if you've ever searched how to become rich or how to retire early the number one advice from all Finance Bros is to create a budget and save more money and when it comes to saving money the first thing you'll hear is stop buying your morning coffee not switching your highin mortgage to a lower one or reducing your monthly car payments on your fancy car the main culprit between you and your Financial Freedom is this guy because apparently your $4 Starbucks latte is the reason why you're not already a millionaire and because I've got nothing better
to do with my spare time I thought I'd put it to the test and make a video on it is my $4 latte stopping me from being a millionaire well let's find out to answer this existential question I'll be the subject in my own case study so I started my first proper job at 21 and by the looks of it I'll be working till the retirement age of 66 unless people decide to fund me in the form of subscriptions now I don't go Starbucks every day but let's assume I did and let's assume my $4
latte stays the same price throughout my working life in reality it probably won't because of inflation but let's roll with it for the sake of Simplicity over a year that's 1,000 460 multiplied over my working life of 45 years that amounts to $65,500 that alone is a lot of money but not quite the million I was promised by the finance gurus but here is where it gets interesting what if I invested the 1,460 every year from the time I started working until retirement so I went to Google and clicked on the first link for compound
interest calculator if I invested this amount every year and managed to achieve a 5% annual return over 45 years that would compound to 250 53,000 but if somehow I managed to achieve a 10% return my 65,000 would compound to 1.3 million so maybe the finance Bros weren't entirely wrong however this has many flaws we're assuming a 10% return every year and in reality that's unlikely to happen unless you're this guy and if so hey Warren thanks for watching don't forget to hit that subscribe button this also doesn't adjust for inflation meaning a million 45 years
will be worth less than what it is today and finally you have to wait till you're 66 to Be a Millionaire on paper or you can just go Starbucks and enjoy that coffee the choice is yours
