If you follow my blog, you’ll know that i love coffee.
I used to scrimped on the money i spent on coffee. Because i wanted to reduce spending, so that i can invest those money i scrimped.
I don’t exactly buy coffee from starbucks like coffeeshop everyday. Maybe once or twice a week is good enough for me.
How much can i save if i don’t buy coffee for a year from starbucks?
Average $7 x twice a week x 52 weeks = $728 per year/ $60.67 per month
I can invest an additional $728 per year, for 20 years, here is how much i will have.
That’s quite a sum of money, not too little, not too much either.
But that is 20years without coffeeeeee!! 😖
2 years ago, this is what i would have done.
These days, i try not to scrimp on things i love.
Instead, what i do is think of how to increase my income by $60.67 per month.
Also in this blog, you will see that i always suggest asking for a pay raise. I did that last year and got $8k increment per year. That is an increment of $666.67 per month. I can get 10x more coffee with the increase.
With this increment, i get to have my latte, and an extra $600 monthly for investing!
Let’s see how much i’ll end up with by investing monthly for 10 years.
What a difference! $26k vs $94k!
Now which would you prefer?
Increase income or decrease spending?
I think i will get a lot of flak for saying this. I know that not every company will give you a raise when you ask for it, and it also depends on the type of work that you are doing.
If you work a blue collar job, the best form of investing is, invest in yourself. Pick up a skill, be good at it and generate more income from that.
If you work a white collar job, and you know you are not being paid market rate, and you are an average to good performer at work, just ask for a raise. If your company can’t afford to pay you at market rate, then move on, unless your company is going through some cost cutting measures.(it’s time to abandon this sinking ship too)
A good company will know that retaining talents is much more cheaper than hiring new talents. So don’t be afraid to ask.
The worse is you get a no, and you know where you stand in this company.
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