Let us be honest for a second, we each have our own spending weaknesses where we spend way too much money on certain things. The weakness can range from something innocent such as eating out for lunch everyday or getting your $5 morning latte. Or it can be something addicting such as smoking or the lottery. For me it’s the milkshakes I spend my blow money on at Steak ‘n Shake or Chick-Fil-A. It might seem like no big deal, $5 dollars here, and $5 there. But have you ever considered how much it is really costing you?
What if you stopped the $5 daily habit for five days a week and instead put that amount in good quality investments? That means you would be investing approximately $100 a month. If your investments earned an average of 10% a year, after 10 years you would have ~$20,000, or enough to purchase a nice automobile. If you did it for 20 years, you would have almost $80,000. What if you did it for 30 years? A little over $240,000 would be in your bank account. For 40 years? Almost $700,000!
Now I am not saying you can never have any fun by eating out for lunch or getting your morning cup of coffee. But what I am saying is that by taking a critical look at where your money is going everyday, you might realize that your guilty pleasure, in my case my milkshakes, is costing you more than just $5. So instead of eating out for lunch everyday, why not instead pack leftovers from last night’s dinner two or three times a week? Or start making your own coffee at home in the morning? Doing so will not change the quality of your life much, but it could impact how much money you save in the future.
So what $5 habits have you changed in the past? What did you do differently and how much money did you save? Please let me know in the comments below.