We calculated how much you can earn if you give up coffee with you and invest money in ETFs.

The generation of millennials are often accused of not knowing how to handle money at all: unlike their parents, they do not know what it means to save and save. Recently, American television personality and financial advisor Susie Orman publicly

Here’s her calculation: 100 bucks for coffee a month, 40 years of coffee abstinence at 12% annual return in dollars. By the way, this is too optimistic! Alas.

Young people (well, some representatives) responded by accusing celebrities of “coffeeshaming”. It seems that the right to pleasant spending is inviolable.

And you know what? You shouldn’t even listen to the advice on personal finances of American millionaires. Take Orman, for example: she may not buy coffee, but she spends hundreds of thousands of dollars to fly a business jet.

This is not the first time public coffeeshaming has occurred, but the coffee menu is not limited. A couple of years ago, 35-year-old Australian millionaire Tim Garner stated that most young people cannot afford to buy a home because they spend too much on avocado toast. “When I tried to make my first home, I didn’t buy a \$ 19 crushed avocado and four \$ 4 cups of coffee every day.”

Another millionaire — David Bach, author of The Automatic Millionaire —

And yet, with all the skepticism about banal advice on saving, we decided to check: is it really possible to become a millionaire by saving on coffee, as experts say. After all, this is just an exercise to demonstrate the «power» of compound interest.

For example, let’s take a large portion of cappuccino in a Moscow Starbucks worth 295 rubles. If you buy coffee every day, spend RUB 8,850 in 30 days and RUB 107,675 in a year. In 40 years, you could have saved 4,307,000 ₽ by giving up cappuccino in a coffee shop.

You will need a starting amount of at least 100,000 rubles — by giving up cappuccino you will collect them in a year. If over the next 39 years you add the value of all un drunk cups of coffee to your account, then by August 2058 you will earn more than 94 million rubles.

For simplicity of calculation, we do not take into account that the annual cost of a cup of coffee will grow, and the purchasing power of the resulting millions in 40 years will be much less than today due to inflation. But the fact is that even with such a small amount as a cup of coffee, you will come to old age as a millionaire. At the same time, it is still not necessary to give up coffee and, in general, from any pleasures: it is enough just to start regularly saving at least a small amount to an investment account — you can do it a little every month, from your salary.

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