A Coffee A Day Makes Your Savings Go Away

It is no surprise that the average American likes their coffee.  According to Acorns, the average yearly spending on Coffee alone tops $1,100 per year.  That is amazing, but to really understand how this impacts the average person take a look at the table Motley Fool put together:

So let’s see what several decades of investing might do for your money. Acorns reports that the average American spends about $1,100 per year on coffee, which breaks down to roughly $92 a month. Now, here’s what would happen if you were to invest that $92 a month over time rather than gulp it down in the form a morning pick-me-up.

If You Start Investing $92 a Month at Age: Here’s What You’ll Have by Age 65 (Assumes an 8% Average Annual Return):
25 $286,000
30 $190,000
35 $125,000
40 $81,000
45 $50,000
50 $30,000
55 $16,000


Wow, for young Americans, the cost of their Coffee habit is over $286,00.  This is also a perfect example of a savings idea to help you becoming Thrifty Rich.  We are not going to give up coffee, but giving up a few cups a day, skipping Starbucks, or simply making your own at home could have a big impact.  The more you change the closer you get to the $286,000.

What can you change and how much of an impact will it have over the long run?

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