# How Much Does That Cup of Coffee Really Cost?

So how much does a daily \$2 cup of coffee really cost?

In order to do the math we will assume you work until you qualify for old age security, which could be 67. And assume a conservative return of 6.5%. Since you will not make a \$2 contribution every day we’ll assume monthly instead. So, let’s look at two scenarios:

• 20 years old? \$60x(12x47)x6.5=\$224,524
• 25 years old? \$60x12x42)x6.5=\$159,284

The sooner you start the bigger the difference, this is called the time value of money.

Now what about a pack of cigarettes or lunch out every day or ?? Let’s try \$10 per day (lunch or smokes) and see what that looks like. ARE YOU READY FOR IT?

• 20 years old? \$300x(12x47)x6.5=\$1,122,62
• 25 years old? \$300x(12x42)x6.5=\$796,420

Wow, think about what you could live without to make this work. I can help with the budgeting and the investing to get you there. If you are older do not despair it is never too late to start, you will have different results, but you will still benefit from investing.