Many people spend at lest $3 a day on consumables such as coffee, snacks, and other things that they really could otherwise do without or incorporate a much less expensive alternative.
Doing this is costing these people TONS of money! This totals to about $1500 a year to be exact! $15,460 over ten years if the money were invested instead.
Here’s the simple math:
$3 x 365.25 = $1095.75 x 10 years = $10,957.50
If the money were invested and getting a very conservative return of 6% annually, compounded monthly, the total would be $15,460. $4 per day makes it just over $20,000!
If this doesn’t make you think twice about those coffees or snacks or some useless $3 item, I don’t know what will.
Additional Calculations
After the 10 years of investing $4 a day, you can spend $2.20 a day forever from the interest gained on the investment! I haven’t done the calculation, but I’d guess that after a total of 15-17 years, you could spend $4 a day!
FIRE by 48 