How to Make 20 Cent Iced Coffee

20 cent iced coffee was coined by Graham Stephan, a real estate investor, YouTuber, and investor. On his YouTube Channel, he shares his thoughts about finance and a frugal lifestyle.

If you watch a few of his videos it is no secret that Graham is a penny pincher. Often he advises people to spend less money on coffee and avocado toast. During many videos, Graham pitched his viewers an alternative, the 20 cent iced coffee.

Graham uses hyperbole to state the 20 cent iced coffee is his secret to all of his success, millions of dollars, and millions of followers. However, that’s probably not too far from the truth. In a previous article, we wrote how coffee can help you with concentration and performance.

Due to popular demand Graham finally released the famous .20 cent iced coffee recipe so all his fans can make millions of dollars and achieve success.

It’s liquid gold. People think it’s oil. They’re idiots. The real liquid gold is right here in the 20 cent coffee.

Graham Stephen, Youtuber

How to Make 20 Cent Iced Coffee

If you want to make the 20 cent iced coffee exactly as Graham does it below is a list of all the materials and equipment he uses and the process he uses to brew the 20 cent iced coffee.

There will be links so you can check the price and buy anything you are missing. However, if you want to be like Graham you can go to a store and buy everything on sale!

What you need

How to brew

First, remember we have to get the most value out of our coffee grounds and our goal is to save as much money as possible.

So take your coffee pot and fill it to the max. Your water should be filled to just above the 12 cup line in your pot. Pour all this into the reservoir in the back and it should be filled all the way up to the overflow. Remember, if you don’t fill it all the way up you’ll be losing money!

Next, put in the coffee filter into your coffee maker and pour in your coffee grounds. You should fill the filter up to about halfway. Make sure the water spout is positioned above the grounds.

Once this is all done, turn on the coffee maker and brew all 12 cups of coffee. After the 12 cups are done brewing put the pot in your refrigerator to cool down the coffee so your ice doesn’t melt too quickly. Graham’s refrigerator is set to 38 degrees Fahrenheit.

The last thing you have to do is fill your glass halfway with cubed ice from your refrigerator. Fill your cup 75% of the way with the chilled coffee so there is room for the creamer. Put a dash of the creamer and you’re done.

20 cent Iced Coffee Finances

By making this coffee every day instead of buying coffee over the next 55 years you will be a guaranteed millionaire. Below you will find a table that shows you how you will be able to save $1 million dollars over 55 years.

Pete’s Coffee$8.70 for 66 cups
Kroger Filters$ 0.05 cents each pot
Coffee-mate Creamer$0.25 cents for 66 cups
Total$9.00 / 66 cups of coffee = $ 0.136 cents per cup of coffee

Price per cup of coffee calculation

The rest of the $ 0.07 cents goes to pouring yourself a little more coffee!

How 20 cent iced coffee will make you a millionaire

Graham’s philosophy is by drinking a 20 cent iced coffee you will be saving money you will have otherwise spent. If you compound the money you would have saved over 55 years at a standard market rate of 7% yearly you will be a millionaire.

You will be saving $2 per cup of coffee and if you have 3 cups of coffee a day that will be $6 per day. If you invest that $6 into the stock market at 7% you will have $1,331,086.16 by the end of 55 years. Below is a compound interest calculator that will show you how much money you will save each year.

Years $2,160 saved yearly with 20 cent coffeeCompounded Amount Saved
1$2,160$4,471.20
2$2,160$6,944.18
3$2,160$9,590.28
4$2,160$12,421.60
5$2,160$15,451.11
6$2,160$18,692.69
7$2,160$22,161.17
8$2,160$25,872.46
9$2,160$29,843.53
10$2,160$34,092.57
11$2,160$38,639.05
12$2,160$43,503.79
13$2,160$48,709.05
14$2,160$54,278.69
15$2,160$60,238.20
16$2,160$66,614.87
17$2,160$73,437.91
18$2,160$80,738.56
19$2,160$88,550.26
20$2,160$96,908.78
21$2,160$105,852.40
22$2,160$115,422.06
23$2,160$125,661.61
24$2,160$136,617.92
25$2,160$148,341.18
26$2,160$160,885.06
27$2,160$174,307.01
28$2,160$188,668.50
29$2,160$204,035.30
30$2,160$220,477.77
31$2,160$238,071.21
32$2,160$256,896.20
33$2,160$277,038.93
34$2,160$298,591.66
35$2,160$321,653.07
36$2,160$346,328.79
37$2,160$372,731.80
38$2,160$400,983.03
39$2,160$431,211.84
40$2,160$463,556.67
41$2,160$498,165.64
42$2,160$535,197.23
43$2,160$574,821.04
44$2,160$617,218.51
45$2,160$662,583.81
46$2,160$711,124.67
47$2,160$763,063.40
48$2,160$818,637.84
49$2,160$878,102.49
50$2,160$941,729.66
51$2,160$1,009,810.74
52$2,160$1,082,657.49
53$2,160$1,160,603.51
54$2,160$1,244,005.76
55$2,160$1,333,246.16

Compound Interest Calculations if you saved $6 a day for 55 years

Take away

This is just one way you can live like a minimalist and save some extra dollars to save in an investment account. Personally, I am a huge fan of Graham Stephens and love the idea of the 20 cent iced coffee as well as dividend growth investing for the long term. Cheers, this one is to you, Graham!

It is great to see coffee being embraced by such a hard-working entrepreneur like Graham. It goes to show, no matter how frugal Graham is, and no matter how successful he is, Graham will always need coffee… even if it is $ 0.20 cents.

Let me and Graham know what you think of the recipe below and how you can make improvements to his recipe!

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