I have reduced my 10$ a day habit down to 4$ a week. It was just getting too much. Not just the money. But each day I would stop at the local Starbucks, flirt with the baristas and waste about 10-15 minutes 2 times a day.
According to my calculations
10$ a day 7 days a week = 70$ a week
$3650 a year -
109500$ after 30 years.
If I was able to invest the 10$ a day for 34 years and get an average of 10% return I would save.
Get this !!!!
Results |
Total saved: $1,003,286 | |
Starting with $0 and depositing $3,650 annually over 34 years and 1 months (at a rate of return 10% compounded monthly), you will save $1,003,286. | |
Initial balance: | $0 |
Total deposits: | $124,100 |
Total interest earned: | $879,186 |
Total taxes paid: | $0 |
Now lets calculate how much my time is worth.
If I was making 20$ an hour (I'm definately not)
30 mins at 20$ an hour = $10 an hour a day in lost wages.
How much was my 2 coffees a day costing me in time?
Same as above -$1,003,286
sort of.
That is assuming I make 10$ an hour
That is assuimg that I do not become a better business person and increase my ability to make money
That is assuming that my net worth increases at the same interval as the 10% return as above.
Thanks to David Bach - for the inspiration to change.