A Cup a Day — 40 Years in the Stock Market

What would happen if you invested your morning cup of coffee?

I ran out of coffee filters today

So I decided to work from a coffee shop. If I don’t have my cup(s) each day, I don’t know how I’d function.

While I waited for it to cool down, I thought about what that coffee represents in other terms — not just a temporary jolt of energy or headache relief.

My cup of coffee cost $2.45

That’s not so bad. I could probably scoop that up in quarters on the sidewalk if I walked around the block a few times.

But I wondered how it would add up if I invested the amount I spent at Starbucks every day.

I ran the numbers

Nothing complicated — a regular black coffee ($2.45 USD) times the number of workdays in a year (261 days) times the expected return from the stock market (7% annual historical average).

To make it even easier, I assumed you would invest all your money at the end of each year.

Here’s what your account value would look like:

After day 1— $2.45

After year 1 — $1,323.66

After year 5 — $4,574.17

After year 10 — $10,092.82

After year 20 — $28,689.04

After year 30 — $65,270.61

After year 40 — $137,232.09

Over 40 years, you’d invest roughly $26,000 and your total account value would be over $137,000!

It’s crazy to think $2.45 cups of coffee can turn into that much money over your lifetime. But it’s not unrealistic. Remember, 7% annual return is the stock market’s historical average.

I’m not advocating for skipping your morning coffee. I probably couldn’t have even written this 2 minute blog without it. But it’s never too early to start investing.

Given enough time, even something small can grow to be something big.

Sincerely,

The Grain Team

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