There are a lot of tools in our personal finance arsenal we have access to that will allow us to be financially successful. The key is to do a little bit of everything. Save money, invest money, etc. It’s all important if you want to have a financially stable life, or perhaps a financially booming life.
An investment app called Acorns released findings from a recent study about what Americans spend their money on. The findings showed that 1/3 of Americans spend more money on coffee than they invest. Yes, that’s right; coffee gains more Americans attention than their portfolio. The problem with that being that you cannot compound interest in your cappuccino, you must invest money alongside of spending it.
Here’s the breakdown on what spending your money on coffee looks like: if you spend $20 per week on coffee, that accumulates to an annual coffee expenditure of $1,040. Now, if you were to invest that same $20 per week starting at the age of 25 with a 6 percent rate of return, that would yield around $170,000 by the age of 65. Wake up and smell the coffee, people! It’s never too late to start saving. Finding little things you can do without, like the $20 per week on coffee, and investing that chunk of change rather than spending it, is a great start to saving and investing in you financial future!