I've been looking at all my opportunities to reduce my household budget and decided to check out how much my Tim Horton's coffee habit is costing me.
I basically buy 2 coffees per day (weekdays and weekends), therefore my 2 coffee per day habit (at $1.60 per cup) costs me $998.40 per year. So then I thought I'd throw it into my compound interest / savings calculator. Assuming coffee prices go up 2% per year, and instead of buying coffee I put that amount into a tax-deferred investment (6% return), I'd end up with the following savings:
After 10 years = $15,129.87
After 20 years = $45,538.51
After 30 years = $104,034.71
After 40 years = $213,715.98
After 45 years = $299,678.80 That's the cost of a decent house
Any other coffee addicts here? How much is your habit costing you?