You are saving up for your house deposit. You also like having your smashed avocado fix three times a week. So what impact will this have on your savings? Let’s take a look.
Cost of smashed avocado: $20
Number of orders per week: 3
Smashed avocado price increases: 5.0% per year
Investment returns in growth assets: 6.0% per year
As you can see, having your smashed avocado fixed 3 times a week for the whole year can cost you over $3,000 a year. Spread that out over 10 years, that’s nearly $40,000! Even more mind blowing, had you invested that money on something that earns around 6.0%, you could be looking at something over $50,000 in the same time period!
So should you stop smashed avocado all together?
It really depends how you prioritise your savings goals. After all, you work hard for your money, so you deserve to enjoy a bit of it. If you love smashed avocado that much, you probably shouldn’t and won’t stop all together.
The main thing in this exercise is to think about to savings implication of your spending habits. For many, looking at reducing if not eliminating money on alcohol and cigarettes will likely have a more significant impact on their savings than the smashed avocado. And be much better for your health too!
The old sayings used by our grandparents still ring true, “Money saved, is money earnt”.
How can a financial planner help?
Your professional financial planner is trained to provide financial advice to help you achieve your financial goals. On top of providing advice in regards to your superannuation, life insurance or selecting a super fund and other financial solutions, many professional financial planners can help you manage your money. Of course, if there is anything you are not sure of, it doesn’t hurt to seek a second opinion. It could mean an extra many thousands of dollars in your pocket!
AFP® ,B.Bus(Acc), B.Comp, DFP, ADFP
Accredited Aged Care ProfessionalTM
Authorised Representative No. 1238040
Disclaimer: Information on this site may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product.
Write something about yourself. No need to be fancy, just an overview.