That is crazy right? How can a simple espresso drink cost you $30,000? That is just how quickly the little daily expenses can add up over a long period of time. Let’s break down the costs and see how this all plays out for you.
- 5 Espresso Drinks per Week
- 52 Weeks in the Year
- One Year adds up to $1,040
- Over a thirty year span that equates to $31,200
That isn’t taking into account the fact that you could have invested that $1,040 annually in your 401(k) which reduced your taxes and invokes the magical powers of compound interest. That means your $4 espresso could turn into an additional savings of roughly $90,000 over a thirty year period with an assumed 6% rate of return.
I’m not advocating giving your espresso up completely but hopefully seeing the long-term impact might help you skip that drink a few times a week to make some headway towards your financial goals.