That ham-and-cheese, bag of chips and diet soda you bought for lunch during work is no big deal, right?
It’s just $11. Nothing more than a rounding error in your personal finances. Or is it? Let me phrase the question another way: Is eating lunch out two times a week worth losing out on a potential investment windfall of $88,000? Turns out the average North-American forks over $11.14 twice a week for lunch, according to a Visa survey, but if they skipped that meal and redirected the $1,043 spent each year into an investment account earning 6%, they would have an estimated savings of $88,500 thirty years later.
This personal finance math lesson shows how seemingly inexpensive, everyday indulgences can add up to a big hit to your net worth without you even knowing it. “Small changes in your life can add up to a bigger nest egg.” Most people are thinking about the big things, like not going on vacation or not buying a new car. But it is really the little daily things that you do on a regular basis that can really add up.”
And the amount of money North-Americans have spent eating outside the home has been on the rise. Households spent $3,008, or about $8.35 a day, on average, eating out in 2015. That was up nearly 15 percent from 2013, according to Statistics. Eating out accounted for 43% of the average $7,023 households spent on food in 2015. Investing $3,008 each year in an account earning 6% would add up 30 years later to an account balance of more than $250,000. Similarly, investing $3.50 a day for 30 years instead of buying a latte would add up to savings of nearly $107,000. Give up less by spending smarter. Examine your spending motives. Do a spending audit. Like, Review a few months worth of credit card, checking or savings statements. Go through them purchase by purchase and find out where your money is going.
Article credit: USA TODAY
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