1.2 Million Dollar Lunch

I often have clients tell me that they do not have enough money to start saving for retirement. I know most of you know, should I start saving, but just do not know where to get money from. But I would argue that if you can find only $ 5 a day can make a huge impact on your retirement savings.

You may be thinking "that's great, but we do not have the $ 5 a day back." I would like to challenge you to really take a look at. All this is something else. As our society is set up now, it is easy to waste a few dollars here and a few dollars there. Whether it's grabbing a soft drink or candy bar, when you stop for gas or grabbing a coffee in Starbucks, everything adds up. One of the biggest culprits, then go to lunch every day you work. It is easy to spend between six and ten dollars in restaurants for dinner. If you brought your lunch to work with you from home, it probably only cost 1-2 dollars. So, it's easy to over $ 5 a day right there.

This may be something else for you, but most of us have things we like to waste money. If you think you ever waste money, I would challenge you to write down everything you money for one week. I have a feeling you will find some of the fluff out there that could be reduced if retirement saving is a priority.

Let's see how many are eating lunch every day can cost you. If you were to save $ 5 each day and invested it in the good growth stock mutual fund, compound interest will work in your favor. Depending on your age, it can work for you in a huge way. If you invested $ 5 per day (about $ 110 per month), starting 25 years ago, it will turn into about $ 1,294,000 to 65 years! Those are some expensive dinner! Even if you come to the age of 35, he will turn into $ 384,000 by 65 years! Starting at 45 years, $ 108,800 and 65 years of age.

Just think about those numbers, the next time you're too lazy to his lunch. Every time you spend money on one thing, you lose the ability to use it for something (a fancy word, it is an opportunity cost). I'm not saying you should never play with money, but you must have your priorities straight. I know, eat at the restaurant is much better than eating lunch meat sandwiches every day, but I do not think that it is only 1.2 million dollars, good!