Time: 10-30 seconds
Cost: 56-78 cents per cup of coffee (average 67 cents)
French press
Price: $20-$50 (plus the cost of a kettle and coffee grinder – the latter around $20)
Time: 10-15 minutes to boil water, grind and steep coffee
Cost: Beans vary – a 907-gram bag of Kirkland beans from Costco averages 14 cents per cup
Now, consider the math behind your morning joe (assuming three cups – not mugs – per morning):
Pod coffee machine (not including the machine): $60.30 per month / $723.60 per year. Keep in mind that these machines are akin to the ink-jet printers of the past – once you commit to one brand, you're stuck with the compatible coffee pods. With the ever-increasing cost of coffee, shop carefully.
French press and beans: $12.60 per month / $151.20 per year
Kelley Keehn is the author of The Money Book for Everyone Else.