Tiny Expenses

Posted By: Dr. Frugal in Frugality on 06/06/2007 at 08:31:28

You might think you know where your money is going but once your budget is in place you'll likely be a little surprised to see how your tiny expenses add up in the period of a month. Small cash expenditures add up to very large sums of money. My personal weakness is Starbucks and even though I know $4 is too much for coffee everyday it wasn't until I actually saw I was spending over $100/month just for coffee that it really sunk in.

Think about this: if you were able to save just $300 a month instead of spending it on tiny expenses starting at age 30, by the time you hit 65 and were ready to retire guess how much that would be worth assuming a meager 5% return...that's right over $300,000. Still need that six-pack·


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