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How Pizza, Alcohol, Restaurants & Clubbing Can All Add Up to a $600,000 Retirement

How Pizza, Alcohol, Restaurants & Clubbing Can All Add Up to a $600,000 Retirement

Confused by the title? No, it wasn’t a typo. Pizza, alcohol, restaurants, clubbing and a few other lifestyle related expenses can actually add up to a lot more than $600,000 when you are ready to retire at the age of 65. How, you might ask? Consistent savings and the power of compound interest is how!

Take a look at this reverse engineered retirement savings calculator tool that shows you exactly how it works!

Let’s look at an example.

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A person is 25 years old.

He or she spends about $50 a month at Starbucks, for that morning latte before work. Then, there is the occasional breakfast, maybe at iHop, adding up to about $25 a month. The local food court close to their place of work calls out to them, making them spend another about $60 a month on sandwiches, nachos and what not.

Of course, there is the date that you have to take out to a restaurant, at about $75 a month. Don’t have a date? Maybe you have to spend $50 to cover charges at clubs, to meet that potential date.

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Movie tickets might be affordable but the popcorn isn’t exactly cheap now, is it? Let’s add another $30 a month for the visit to the cinemas.

Pizza seems a must, as always. Maybe another $35 for a couple of Pepperoni pizzas delivered to your home.

Like a little red or white now and then? A couple of decent wine bottles will set you back about $30 a month, at least.

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Let’s also not forget that squirt or sport-top water bottle that you pick up once in a while. At about a $1 a pop, let’s say you have a good water drinking habit and spend about $20 a month to keep yourself hydrated.

What do all these expenses add up to in a month? $375 is what. Do you think they are reasonable? Yes, no, maybe. Well, let’s say you say they are reasonable. Even if you do, let’s consider this. You dial back your spend on all the above items by 50%. You have $189 in monthly savings.

Now, let’s say you start investing these savings into blue chip equities, something that can easily earn you 8% a year, like many blue chips have for almost a decade now!

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What would you have at age 65, when you are ready to hang up your boots and relax, finally? How about $648,972. That’s exactly what you will have!

The average American retires with just $129,000 at age 65, a paltry sum that will not cover healthcare, accommodation and all the special-need expenses needed in the golden years.

Cutting back a little now is going to allow you to have a great retirement. Always remember, you are going to want to live just as well at age 65 as you do now.

If you are willing to cut back on your lifestyle expenses and invest those savings, what do you think you can save at age 65? $100,000, $500,000 or maybe even more than $1 Million? It is perfectly doable.

Try for yourself by using this interactive retirement savings calculator tool.

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Last Updated on August 20, 2018

30 Fun Things To Do With Your Friends Without Spending Much

30 Fun Things To Do With Your Friends Without Spending Much

Spending time with friends is, in and of itself, a great way to pass the time without spending a lot of money. But if you and your friends are used to going out to clubs, pubs or eateries together as your way of hanging out, then you can change it up a bit and save some money too.

No matter where you live, there are plenty of places to go and do fun things that don’t cost a lot.

If you are having trouble convincing your friends to do things on the cheap, then be upfront with them. Tell them straight out that you can’t spend that kind of money right now — and don’t let them pay for you either. But here are some great alternatives you can offer.

30 Fun Things To Do With Friends Without Spending Much

1. A potluck dinner party. Host a dinner party and ask everyone to bring a dish to share. If you are not comfortable with cooking, maybe try and learn how to cook a new dish together with your friends.

2. Host a spa day. Give each other manicures. Try out new hairstyles. Make some facial masks or exfoliates using natural, at-home ingredients. Then drink mimosas.

3. Movie marathon. Log into Netflix and watch every episode of “Stranger Things” Or do an ’80s movie marathon, watching “Pretty in Pink,” “The Breakfast Club” and all of our old favorites. Don’t have a Netflix membership? Get the free trial just for the marathon!

