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...and how long do you want to work so you can have it?
So, I'm assuming you spend at least $5 per day on lunch if you eat out. OR, you spend that much on a coffee drink or sodas or a beer with the guys? I'm talking JUST $5 per day. What I just found out is really changing my perspective on those 'small, everyday purchases' that so many people make without even thinking.
Here's how the math works out: spending just $5 per day will cost you $1,825 per year OR $54,750 over a 30-year career. If you earn around a $50,000 salary, that's an entire YEAR of work just to pay for that $5 worth of daily discretionary spending. And if you make less than $50,000? You're gonna work a couple extra years to pay for it.
Now, consider this: if you SAVED that $5 per day, you could not only retire a year earlier, BUT due to compound interest on that $1,825 it could be much sooner. Saving just $5 per day in a 401K will grow to $178,856 over 30 years, assuming 7 percent annual returns. And if your employer does matching contributions, that can grow to almost twice that! That's HUGE!
So, the next time you're thinking about lunch... try the junior burger on the menu and lose the fries and drink. OR bring you lunch. OR make your own coffee at home. OR drink water, not soda.
I don't know about you, but I'm thinking retiring early sure doesn't suck!