The Latte Habit

I have a friend who loves caffe lattes.  She gets one in the morning on her way to work and another at lunch.  The cost is $3.50 each which means she is spending $7.00 per day for coffee, 5 days a week.  On a monthly basis this works out to be about $152.00 per month. 

If she were to invest the money she's currently consuming on lattes, she may be able to accumulate a sizable sum over time.  If she invested her $152.00 per month latte allowance in an account earning 7%, at the end of 25 years she would have accumulated $123,849.00.

I'm NOT advocating that you give up coffee or lattes.  I simply want to illustrate that it doesn't take much effort to accumulate a potentially large sum if you have discipline to save and invest.

This is a hypothetical example for illustrative purposes only and is not representative of any specific investment.