The Java Dilemma: Saving on Coffee in Tough Times

Flavored Lattes

If you prefer a particular flavor in your latte -- say, chocolate or caramel -- you'll also have to buy syrup. One 25.6-ounce syrup bottle will cost between $7 and $8 at a grocery store or coffee shop, Groot says.

Now, let's do the math again, this time for a latte:

Espresso-blend beans can be more costly than others, so let's assume a $15 price tag for a 1-pound bag. A typical 1-pound bag has enough for 56 shots. If you drink 1.5 shots -- which is equivalent to about 1.5 ounces -- a day, that means you'll need about 10 bags per year at a total cost of $150.

Assume $200 for a grinder.

Assume $500 for an espresso machine.

According to the U.S. Department of Agriculture, milk cost an average of $3.72 per gallon in October. If you use 6 ounces of milk for one latte each day -- after steaming, the milk will expand and will actually result in more than 6 ounces -- you'll need to buy about 17 gallons of milk, which amounts to roughly 2,190 ounces, per year for a total cost of about $63.

For a flavored latte, add at least half an ounce of syrup. A 25.6-ounce bottle will provide enough for more than 51 servings. To have enough syrup to last you a year, you'll need at least seven bottles, for a total cost of $56.

In total, your homemade latte -- assuming you use one shot of espresso a day -- will cost $969 for a year or $2.65 per day. A tall, flavored Starbucks latte purchased recently in New York, meanwhile, cost $3.50 before tax. Your homemade savings? It's $310 for a year. Settle for midrange coffee grinders and espresso machines -- at $100 and $200 each -- and your savings soar to $708. Follow Karpel's advice and skip the expensive grinder -- or skip the flavorings -- and your savings are even greater.