We love our coffee, don’t we? In fact, according to a survey done by Accounting Principals in 2012, the average American spends $1,092 annually on the beverage. That comes out to $2.99 per day, or about the cost of the smallest-sized coffee at you know where.
You say, “It’s only $3.00. It’s no big deal!” Believe me, I say it, too. I look forward to my morning cuppa as much as the next guy! Maybe more. But check this out: If you took that $1,092.00 and invested it every year in a vehicle that earned 3% interest, you’d have $29,342.45 in twenty years. That’s at 3%! At 8% interest it’s just shy of $50,000.00. And that’s if you’re buying the smallest coffee each day! Think about that number if you shell out $5.00+ a day.
I don’t tell you this to be a Debbie Downer, but the “little things” do add up. And when it comes to lunch, 66% of Americans eat out for lunch as opposed to brown bagging it, according to the same survey. This costs an average of $37.00 each week. Applying the same math, that’s $1,924.00 in one year, which invested annually at 3% is $51,698.60 in twenty years. At 5%, it’s $63,618.90, and it’s $88,046.02 at 8%! That would go a long way towards the down payment on that awesome Mexican villa you’ve dreamed about all these years!
Even small adjustments can make a big difference. Let’s say you decided to cut back on eating out for lunch to three times a week. That would save you $14.80 a week, or $769.60 a year. If you took that amount and invested it each year at a 5% return, you’d have $25,447.56 twenty years from now.
I’m not saying that you shouldn’t treat yourself from time to time, but think about those little financial tweaks you could make, and what a big difference they could make for your future.
You can use FitFin’s easy budgeting tool to help you set up a weekly or monthly budget for coffee, lunch, or anything you want. You can set up a budget in about 15 seconds and then take about another 15 seconds to track an expense. It’s a great way to watch where your money goes. If you don’t already track expenses, give it a try. It doesn’t take long to do and you might be surprised how each of those little expenses that seemingly don’t mean anything really can add up.
Check us out at http://www.fitfin.com.