Are You Eating $1 Million?

Read time: 2 ½ minutes

How much do you spend eating out every month?

$100? $200? $500? $5 million?

I hate to be the bearer of bad news, but no matter what number it is for you, it’s a lot more expensive to eat out than you think.

In today’s issue:

• The TRUE cost of all those tacos

• The crazy power of compound growth

• An easy way to millionaire status

The average American spends $3,008 per year eating out.

Add to that the average $1556 spent on food delivery apps, and more than $4500 per year, or $380 per month, is going straight to our stomachs.

“Whatever” you say, “What are you gonna do? With inflation these days that’s not even that much. Plus it’s my one joy in life. Don’t you dare make me feel guilty about it! Back off my nachos, Zach!”

Listen, I love eating out as much as the next guy! Heck, I’m sitting in a Panera typing this right now. 

But the numbers don’t lie….

$380 a month leaves your hands, turns into orange chicken, and disappears into your stomach in ten minutes.

You’re happy. You’re full. There are no dishes to clean up.

But what did that “small” indulgence actually cost you?

Instead of putting your money into Chinese food, you had the option to invest it in the stock market. Not as tasty, but definitely longer lasting.

A simple, no effort S&P500 index fund has historically averaged a 10% per year rate of return.

If we factor in inflation (the fact that things get more expensive over time, so the same money you have today doesn’t buy as much in ten years), which has averaged 3% over modern history, we can guess that we’ll get an effective 7% rate of return on any money we invest today. (10% - 3% = 7%)

This is approximate math, but it’s good enough for most decisions like this.

$380 invested every month for just 10 years becomes $65,772. 

Let that sink in.

$65,000 will buy you a Tesla model 3, round trip flights for two on a private jet from New York to the Bahamas, send a family of 4 to Disney World, and STILL leave you enough money left over to buy everyone you ever knew orange chicken. (yes actually)

Do that for 20 years, and you’ll have $198,000.

Do that for 40 years, the typical length of a full working career, and you’ll have $1 million.

Millionaire status just by deciding to not eat out.

You weren’t picking stocks, you weren’t paying attention to the economy, or who was at war with who, or whether to buy crypto or not. Simple. So easy, anyone could do it - but most don’t.

So before you complain that “you don’t make enough money to invest” or “I didn’t grow up rich with parents who could give me everything”, ask yourself, are you eating your million dollars?

Keep growing,

P.S. The only way this newsletter grows is from people like you sharing it! It would mean the world to me if you would spread the love and let others in on the secret of how you’re building such incredible wealth Biblically. It’s free and gives you brownie points with Jesus, redeemable for an extra bathroom in your mansion in heaven.*

*Cannot confirm or deny the truth of these claims. But hey, it couldn’t hurt, right?

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