Want to effortlessly increase your wealth by over $2.3 million in 30 years through small and intentional behavioral changes? You’re in the right spot.
The following estimates assume that costs diverted through the following actions, invested overtime for 30 years, coupled with an 8% return rate which compounds quarterly may return the following outcomes.
As a reminder, content provided through BTI is not considered financial advise and is intended for entertainment and educational purposes.
Don’t Spend Money On Fridays
It is estimated that the average American spends $73 every Friday on nonessentials; that’s $292 dollars per month. If you were to invest this overtime you may return $433k over 30 years.
Scale Back Your Trips to the Barista
If I go and get coffee, odds are I’m going to treat myself. Extra espresso, yes I want whipped cream, and of course make it a large; excuse me, a venti. After tip you are probably looking at minimum $10 per coffee trip. If you eliminate three trips to the coffee ship every week, you’ll free up $30 per week or $120 per month which could be invested. Over the course of 30 years it is estimated this would return upwards of $178k.
Avoid Car Payments
There is nothing I loathe more than buying a car. Even if buying a used car, every single day you own that vehicle you’re going to be losing money on it. Let’s assume that a car payment conservatively costs $350 per month but you avoid that payment by paying cash or continuing to drive your preexisting vehicle.
If you were to invest that $350 per month in the market versus on a monthly vehicle payment you’d be looking at about a $519k return over thirty years in the market.
Vehicles are a necessary evil and while it might not be feasible to assume you’ll never have a car payment, simply being mindful of limiting your car payments to 3-5 year periods or being mindful that you don’t want to sustain permanent and long-term care payments overtime helps as a great starting point for you to begin saving money and investing the difference.
Buy Off Brand
It’s estimated that buying off brand or genetic products can produce cost savings up to 20%-30%. I spend about $300 per week on groceries but am very religious about buying generic products and pocketing the cost savings.
If I assume my grocery bill will be (at a midpoint) 25% percent higher if I were to buy name brand I’d spend $75 more per week or $300 more per month on groceries. If I continue to buy off brand, investing the extra $300 per month in cost savings, I may expect a $445k return in 30 years if that money were to be invested in the market.
Scale Back Eating Out
Eating out is another necessary item that sometimes you just simply have to do; and if you’re like me, very much so look forward to some days! It might help you keep whatever peace of mind you have left after work, kids, and everything else.
But let’s say that you scaled back very slightly, the number of lunches and dinners for which you eat out. If you reduce your weekly eating out by 2 lunches (estimated at $30 each; $60 total) and 1 dinner (valued at $75 per week) you would reduce your weekly spending by $135 per week; or $540 per month. Invested over the course of 30 years may result in $801k in the market.
Let’s recap and revisit the math. If you were to adopt the following behavioral changes, AND were INTENTIONAL investing the cost savings of diverting spending on these items into an investment account overtime, you may realize the following financial gains over the course of 30 years resulting in a wealth income increase by over $2.3 million dollars.
Let’s recap the math by adopting the following behavioral changes and investing the difference overtime across 30 years:
Don’t Spend Money On Fridays: $433k
Scaling Back Your Coffee: $178k
Avoid Car Payments: $519k
Buying Off Brand: $445
Scaling Back Eating Out: $801k
Total Over 30 Years By Adopting These Minor Behavioral Changes: $2,376,000!
Where Do I Start?
Sometimes our clients report that they are apprehensive to invest, don't understand the process, and/or don't feel like they have enough capital to begin investing so they avoid it all together.
To be brutally honest, if this is your opinion, you couldn't be more wrong and this type of mentality is what is preventing you from growing your wealth.
A great tool for you to consider is Acorns. Acorns automatically invests your spare change from everyday purchases, like gas and groceries, while you go about your day. When you sign up to their Round-Ups® feature, your spare change gets automatically invested into one of their diversified, ETF portfolios, built by experts.
Acorn offers an affordable monthly subscription for individuals at $3 per month, and a family rate of $5 per month. The individual subscription is an all-in-one investment, retirement, and checking, plus a metal debit card, bonus investments, money advice, and more. The family subscription offers investment accounts for kids, plus personal investment, retirement, and checking accounts, and exclusive offers and content.
Don't wait another minute to start investing! Every day you avoid making changes to your financial future results in lost wealth.
Sign up for Acorn and start growing your wealth! Click the link below to sign up and learn more.
Breakthrough Innovations LLC
Financial Literacy & Financial Coaching & Financial Mentoring https://www.breakthroughinnovations.net/
The sky is the limit and a sound financial future allows you the ability and confidence to go after the things you want.
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