Can Skipping Your Daily Coffee Help Your Retirement Savings?
By drinking the free office coffee or making it yourself at home, you could add more than $100,000 to your retirement nest egg.
Most of us do it — some of us do it every day. On our way to work or during our break, we order on apps or stand in line for that warm, rich, perfectly brewed, caffeine-boost.
The premium coffee industry has evolved over the last few decades to convince us that life is not worth living without our morning latte.
A $4 daily dark roast costs you $28 a week. That amounts to $1,456 a year. If, instead, you invested that mocha money for retirement over the next 30 years at a modest rate of return of 6 percent compound interest, your sacrificial willingness to drink the free office coffee would yield you an additional $115,000 in retirement savings.
This is the difference between instant and delayed gratification. But remember, life is about balance. If you were even willing to cut back your caffeine consumption to every other day and invest the extra $728 a year in savings for the same 30-year time period at the same 6 percent compound interest rate, you would still be $57,000 wealthier in retirement.
And, as an added bonus, you might also have lower blood pressure from less caffeine intake.
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The opinions expressed are those of Gennaro Marsico and not necessarily those of Raymond James & Associates and subject to change at any time. Information contained herein was received from sources believed to be reliable, but accuracy is not guaranteed.
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