Would You Give Up Coffee for $500,000? [POLL]
There is nothing better in the morning than a delicious cup of gourmet coffee from your favorite coffee house, but at what cost?
Yesterday, Starbucks started raising prices in various stores around the country by 1%. Not a huge jump, but it could add up to around $15 extra per year if you drink there every day.
Well . . . CBS News took that Starbucks math to a whole different level. Here's what they figured out.
If you buy one $4 latte a day, you're spending $1,460 per year on Starbucks. After five years, that's $7,300.
Let's say you invested that $4 every day instead, in an account with an average return of 9%. After 10 years, you could have enough to buy a car. And at 40 years, the money you saved from coffee would be worth $634,428.
But if you don't want to give up Starbucks, here's another alternative. You could buy bags of Starbucks French roast and brew them yourself. You can also add milk to make lattes.
That will reduce your budget to about $29-a-month . . . saving you $91 over going to an actual Starbucks.
Over 40 years, if you invested the difference, you'd have $481,108. Even if you don't invest it, just saving the $91-a-month would mean you'll end the year $1,092 richer . . . and have an extra $43,680 when you retire in 40 years.
Look...one way or another we have to spend money on coffee. It is one of the small joys in life, right?