How
Much Did That Cost
Written
and edited by Harry Rubins for his clients and
friends.
Not intended as legal or tax advice.
Obtain professional advice before taking action on
this information.
Saving money to
build your nest egg is difficult. We know we need
to save for retirement, a home, our child's
education or emergencies, but we never seem to
have enough money. Maybe the problem isn't how
much we make? Maybe it's how much we spend?
Every day, it's
these little purchases that chip away at my
wallet. You know what I mean, the quick stop at a
fast food restaurant for a hamburger and fries or
that impulse purchase at the store we really
didn't need. Before you know it, a twenty-dollar
bill has disappeared. Did you ever wonder what
these things really cost us?
What would
happen if we saved the spare change instead of
spending it?
|
What
I
Thought
It Cost
____________ |
What
it Could
Be Worth at
Retirement*
____________ |
| Candy
Bar (1/week) |
$
0.80 |
$
7,915.55 |
| Extra
Outfit (1/year) |
$89.95 |
$
14,796.24 |
| Fast
Food Meal (1/week) |
$
1.99 |
$
19,689.92 |
| Healthy
Muffin (1/day) |
$
1.85 |
$128,819.40 |
| Gourmet
Coffee (1/day) |
$
3.05 |
$212,377.90 |
* Based
on the future value of the cost of the item
invested as a stream of payments for 30 years at
10% rate of return. Actual rates of return and
time will vary.
Next
time I think of that impulse purchase I will ask
myself, is it worth it? Do I really need
a $19,689.92 hamburger? Where is that Mason
jar for my loose change?
|
