So, I know you may be wondering how drinking more water can help you retire. Well, here is the concept; stay with me for a moment.
In over a decade’s experience of helping individuals plan for retirement, I have found that most people struggle with how they are going to put money away for their big retirement day. The power to do this is found in the strength of numbers.
Being disciplined with a small amount of money over a long period of time can yield powerful results. Being able to retire isn’t about earning a lot of money, it’s about being smart with the money you have. Some of my most well off clients never came close to earning a six-figure income, but are very well off in retirement.
With that being said, please allow me to illustrate an example:
Let’s look at beverage consumption. I pay close attention to how Americans spend their
money. I have used this data to create and find opportunity to improve our financial
situation without adding any additional expense.
Presented below is a case study I performed. Let us focus on beverage consumption. We
have all heard and seen research on the importance of drinking water. We also know
that water is the most abundant resource on the planet. So, why not create a retirement
nest egg from it?
Here we go!
Let’s say that you are spending $10 / day on beverages. You may wonder why I chose
Let us say you start your day off by purchasing a cup of coffee from your favorite coffee-
house. I estimate $5.
Next, you try to drink more water because you know the benefits; you purchase two
bottled waters for $1.50/bottle. I estimate $3 dollars.
Now, you hit a restaurant today for one of your meals. You ordered your food with a
soda and for this example, I estimate that it increased your order by $2.
That’s $10/ day. If by chance you did this every day, that would be
$300 for the month that was spent on beverage consumption.
Now, let’s say instead of spending $300/month on beverages, you purchased a travel-friendly water bottle and a water filter container at home. I have found that you can locate a water fountain or cooler in just about every office, gym, and public place.
Instead of purchasing beverages, you could simply fill your water bottle wherever you
go: the office, the gym, the mall, or just about anywhere! By doing this you would save
$300 / month.
Why is this significant? Let me show you!
Allow me to introduce you to a concept called Dollar Cost Averaging. Simply put… it is
the act of investing a fixed dollar amount over consistent time intervals. For this
illustration, let’s say you saved $300/month by drinking the water that is freely
available to you, and then you began to invest that savings.
Now, let’s look at these variables:
A) $300/month invested
B) Earning an average of 7% (but where do I earn 7% a year? Contact us to discuss)
**Keep in mind “average” means some years less and some years more, but over a long
period of time the portfolio averages 7%
C) Let’s say you did this for 30 years
Your grand total for drinking water would be $368,426.25!!!!!
That is the value of compound interest and consistent discipline.
Where else could you save money? Could you reduce your cable bill, cell phone bill, or
fast food consumption? The power lies within your spending habits.
RECAP! Pay close attention to where you spend your money; the smallest amounts can
make a huge difference. Discover now where you can save and consistently put your
money to work.
You will be HEALTHIER and WEALTHIER.
To learn more about Perry, check out his bio.
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