That second coffee could be costing you $70,000 a year

For the second time this week I’ve found myself saying, “I’d love to buy you a coffee, but I don’t have any money left in my account.” Which according to new research, means if I want to have more money I should get out of the cafe.

Independent finance watchdog MoneySmart have found Australian households are spending an average of $1236 a week on everyday expenses. That's almost $70,000 for every household each this year or approximately $642 billion across the country.

MoneySmart have coined the term “spending leakage,” for all those incidentals you purchase during the week including: coffee, lollies, takeaway and bought lunches.

According to News.com.au:

"MoneySmart says "spending leakage" could be costing millions of dollars.

Cups of coffee are examples of spending leaks. They are the little things you regularly spend money on that add up over a long period," MoneySmart and Australian Securities and Investments Commission senior executive Robert Drake said.

However, cutting back on chocolates, bought lunches and the odd glass of alcohol can save about $3000 a year, according to a new free mobile phone application."

As a relatively new parent (of a one-year-old) this is not the news I want to hear. I've cut back on alcohol, I hardly go out anymore and the last movie I saw was more than two years ago. My only vice is coffee and buying my lunch and now I'm going to feel guilty about that. 

If you want to know more about MoneySmart's app you can find it on iTunes or their website here. I'm going to do it now (okay, after I get my second cup of coffee).

How do you spend your disposable family income?