I’m a pretty thirty guy, any one who visits this site can see that. I find deals, I cut cost, I do what I can to keep my money in my pockets. As good as I try to be I do have one weakness, lunch. I always go out to buy lunch when I am working. I never brown bag it, ever. I know I should, but I like hot food, I like pizza, I like Tacos, I like wraps.
You might be saying, “What’s the big deal?” A fair question to be sure. Here is the answer: I am wasting money, a lot of money. Sure 6 bucks here, 9 bucks there, but it all adds up and quickly. Let’s crunch some number.
Let’s say you are a junk food junkie: Mickey D’s, Burger King, Taco Bell. Every lunch break you go out and grab a bite from one of these places. The average cost of your meal is about $4.50.
- Thats’ about $23 a week
- Or $92 a month
- Or $1104 a year!
I don’t buy from fast food places, I like the slightly high end of the take out spectrum, Chipolte, Panera, local delis. My meals average to be about $7 a visit.
- That’s $28 a week
- Or $112 a month
- Or $1344 a year!
What I could do with $1344 a year. I could go on a nice vacation, I could invest it in Peer to peer lending or the stock market. That much money properly invested over a three year period could yield a really nice nest egg.
Here is an eaxmple:
- Let’s say I brown bag it, food at the super market isn’t free, let’s say it cost me $344 a year for that food.
- I take the $1000 in savings and invest it in a high yielding dividend stock, like Verizon
- I buy 20 shares of Verizon stock at 50 dollars a share
- After three years I will have about 60 shares.
- Let’s suppose that in 5 years Verizon stock will be worth 75 a share. If that is the case my 60 shares will be worth $4500!
Nearly $5000 in my pocket because I made the smart decision and brought my lunch and followed the decision up with another smart decision to invest. Imagine how much you would have if you did that for 10 years? How much money am I leaving on the table? I’ve tried not to think about it, but the time has come to face the music. I need to change, I need to brown bag it and if you think about it you probably should to.