By Skyline On Monday, July 25 th, 2016 · In ,

FIELD NOTE: AUGUST 2016

THE COST OF YOUR COFFEE HABIT

image

82% of working Americans paid an average of $21.32 per week on coffee in 2013. While spending $4 on coffee every weekday may seem inconsequential, calculating opportunity costs reveals significant consequences. Coffee expenditures at the rate of $20 per week amounts to $1,040 per year. The same $4 per day invested in a Roth IRA would allow you to start retirement earlier by 3.26 years. While coffee may not be your guilty pleasure, it is worthwhile to calculate your
“inconsequential” daily expenditures so that you can spend money with intention.

Sources: Accounting Principles Workonomix Survery, 2013

image

* Assuming normal inflation rates and portfolio returns of 9% per year, a 25 year old earning $80,000 a year, and adding 10% of their income to a 401(k), would be able to accumulate $3.8 million in their retirement portfolio over 40 years of work history. $40,000 a year would be needed for 25 years of retirement. The same person who also added the money from their coffee budget to fund a Roth IRA would accumulate $4.3 million in their retirement portfolio over 40 years.

image
image
Second Quarter Market Review 2020

Second Quarter Market Review 2020

Operations Update

Operations Update

First Quarter Market Review 2020

First Quarter Market Review 2020

Field Note: January 2020

Field Note: January 2020

2019 Q4 Market Review

2019 Q4 Market Review

Field Note: October 2019

Field Note: October 2019

Third Quarter Market Review 2019

Third Quarter Market Review 2019

Field Note September 2019: Credit Scores

Field Note September 2019: Credit Scores