I have to say I LOVE Starbucks and more so than Starbucks, I just love coffee. I can’t think of a world where I wake up and not have coffee every morning, sometimes multiple times. It’s probably up there as one of my top things in life and top priorities. OK, you got me I’m an addict, but I tell people all the time that it’s really not the caffeine that I am addicted to because I love decaf just the same. Well almost the same. None the less, my favorite thing to do is to make it over to Starbucks for a Salted Caramel Mocha which in my town costs $4.95 for the Grande size.
I mean what else would you rather pay $4.95 for than a rich and wonderful warm toast than a Starbucks Salted Caramel Mocha. I mean what else would you rather do?!? Nonetheless, let’s be honest, $4.95 is pretty steep for a cup of coffee and one that is probably filled with plenty of sugar and other things that probably are not tremendously great for me from a health perspective.
Let’s just say for a minute if I was able crack the habit and eliminate that daily intake of coffee. Say goodbye to that wild and wonderful cup of Salted Caramel Mocha…. It’s hard to imagine, but let’s just say for minute that’s what I did.
So that would eliminate a daily spend of $4.95 a day. Not much right? Well let’s say from someone that is 30 years old and instead of spending that $4.95 a day, I invested that in a mutual fund monthly over the period of time until retirement at the age of 65. Folks, eliminating that habit would afford me a grand total of $331,633.96 when I retire. $331,633.96 more than what I would have had if I would have just continued that coffee habit. That’s a paid for house and quite a nice one for that matter, all because I decided to kick the daily coffee habit.
Now, don’t get wrong … I can’t give up coffee because I am pretty I might die if I do. Just kidding, but for real think about the little things in your life that you spend money on without even thinking. Some things on regular basis that are much more expensive than a cup of coffee and think about how much money you could have had in retirement if you just tightened up the spend and invested that money instead.
It’s time now to put together a plan. If you don’t have a investment plan, go now and get something setup. Even if it’s a small amount like a coffee a day, that’s better than nothing. Also, the sooner you start this plan the easier it will be to get to your goals later in life. Compound interest adds up over time, but it much harder to make up ground each year that you let pass without an investment plan. I want you to think about that ever time you go buy a cup of coffee. Every time you go get a cup of coffee evaluate whether you are also making the appropriate investments in your life for your future.
If you see the calculator below, you will see I started with nothing at the age of 30. Investing approximately $4.95 a day ($148.50 monthly) with an average rate of return of 8%, over the years until your 65, you get $331,633.96. By the way, in 2016 my investments had a 22% rate of return so you can do better than 8% if you invest in the right mutual funds.
Are you going to get your investment plan in motion today? How are you going to structure your investment plan? Please share your ideas!