1000 a year is substantial for two people: If you are at absolute rock-bottom poverty, surviving on benefits, and $5 a day is everything.

Or, your salary is covering everything you need/very minor luxuries (like chocolate), but you want to start saving some money. Cutting out a coffee to start your savings would probably be worth it, (to me).

But a lot of people are in the situation where they're just scraping by, every money decision is stressful and they're managing to somehow survive. $1000 in a year for those people gets you almost nowhere. It doesn't significantly help rent, health insurance, car whatevers. And if they didn't buy the 'coffee' (or whatever luxury), they'd 100% spend it on another need - like a little more food. So it doesn't change their situation either way.

I do get what you mean, because more money is more money, but sometimes the luxury is worth more than whatever benefit you'd get from 'saving' it (with this small amount of money)