First, let me say, I drink A LOT of coffee! I’m not casting stones or in any way advocating you not to have your morning Cup of Joe, that would be insane! 
I do think its interesting though to consider what that daily cup of coffee costs us throughout our life. What really makes me think about this is when we go to help retirement plan participants and they say (everyone says this, you aren’t alone!) “I can’t afford to increase my 401k contribution”.
HOW MUCH ARE YOU SPENDING ON COFFEE???
Let’s just assume that you are buying the local convenience store coffee and not the Triple Mocha Grande Latte Frappa-whatever….. and you are paying $2 a day. Again, probably low on average, but just for the purpose of this exercise. Let’s also assume you don’t parlay that delicious morning necessity with a donut/bagel/gluten free protein bar at another $2-$4. So I’m giving you a lot of credit for will power here!
$2 a day for 25 days a month for 12 months would equal $50/month or $600/year. Again, probably a conservative number, but somewhere to start….
If you are 25 and do this until you are 65 and could potentially be missing out on an average return of 6.5% (S&P 500 has averaged 7% annually since 1950)…. it would equal………..
$108,495.29
Ok, I know what you are thinking… No Way That Can Be Right!….
This is just a simple exercise to get us to think about the money we spend every day and simple steps we can all take towards a brighter future!
Enjoy that cup of coffee, I know I will, but also think about a few bucks here and there that you could put away in your retirement plan….. it could make a HUGE difference and improve your Retirement Readiness!
As always, enjoy life today, but plan for tomorrow!
Ryan Oates
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Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
