A long held belief many Aussies share about drinking coffee has proven to be very wide of the mark.

---

Life is short and sometimes you need that long black.

Well-meaning parents and other advisers have long argued that takeaway coffees are preventing younger generations from achieving their financial goals, but the criticism could be more froth than substance.

New analysis has revealed substituting pricier barista-made beverages for homemade coffees won’t perk up your finances to quite the extent many claim.

And it’s also not a recipe for wiping years away from the time it takes to get into the housing market, contrary to claims that those who poured their coffee budgets into a deposit would buy a home sooner.

MORE: How much Aussies will save amid rate cuts call

Research shows those who buy regular cafe coffee tend to spend less on pricier beverages such as alcohol.

---

Among those who have recently weighed in on the topic is Shark Tank USA “shark” Kevin O’Leary who said going out for coffee equates to “pissing away” money on “stupid stuff”.

MORE: Aussie suburbs where home prices are set to crash

Other advice has normally gone something like: “Can’t afford a house? Skip the lattes”.

But research from comparison group Finder.com.au showed one would need to be ordering multiple cafe coffees per day to get a sizeable financial benefit from going cold turkey on the purchases.

An Aussie who ordered a more modest daily coffee five times a week would save about $1240 per year by only drinking at home, which would add up to about $6,200 over five years.

For some perspective, the deposit, stamp duty and lenders insurance costs for a typical apartment purchase in our major capitals would require well over $120,000 in savings.

Shark Tank’s Kevin O’Leary recently commented that going out for coffee was “pissing” away money. Picture: Getty

---

Finder money expert Richard Whitten said cutting out the cafe coffees would make some difference, but those who ordered less regularly would be better off starting with other, easier to implement changes that would deliver larger savings.

“If coffee is something that brings you joy or gets you through the day, you’ll be happier and better off if you cut back elsewhere,” said Finder money expert Richard Whitten.

“Larger scale changes – like switching your car insurance or swapping to a cheaper supermarket – will have a more profound impact on your bank balance.”

Mr Whitten said Aussies should review where they were spending their money to get the best idea of where the potential savings were.

“Spending less on bigger discretionary stuff like Uber Eats and alcohol will save you more than coffee.

MORE: $50k secret could get you a new home sooner

“Downsizing your streaming subscriptions and other ongoing costs could save you a fair bit in a year.

“Paying off any credit card debt as soon as possible – or at least moving it to a balance transfer card in the meantime – is another great way to save.”

Canstar money expert Sally Tindall said the problem with the advice of quitting takeaway coffee altogether was that it failed to acknowledge the pleasure some people got from it.

“A coffee or two a week isn’t going to break the budget, nor is it going to set your home buying plans into a tailspin,” she said.

“A couple of coffees a day, however, along with breakfast, lunch and dinner on the go, an online shopping addiction and an inclination for overseas holidays might.

MORE: NRL v AFL: star players’ secret riches exposed

Canstar money expert Sally Tindall said stripping back the budget to just bread and water could be financial torture. Picture: Tim Hunter.

---

“Saving to put a deposit down on your first property will require some sacrifices, but it shouldn’t go as far as removing all the joy from your life.

“The key is to have a clear but attainable goal to work towards. Once you have the prize in your sights, work out a plan to get yourself there.

“For some people, stripping back the budget to little more than bread and water might be the financial torture they want and need to reach their goals faster. These people, however, are likely to be in the minority.

“For the majority of people, setting a realistic budget that gives them the ability to treat themselves from time to time will be the most workable.”

Ms Tindall said the key was to manage coffee purchases.

“If good coffee is your vice, by all means keep going, but put some ground rules around how often you’re going to have one and how much you’re willing to spend on each cup.

“You might also find that instead of downing those couple of takeaway coffees a day, you take time to savour them.”

MORE: ‘Too much housing’: where prices could plummet