Fact: Eating out costs money.
Turns out the average American forks over $11.14 twice a week for lunch, according to a Visa survey. But, if you redirected the $1,043 spent each year on lunch into an investment account earning 6%, you would have an estimated savings of $88,500…thirty years later.
This personal finance math lesson shows how seemingly inexpensive, everyday indulgences can add up to a big hit to your net worth without you even knowing it. It’s akin to the so-called “latte factor,” or the long-term cost of parting with cash each day for a high-priced coffee. Or stopping at the food truck for a roll and butter and container of orange juice. Or regularly spending a few dollars on new apps for your phone.
Here are healthy investing tips…
Give up less by spending smarter.
Instead of buying a large Mocha Caffé Latte each day at Starbucks, consider buying the same coffee in bulk via a 36-count K-cup package for $28.95, which nets out to 80 cents a cup. That’s a daily savings of about $4.
“Each person needs to figure out what their daily comfort purchase is. Something that could easily be cut out or that you wouldn’t miss. Is there a substitute or alternative?”
Examine your spending motives.
There’s a psychological dimension to spending. You need to find out to what extent your spending is based on real needs or simply based on a need to feel better about yourself or your situation. Once you identify your spending triggers, maybe go for a walk instead of heading to the corner coffee shop.
Do a regular spending audit.
Review a few months worth of credit card, checking or savings statements. Go through them purchase by purchase and find out where your money is going…
SOURCE: USA Today https://goo.gl/vf3O8x
VERSE: “Let everything that has breath praise the LORD” Psalm 150
QUOTE: “A person who loves his job, will never work a day in his life.”
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