Picking up on that, I asked Deborah if she drank the office coffee.
“No way,” Deborah replied. “The office coffee is the worst. I go downstairs and buy a latté every morning.”
I asked, “Do you buy a single or double latté?”
“I always buy a double nonfat latté.”
“Great,” I said. “Now, what does that double nonfat latté cost you ever morning?”
“Oh, about $2.50.”
“Do you just get a latté, or do you also get a muffin or a bagel with that?”
“I usually get a biscotti.”
“Do you get the biscotti with chocolate on them?”
“Oh, yes,” Deborah enthused. “I love the ones with chocolate.”
“Great, Deborah. Now, what does the chocolate biscotti cost?”
“I guess about $1.50.”
“So you’re spending about $4 a day for a latté and a biscotti. Interesting.”
I let Deborah continue taking me through her day. In the process, we found another $10 in miscellaneous costs—a candy bar here, a Power Bar there, a protein shake in the afternoon, and so on.
When she was done, I pointed out that just by cutting out her latté, a couple of Diet Cokes, and a candy bar, Deborah could save about $5 a day—and that $5 a day equaled roughly $150 a month, or almost $2,000 a year. This $2,000 could be put into her retirement plan at work, where it could grow tax-free until she retired. If she put in $2,000 every year, and she invested it all in stocks (which have enjoyed an average growth rate of 11 percent a year over the last 50 years), chances are that by the time she reached 65, she would have more than $2 million sitting in her account. In other words, she would be able to retire a multimillionaire!
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| jwzest | |
| I think our standard of living is more than financial stability. Happiness really doesn't only depend on how much money we are able to save. This doesn't mean I'm suggesting not to be careful with spendings. But giving up a lifestyle that makes you happy might not lead to contentment when you retire. | |
| MorganC | |
| So true. I can't just get A coffee. I have to get the crumble cake, and then the Starbucks mugs always get me. They're so cute and seasonal. Geesh. I'm in the trap. | |
| sarabel -- Miami | |
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| Alliekat03 | |
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| CoffeeAddict | |
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