The original post can be found here: Debt Free
Several years ago when we finally decided to take control of our money, we took a close look at our spending. We were absolutely blown away when we realized how much we were spending on dining out. On average, we were spending well over $300/monthÖfor just the 2 of us.
You may spend more or less. But letís work with this figure for now. Letís say that from age 25-65 we spent $300 per month on dining out. This is really a conservative figure because we are assuming that those costs would never rise and that we would never be spending money on kidsí meals out.
Spending $300 per month for 40 years equals $144,000 spent on dining out! That number blew me away, and I hope it blows you away too.
Now letís imagine that we invested that same amount. $300 per month invested for 40 years with an average annual return of 12% would equal $3,092,912.61. Are you kidding me?? Letís say Iím overestimating the rate of return on the investments. What if we only averaged 8% annual return, which is much lower than the stock marketís 50 year average. That would still be $1,007,211.74!
But letís be honest here, I love dining out. Who doesnít? So Iím not suggesting that you never dine out. I am, however, challenging you to consider how you are spending your money.
We have cut our restaurant budget down to $140/month. Thatís $160 per month less than we used to spend. Letís say that we invest just the extra $160 per month for the next 40 years. At an average 12% annual return, that will give us an extra $1,649,553.39.
Well over a 1.5 million dollars earned for retirement simply by investing our saved restaurant money!
And what did we sacrifice for it? Not muchÖwe still go out for dinner at least once per week.
Small choices and sacrifices can add up to huge results. Instead of spending mindlessly, you must be conscious of your choices if you want to win with money. Take the time to sit down and evaluate the amount your family is spending on restaurants. You could literally be eating away your future.
Yours In Freedom,
Join The ConversationÖby how much will you commit to reducing your restaurant budget?
Are You Eating Away Your Future?
May 5th, 2011 at 08:03 am