How to Cash in on Starbucks Closings

Related Stories:
Save $10 Now, Pock $100K Later
Pump Up Your Muscle for Very Little Money
Bill Gates’ Club: The Departed CEO

The Starbucks (SBUX) shutterings may have a silver lining.

That is because your $3 a day spending habit can turn into a $1,000 a year investment that generates earnings.

Remember coffee brands like Folgers (SJM) and Maxwell House (KFT) before consumers begin to flock in droves to specialty coffee chains like Starbucks? In recent years, coffee became a luxury for well-heeled suburban and urbanites alike willing to spend $3 (or more) for their caffeine fix.

Now, as consumers cut back on spending, and traffic slows at coffee houses across the nation, shuttered windows will greet many in the next few weeks. Particularly since Starbucks announced a list of 600 store closings, (including MainStreet’s regular Wall St. location) across the U.S., leading many back to the cupboard in search of old favorites to curb the coffee addiction. Not only are store closures a loss for employees but the cultural experience for the customer, including the use of Wi-Fi at a window seat complemented by “The Art of Racing to The Rain” in the background, with the mellow folksy sound of Joni Mitchell’s Big Yellow Taxi or Sergio Mendes' Please Baby Don’t wafting through the air. But, the good news is you can still buy a Hear Music CD, and make saving money a new habit.
Here are three tips for investing the money saved from kicking a $3 (or more) a day coffee habit.

1. CERTIFICATE OF DEPOSITS
A $100 minimum can earn you a certificate of deposit from Preferred Federal Credit Union in Greenville, Mich. that would earn more than 10% of interest in 10 months. (Which, actually can only be up to the amount of your stimulus check.) And, you don’t have to be in Michigan to invest in a CD, there are banks across the U.S. offering great interest rates for a small investment.

2. ONLINE SAVINGS ACCOUNTS
Your mattress is the last place to store your savings. A high yield savings account can reap rewards and many can be started online. HSBC Direct is currently offering a 3.5% rate, and there are no fees and no minimum. And, then there’s also ING Direct which offers an annual percentage yield of 3% for an Orange Savings Account. If your local bank cannot beat the APY rates, consider looking online (www.bankingmyway.com) for the best rate.

3. MUTUAL FUNDS
Madison, Wis.-based Nakoma Absolute Return Fund (NARFX) was introduced nearly two years ago by Nakoma Capital Management LLC after years of managing money for wealthy investors. Your investment to the fund only requires $1,000, and there are numerous other mutual funds that have a low minimum. While the fund avoids seeking aggressive returns, a murky market meant one year returns of 1% and returns of 5% since inception (as of June 30). Utilizing a long-short strategy, the fund is invested in long and short positions. If you’re looking for a place to start, check out Fund Alarm, a free mutual fund Web site.