Each day, under our own nose, there is a cost to the Starbucks habit. I am talking about something so innocent and naïve, we fail to see the harm it is doing to our pockets.
That’s right, your Starbucks habit is dipping in to your retirement money – and you are letting it happen!
Every day on your way to work you grab a coffee, swiping your card a couple dollars here and there without a second glance. While you are drinking that coffee, do you really thing about how much your latte habit costs you? Mindlessly swiping your card for a $4 drink can be costing you a good chunk of change in the long run.
Let us do a little math. Assuming you get a cup o’ Joe each day before work, 5 cups a week turns in to 22 cups a month and roughly 260 cups a year. Translated into dollars, that $20 a week, $88 a month, or $1,040 a year just for your morning coffee.
Now imagine that money as part of your retirement. Using a historically conservative return of 5% compounded annually over 30 years that latte can cost upwards of $72,551. This is the power of small financial decisions making a huge impact over time. Wow… That’s a wakeup call stronger than a double shot espresso latte.
Disclaimer: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.