Skipping Starbucks Could Fund Your Retirement

[Play The Man]

http://theothermccain.com/2011/07/12...up-of-poverty/

As a registered investment advisor, Steve Orr is used to juggling millions, but he knows those millions started out as pennies.
“It’s the little things,” said Orr, president and owner of the Orr Financial Group. “It’s the dollar here, two dollars there things that we pick up every day that start to add up. The insidious thing is that it still doesn’t add up to so much that we think it could make a difference in our futures, because we only see those expenses in terms of the dollars we spend, but not the dollars – plus the interest – we could be earning on them.” . . .
To illustrate that, Orr can demonstrate how simple, everyday expenses – when eliminated – can turn into big bucks down the road.
For instance, the daily specialty coffee from the local coffee stand costs about $3.95, depending on where you live in the U.S. If you got one every day of the week for about 40 weeks out of the year for the typical 35 year employment span between ages 25 and 60, it would cost you about $27,650 over that 35 years.
The formula looks like this:

Coffee or Latte — $3.95 X 5 = $19.75 X 40 = $790 X 35 = $27,650
Energy shot — $3.99 X 5 = $19.95 X 40 = $798 X 35 = $27,930
Muffin — $3 X 5 = $15 X 40 = $600 X 35 = $21,000
Lunch — $8 X 5 = $40 X 40 = $1,600 X 35 = $56,000

“If you were to put the total of all these items into your 401(k) or Roth IRA or any other type of retirement investment vehicle every year for 35 years and you earned a minimum of 3 percent interest every year on that money, you’d have an extra $246,560 in your retirement account at the end of that 35 years,” Orr said.

[Bonnie]

There's nothing like seeing the numbers... Wow!

My little sister loves Starbucks! But I doubt even if I showed her this, she'd give it up.

I'd love to see the numbers of what people spend on scratch offs and the lottos every week to see what those $1, $2, $5, $10, etc... add up to in a year for "x" amount of years. Bet those numbers would add up to a nice retirement!

Every penny definitely counts....

Jessica's health class teacher had all the students calculate how much money they could save in a lifetime by NOT smoking.

The numbers were incredible!!!!!

[Bonnie]

Originally Posted by DonnaMaria

Every penny definitely counts....

Jessica's health class teacher had all the students calculate how much money they could save in a lifetime by NOT smoking.

The numbers were incredible!!!!!

I hope that made an impact on Jessica! When we've tried telling our mom how much money she could save by not smoking, she just gets mad at us.

I never go to Starbucks. I guess I'm ready to retire.
Oh wait, I'm still poor. Dang!

I've never been to starbucks and never had a latte. guess i'll be retiring soon, never mind i drive an Tahoe so my SUV guzzles my savings.

Originally Posted by Bonnie

I hope that made an impact on Jessica! When we've tried telling our mom how much money she could save by not smoking, she just gets mad at us.

Yeah I think the key is to tell them BEFORE they have already developed the habit! Otherwise you might be asking for trouble!

We kept telling my Dad about the risks of smoking ( but exactly HOW do you get a firefighter to STOP is beyond me. Most of them do ) but nothing worked quite like a two week stay in the hospital because he needed a bypass!

Oh..........those poor nurses.............. God bless them!

Originally Posted by County Mike

I never go to Starbucks. I guess I'm ready to retire.
Oh wait, I'm still poor. Dang!

Yeah..........I make mine at home! There isn't even a Starbucks near by!

Originally Posted by Twinsmama

I've never been to starbucks and never had a latte. guess i'll be retiring soon, never mind i drive an Tahoe so my SUV guzzles my savings.

Ford 150! It seems like I get 5 miles to the gallon!

My Avalanche gets 12 mpg so I bought a used Scion XB (looks like a box) but it gets 30 mpg. I pay $120/month to have this car but it saves me about $200 per month in gas. I still have a truck when I need it but all my regular running around is in the box car.