Why do you keep buying that $125,000 coffee?

Seriously, that daily, fancy $4 coffee may in fact cost you $125,000.

It is so easy for a non-coffee drinker to pick on the obligatory $4 coffee as an unnecessary expense but the numbers really are powerful.

If, in your 20s, you can skip, or reduce by one a day, the $4 coffee then you can save about $100 per month. Stick with it and you can save $1200 a year or $12,000 during the decade of your 20s.

Saving (setting money aside) is the first step to compounding growth. If we invest that money and earn 7% a year until age 60 (reasonable assumptions), the $12,000 you saved in your 20s can growth to OVER $125,000 by age 60. No kidding!

Lesson:

- I don't like coffee.

More important lessons:

- Saving young and giving money time to grow and compound can be really powerful.

- A simple daily decision (involving a small sacrifice today) can have an unbelievable reward in the future (dare I say life changing)!