I listen to Dave Ramsey a lot on my way home from work since he has a show on XM radio. He is so great!

Nicole

Never thought that Starbucks could add up so much! I don’t drink Starbucks that often, but after reading your post I think I will try and cut certain ‘unnecessary’ things and invest that money into something that will bring me back better return.

Happy Holidays!

After getting my accounts straightened out, I had learned to be much more conscious. I started shopping only once a week, with a clear idea in mind what I needed, and with an eye on good deals (as opposed to whatever looked good). That made a HUGE difference.

I also learned that when we have a clear goal, we can save more money than we may think is possible. It all goes into the direction of THE SIMPLE LIVING GUIDE, a book that inspires me to this day.

Thanks again for the reminder,
happy holidays everyone! And don’t be too hard on yourself if you drink a latte with friends every now and then – we’re supposed to live life too

Thanks for your detailed comment! I agree with many things you are saying.

By no means was I trying to tell people to boycott Starbucks- I went there today, and spend many of my lunch breaks drinking tea and doing work/reading there.

Like you, I also contribute a fair amount to my 401(k) each month and am still able to have my occasional fix. I do this for the same reasons as you: to re-charge, get fresh air and a bit of caffeine to keep me focused at work. Also, since I have my own business I use Starbucks as a place to do work and save my receipts for my accountant at tax time.

The point of this post was to show how little things become big things over time. It was also to demonstrate (especially to women) the importance of contributing to a 401(k) at a young age. Living in Chicago, it is SO easy to spend way too much money on cabs, $10 drinks and lattes then wonder where your money went. My point was just to be aware of where things are going.

I agree on the TV too- I waited a few years before I got mine and was able to pay for it in cash.

After seeing that you could save $15k over 10 years, are you going to cut out your Starbucks consumption for the next year and put that into a savings account? People do this type of math with smoking too and for those smoking a $5 pack a day, wow! It is analogous to going on a diet; cutting costs–>cutting weight. While the chocolate bar from time to time isn’t great for you, it really is the content, and proportion of your other meals that drive the bulk of the results.

I’d also say that getting a daily drink from Starbucks has side benefits; taking a break from work, clearing your mind, and getting the energy from the caffeine and the walk. Bottom line: daily serenity and peace of mind. That is why I’d say most people aren’t going to cut out Starbucks entirely even though it means $15k after 10 years.

I think many financially savvy people look beyond their Starbucks fixes to cut corners. Let’s assume a salary of $40,ooo. If that person set’s aside 5% for their 401(k) that comes to $167 a month while 10% comes to $333. Once that money is taken out, you never see it and learn to live within the reoccurring paycheck. (Disclaimer: I contribute 8% to 401(k) and get my Caribou fix regularly).

I also believe in the “60% Solution”. Essentially it comes down to the gap between lifestyle and income. MSN’s article is pretty straight forward regarding the 60% solution without getting technical.

I definitely agree with you in concept; don’t make “necessary” purchases which are actually “luxury” purchases. Find out what are true necessities and luxuries and cut the luxuries. I kept an old 19″ TV for years before I decided to purchase a fancy 32″ HDTV. It was a luxury that I put off for a very long time, recognizing it as a luxury and not a necessity.