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The individual determines cost/benefit. But in the case above, doing a full analysis over the cost/benefit of a single drink is neurotic. I don't know about you guys, but when I'm out and about having fun and I'd like a latte, expresso, etc the last thing I want to think about is whether the $4~$5 would be better spent in an investment portfolio....
what about the fact that you're spending 2K a year on tea?
Closer to $1k. Coffee/Tea are legitimate business expenses. So the IRS covers about half.
But what about the fact? A thousand dollars has different value to different people. But if $1000 to $2000 has an impact on your portfolio overall, Maybe your time is better spent analyzing your entire cashflow rather than beverage expendatures.
(successful) businesses do it, and you are th CEO of 'youcorp'
Businesses do not do cost benefit analysis of buying coffee/tea. Even to supply all their breakrooms. They realize it's such a minor expense in the scheme of thing.
Closer to $1k. Coffee/Tea are legitimate business expenses. So the IRS covers about half.
But what about the fact? A thousand dollars has different value to different people. But if $1000 to $2000 has an impact on your portfolio overall, Maybe your time is better spent analyzing your entire cashflow rather than beverage expendatures.
$1,000 per year, every year at 8% (Lower than the 'expected' 12% ROTH's and such preach) is $122,345.87
If it's $2K
It's $244,691.74
A Quarter million is worth spending 5 minutes thinking about
If it's $2K per year at 12%, it;s over half a million Bux. ($540,585.21)
If YOU don't think about 1/4- 1/2 a million bux...
YOU need to consider what you do with YOUR time that's worth so much!
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Originally Posted by NJBest
Businesses do not do cost benefit analysis of buying coffee/tea. Even to supply all their breakrooms. They realize it's such a minor expense in the scheme of thing.
When I walk into Starbucks to get my Tea Latte (heading there in a few), and hand $5.60 to the cutie behind the counter, I am rarely thinking about my qualifications for retirement incentive programs and the fixed (or unfixed) costs associated with the creation of my beverage. If you do that kind of analysis in regards to a beverage, I'd hate to know what you do when you're shopping for a car or a home.
i dont really do a major cost/benefit analysis of everything i buy. i just ask myself if im getting enough benefit for the money spent. i will usually compare it to a cheaper or free alternative. no beverage really makes the grade when it comes to me grabbing something and drinking it by myself for a few minutes. when i get coffee, its usually when i go to a sit down breakfast with my wife and its the experience that is much more important than anything i ingest.
Maybe one day you will know what your talking about...
Ya'll keep not worrying about it.
I'll stay on track to retire at 40...
Your financial analysis is flawed. You are comparing FV figures to PV figures. My MBA concentration is finance so don't act like I don't know any thing about FV calculations.
And I run 4 small businesses (2 franchise daycares, consulting firm, and recruiting and staffing), so I know exactly what I am talking about in terms of what businesses analyze.
You can only put $5000 into your ROTH (if you happen to qualify) and $49k into your 401k per year. I personally save beyond that but that's a different story. So once you cover those, and your house and cars are paid off... what's the point of saving an extra $1 to $2k? The reason why people patron at places like Starbucks is because there's enough money to cover everything and some. Beverages are not going to have an impact on your life.
People have other larger expenses they can cut out of their life if they want an impact. The country club, the vacations, the gambling etc. Coffee/Tea is not worth it..
So as I originally said... discussing your roth ira eligibility is silly when discussing beverages.
i dont really do a major cost/benefit analysis of everything i buy. i just ask myself if im getting enough benefit for the money spent. i will usually compare it to a cheaper or free alternative. no beverage really makes the grade when it comes to me grabbing something and drinking it by myself for a few minutes. when i get coffee, its usually when i go to a sit down breakfast with my wife and its the experience that is much more important than anything i ingest.
I get you. You aren't going to buy something that isn't worth it to you. It's a personal valuation. Nothing wrong with that.