4. Pinterest party! You know all of those cool Pinterest crafts you say you’re going to do? Do them. At home one night with friends. Then make up some of those bacon-wrapped whatevers you’ve been dying to try!

5. Go to the park. Pack a picnic. Hang out. Watch people. Play on the swings.

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    6. Have an organization party. Set up a day of each weekend where you go to each of your friends’ houses and help them clean out a closet, a room, a garage, whatever. Serve drinks and food and trade stuff among yourselves.

    7. Hold a yard sale. After all of that cleaning, why not hang out together and make some extra cash too?

    8. Concerts in the park. All summer long, many parks host free concerts. Go with your friends. Hang out, bring a picnic dinner. This is a very relaxing way to chill out on a hot summer night after work.

    9. Volunteer together. Offer to do the yard work for the local senior center or hang out with the kids at the YMCA. After a few hours of volunteering together, you will have new respect for each other and something new to chat about.

    10. Play board games. Drag out the Scrabble or the Yahtzee. You can hang out and play all sorts of games with large groups or small ones. Hold a tournament and compete against each other. Here’re some board games ideas.

    11. Video game tournament. Not into board games? OK. Well, how about a video game tournament? Whether it’s the latest dancing game or “Call of Duty,” play against each other and award prizes (or food) to the winners.

    12. Grab a ball and a bat and go play baseball at the local park. Grab a basketball or a tennis racket. Most parks have courts and fields you can use for free as long as there isn’t an organized event going on.

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    13. Go to the school play. This might cost a little for admission, but it’s a great way to support your community and have a fun time.

    14. Iron Chef night. Bring your friends over and have an Iron Chef night where you cook dinner out of only the items in your pantry. No buying anything!

    15. Go dumpster diving. Yup. I said it. Check out the dumpsters in your area and see what you can find. You might even find dinner! Here are some tips for respectful diving.

      16. Go to yard sales. Take all that money you made at your yard sale and cruise around your town together looking for cool stuff. Maybe you could even fix something up and resell it.

      17. Go fishing.

      18. Go camping.

      19. Find some cool trails around your town and go hiking. Here’re some of the best hiking trails you should try.

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      20. Get out the bikes and bike everywhere for a weekend.

        21. Dig out the old croquet set — or borrow your Mom’s — and play croquet. Do it! Totally fun.

        22. Swap movies and music. Have everyone bring over a box of old movies and CDs they don’t want anymore — or don’t watch anymore. Then swap with abandon.

        23. Go on a walking tour of your town. Most towns or cities have a historic district. Find out if there is a walking tour available. If not, make one up!

        24. Scavenger hunt. Put your friends to the test — yes, this is for grown-ups — to find different things in your city…like a certain bike rack, a vintage sign, that sort of thing. The winner gets a dinner cooked by the losers.

        25. Find out when the free days are at your local museum or zoo. Most have them and they can be great fun to visit with friends.

        26. Hold a quilting bee. No, you don’t have to be fancy — or old — for this. Grab some old T-shirts that you love, old jeans, whatever. Cut them into squares and sew them together. Who knows? Maybe it will become a regular thing?

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        27. Go to Open Mic night. Your town is likely harboring some great talent at an open mic night that has no cover and cheap drinks!

        28. Go to a religious service. Even if you’re not religious, going to a service in an unfamiliar religion can be enlightening and a great way to meet new people.

        29. Find a swimming hole. Head to the old town swimming hole — or find a new one. What a great way to spend a lazy afternoon with friends.

          30. Start a book club, card club (canasta anyone?), sewing club or scrapbooking club. Something you and your friends like. My parents used to belong to a cooking club where once a month all of their friends gathered at one house and the host family cooked a meal from a different country. I learned a lot about food that year.

          You don’t really need to spend much to have lots of fun with your friends! Pick a few of these ideas and start trying them out this weekend with your friends!

          Featured photo credit: Unsplash via unsplash.com

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