THE LIFE

March 9th, 2011

6 Little Things That Cost a Lot

starbucks

(CBS Money Watch) We all do it. We spend little amounts regularly on things like lunch, Starbucks lattes, manicures, golf — maybe even for having a pizza delivered while you watch a weekly game on TV.

These seem like reasonable decisions about relatively small expenses. It’s hard to imagine how much they add up.

The harsh reality is that each dollar that’s spent today isn’t available for something else tomorrow. And these little purchases have a way of robbing us of the things we really want.

Why? Most of us haven’t stopped to consider whether that daily latte is truly precious to our well-being, or if it’s just a habit. If it’s precious, it’s worth doing — at least part of the time. But is it worth giving up the convertible Mustang that all those cups of coffee could otherwise have purchased?

These are actually the trade-offs we make when we don’t look at the long-term costs of niggling day-to-day expenses. The chart below makes the trade-offs clearer by providing a 10-year and 30-year cost.

The presumption is that if you hadn’t spent this money, you would have saved it and earned an average of 8% on your investments. The expense figures are estimates, of course. Things like golf green fees can vary widely. And your personal money pits are probably different — maybe you buy songs or videos each week, or regularly drop $10 to add games to your iPad.

That’s not really the point. You can probably relate to the notion of $20 or two inexplicably dropping out of your pocket for things you never really focused on buying. When you see how those little things add up, you might choose to pay more attention.

What’s your money pit? Have you ever tried to calculate the long-term cost? If you want to play, use the comments section to say what you buy regularly and what it costs. I’ll do the math to let you know the long-term cost — and even work it out for whatever time frame you want. 18 years? Game on.

Expense………….today…….over 10 years…over 30 years

Pizza delivery………$25 a week….$18,661…………$158,731

Coffee/donut………$4 a day………$22,389…………$190,453

Smoking…………….$35 a week……$26,125………..$222,223

Manicure…………….$40 a week……$29,857……….$253,969

Lunch @ work……..$10 a day*……$37,322…………$317,462

Golf……………………$75 a week…..$55,983…………$634,924


About the Author

Socialtik Mag
Socialtik Mag is a progressive platform for young, aspiring professionals to express our views on the issues and ideas in the world around us. It’s the Gen-Y perspective of life in the new decade. In addition to the original content we produce, we post from sites around the internet to keep our peers aware of what’s positive, what’s fresh, and most importantly, what’s progressive.




 
 

 
3d rendering of handsets from an old vintage phone

How Do Small Collection Accounts Impact Your Credit Score?

Fortunately, there is one recent change to the world of credit scoring concerning small debts, which are sometimes called “nuisance” collection accounts. Fair Isaac, creator of the FICO score, has rolled out to all three cr...
by Socialtik Mag
236

 
 
OLYMPUS DIGITAL CAMERA

Creating a Personal Finance Statement

If you own a small business or are self-employed, this guide will help you track income and expenses on a regular basis. Entrepreneurs tend to create personal financial statements for one of two reasons. Either they love number...
by DeAndra Harrison
65

 
 
200398520-001

Is Marketing a Money Drain or Money Fountain?

Marketing is an essential part of running a business, often overlooked or poorly implemented due to busy-ness of the Owner, this gets looked upon as money draining out of the business. On the other hand, if done right and imple...
by DeAndra Harrison
85

 

 
fundamentals-of-pitching-to-investors

Perfect Pitch for an Investor’s Home Run

Angel investors can provide you not only with the money to take your small business to the next level, but also real-world experience, advice and a cache of industry connections. But are you giving investors the information t...
by DeAndra Harrison
84

 
 
new-car-wrapped-with-a-bow-300x213

Why Buy New Things When You Can Share Them?

The American dream typically centers around ownership. We dream about buying our first car or our first home. More ambitious dreamers target a second home for holiday getaways, or a private jet to whisk them away at a moment...
by Socialtik Mag
25

 



11 Comments


  1. Great article! The key (to earning financial freedom/stability) is foresight, or beginning with the end in mind. Little things can matter most!


  2. Helloo i like the way you post on your blog


  3. Your site is actually great. Many thanks for that.


  4. Helloo i like the way you post on your blog


  5. My brother-in-law joined a green smoke movement in his office so that he could get updated of alternative ways to smoke. In there, he got to know about e-cigarettes, and he was able to substitute the real cigarettes with electronic ones. The group would oftentimes share reviews about various e-cigarettes and would even share alternative lifestyles in order to quit smoking completely. Although at times, they would ‘treat’ themselves with nice Cuban cigars, which comes as a treat for reducing the consumption of cigarette sticks. Through the movement, he was able to reduce considerably his cigarette expenses and was able to save money from it. So far, from a little daily expense, he was able to save a few hundred dollars in a month.


  6. These are actually the trade-offs we make when we don’t look at the long-term costs of niggling day-to-day expenses. The chart below makes the trade-offs clearer by providing a 10-year and 30-year cost.


  7. Your web page is very chatty. It will be useful for all of us. You have done a perform. I will come here again to evaluate new up-dates. Thanks for publishing.


  8. Hello, i am glad to read the whole content of this blog and am very excited and happy to say that the webmaster has done a very good job here to put all the information content and information at one place.


  9. You should comment on the competition comparison of the blog. You can highlight it’s mind boggling. Your blog exploration/tour will broaden your conversions.


  10. If some one needs to be updated with hottest technologies then he must be pay a quick visit this web page and be up to date everyday.



Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Twitter Users
Enter your personal information in the form or sign in with your Twitter account by clicking the button below.


thru 9/26 - Fall Sale. 30% Off select styles. Disc