But when the cost of coffee leads to you considering your retirement incentive qualifications, you are are taking it to far (not you specifically since you said you don't).
My tea to me is a mini vacation away from work. It's certainly worth more than $5 to me. And I drink my tea alone because I deal with people all day during work, I just want to be away from everyone for 20 minutes.
The individual determines cost/benefit. But in the case above, doing a full analysis over the cost/benefit of a single drink is neurotic. I don't know about you guys, but when I'm out and about having fun and I'd like a latte, expresso, etc the last thing I want to think about is whether the $4~$5 would be better spent in an investment portfolio....
I've toyed with the idea of opening a stand at the street corner and selling coffee (brewed using Walmart-brand instant coffee but the customers don't know it) for about 50 cents a cup..
I get you. You aren't going to buy something that isn't worth it to you. It's a personal valuation. Nothing wrong with that.
But when the cost of coffee leads to you considering your retirement incentive qualifications, you are are taking it to far (not you specifically since you said you don't).
My tea to me is a mini vacation away from work. It's certainly worth more than $5 to me. And I drink my tea alone because I deal with people all day during work, I just want to be away from everyone for 20 minutes.
haha, its funny picturing someone thinking what the effect of a $5 beverage has on their retirement. i think that its really the impact of that multiplied by having it 10 or more times a month can have on their savings. while it may have very little impact for me or you, i see people who earn $11 an hour ordering in breakfast regularly and going out to lunch regularly. i think it makes too much of an impact on their expenses.
Your financial analysis is flawed. You are comparing FV figures to PV figures. My MBA concentration is finance so don't act like I don't know any thing about FV calculations.
And I run 4 small businesses (2 franchise daycares, consulting firm, and recruiting and staffing), so I know exactly what I am talking about in terms of what businesses analyze.
You can only put $5000 into your ROTH (if you happen to qualify) and $49k into your 401k per year. I personally save beyond that but that's a different story. So once you cover those, and your house and cars are paid off... what's the point of saving an extra $1 to $2k? The reason why people patron at places like Starbucks is because there's enough money to cover everything and some. Beverages are not going to have an impact on your life.
People have other larger expenses they can cut out of their life if they want an impact. The country club, the vacations, the gambling etc. Coffee/Tea is not worth it..
So as I originally said... discussing your roth ira eligibility is silly when discussing beverages.
I don't know what you mean with the abbreviations "FV" and "PV" I DO find it interesting that SO MANY people with degrees in finance arn't the ones who (Can) retire early!
-Kinda like the Doc who smokes.
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so I know exactly what I am talking about in terms of what businesses analyze.
You just made an (Earlier) statement.
I gave proof you were wrong.
Then you offered anecdotal evidence that you were right.
(See what's wrong here?)
Just cause a COUPLE do not... doesn't make it universal. And I've shown a trend...
ROTH:
Who (Except you) mentioned ROTH?
My Numbers were straight up saving and investing.
If you want to work for years more to make up the $...
Have at it.
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The reason why people patron at places like Starbucks is because there's enough money to cover everything and some.
I work at a university. I can ASSURE YOU that those who patronize the Starbucks there are NOT in that category.
Nor are many others.
You (Possible) may.
Others (A few) may.
The majority, no.
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Beverages are not going to have an impact on your life.
I have shown that (Financially) they do.
Conversely, their absence (I drink an energy drink about 1x per week when I need a 'boost') have not impacted MY life!
Quote:
Coffee/Tea is not worth it..
Half-mil not worthit... Got it.
We all have to make our own decisions as to what is and isn't worthit.
We have been TRYING to explain this to you.
Many of us, realise we only have so much time on this earth and don't want to use it up buying 'stuff'
YOU advocate spending the only thing which we are limited in (Time) to get 'stuff'
THat's fine for you...
Me, I'll keep working towards retiring at 40, and enjoy more experences, and less (But still good) 'stuff'
(But it was funny to watch you squirm, and try to blow facts off while on the hook there)
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