Have you heard of that the money you spend on coffee daily can make you wealthy if you use it properly? This is a common word among financial evangelists and motivational speakers but not left out are business gurus who want you to believe that they made thier wealth by not spending money.
It is the becoming wealthy clause for me because if Americans earning over $200k live hand to mouth, then what is the hope for the common man who is earning $30k annually?
These financial advisors have looked at everything in a person’s life only to harmer on the small expenses as a reason for being financially poor. They target the small things a person buy and that is why they make you think that keeping the coffee money will make you a billionaire overtime. They could have also mentioned that the food you cook at home can hinder you from hitting the billionaire status.
If we will be sincere, taking your daily Starbucks, of that cup of Joe will not harm in any way financially. For me, I think the reason why this financial gurus and trend riders focus on coffee when discussing financial success is because it reaches a wider audience than any other thing since 2/3 of the population in developed countries take coffee.
Coffee is that one cup that get people through their daily stress but how else do you receive a share of blame when looking for financial advise if your daily activity isn’t questioned. Also that latte is a good marketing topic for the seller's video, book, or upcoming seminar.
They sell your coffee mistake to you by garnishing it with compound interest but is this true? If you take a $5 coffee for 7 says that will be $35. If you decide to invest in on a 10% annual interest everyday for 40 years, then you are just about to become a millionaire. This is based on the average return for an investor in the S&P 500 and this isn't a certain amount for anyone since it is the average, also this can change since the market isn't predictable.
If we are going to look at the Coffee money as a major drive to becoming a millionaire in 40 years possibly for retirement we also need to consider taxes and inflation rate over the period. In the past, cutting minor expenses to be able to meet major financial goals used to be good advice but this has changed now as the price of everything has gone extremely high that cutting down on something as little as a coffee would not make any significant impact.
People who have work high paying jobs have increased bills and live in extremely expensive places so the money they make isn't enough to take them through their daily lives while those who live below minimum wage are spending their income in paying for loans, and other expenses, so cutting down coffee spending isn't going to make anyone a billionaire.
In an era where the cost of living continues to surge and major financial commitments loom large, the impact of forgoing a cup of coffee on one's journey to wealth is debatable. The narrative oversimplifies the complex financial landscapes that individuals navigate, where high-earning professionals find themselves entangled in substantial bills and the challenges of residing in pricey locales.
The evolution of financial advice beckons us to adopt a more holistic approach—one that acknowledges the shifting dynamics of our economic landscape. Rather than fixating on micro-expenditures, a comprehensive financial strategy should embrace a realistic understanding of the myriad factors influencing individual financial trajectories. After all, in the grand scheme of wealth creation, the aroma of a morning coffee might be just a small whiff in the expansive universe of financial decisions.