It's Saturday night and guess what? Powerball is at an estimated who cares how many million dollar jackpot because you have better odds of being struck by lightening twice than winning. So I aim to help you break the spell of I must get rich quick.
"The only person that wins at the casino, is the house!" Steven Wynn, CEO Wynn Resorts & Casino
This is about retirement right? We'll I'm going to break down the lottery for you like a venture capitalist breaks down an angel investments prospects for a company that might actually make it big.
Odds of winning 1:195,249,053 This means you will have to play Powerball that many times to ensure 100% victory statistically.
1 dollar of a 30 year annuity at $20 million gives you an average ROI of .226 This means for every dollar you would expect to get back 22 cents!
You lose!
Compile those odds with other similar lotteries like Keno and you'll see why it's such a losing proposition to gamble at all.
Assumption: CasinoWatch.org states the average household spends $600 per year the average household consists of 2.59 per home. This equals $231.66 per person x 42 years. 5% annual compound interest.
Savings $231.66 Annually. Retirement savings? in 42 years....
Drum roll..........
Savings for retirement by never playing lotto's based on our scenario
$32,894 per person for retirement!
Bottom line, this might hurt but gamblers are losers. By gambling your throwing your money away and ensuring you don't retire early!
Saturday, February 26, 2011
Thursday, February 24, 2011
Is Bottled Water Drying Up Your Savings?
According to the Mayo Clinic the average person should drink 8 8-ounce glasses of water per day. Err... how much? 64-ounces, 1.9 liters, 1/2 gallon, 4 lbs, ...... OK you get it. A lot!
So lets do the math shall we?
1 Bottle of 1 liter Desani water approximately: $1.19 + Tax (6%) = $1.26 multiplied by 4 gets you to the amount of water you should be drinking per day.
Total Cost: $5.04 per day. Cost per year: $1,839.00 (refilling water bottles is a dangerous practice due to the level of bacteria present)
Lets try a bigger bottle!
Belmont Springs Home Delivery as of today.
$27.08 per month or $324.96 per year.
Lets try the tap!
1 CCF(cost per cubic foot) approximately $2.10
1 CCF = 95,744 oz
Yearly Consumption = 23,360 oz
So..........23,360/95,744 = 24% and 24% of $2.10 = Drum Roll........$0.504 PER YEAR...WTF?!!!
Conclusion... you can saver anywhere between $1838.50 and $324.46 Per Year just by using your tap water.
Savings Calculator.....
We do realize no one buys 4 bottles of water per day. We also realize that most people do not buy home buy home delivery water. However, most people do go to lunch everyday and do buy a beverage. We are going to assume that beverage is going to be water and that the bottle will be refilled 7 times through out the day.
Assumption: 42 years, Only 1 bottle per day at $1.26 annualized equals $459.00 - $0.50 = $458.50 (accuracy is important)
Using a simple compound annuity calculation at a 5% interest rate yields us.................
Ready for this?
I don't think you are....
$65,103.95 more dollars for retirement! Just by drinking tap water.
WHAT! Yes!
So lets do the math shall we?
1 Bottle of 1 liter Desani water approximately: $1.19 + Tax (6%) = $1.26 multiplied by 4 gets you to the amount of water you should be drinking per day.
Total Cost: $5.04 per day. Cost per year: $1,839.00 (refilling water bottles is a dangerous practice due to the level of bacteria present)
Lets try a bigger bottle!
Belmont Springs Home Delivery as of today.
$27.08 per month or $324.96 per year.
Lets try the tap!
1 CCF(cost per cubic foot) approximately $2.10
1 CCF = 95,744 oz
Yearly Consumption = 23,360 oz
So..........23,360/95,744 = 24% and 24% of $2.10 = Drum Roll........$0.504 PER YEAR...WTF?!!!
Conclusion... you can saver anywhere between $1838.50 and $324.46 Per Year just by using your tap water.
Savings Calculator.....
We do realize no one buys 4 bottles of water per day. We also realize that most people do not buy home buy home delivery water. However, most people do go to lunch everyday and do buy a beverage. We are going to assume that beverage is going to be water and that the bottle will be refilled 7 times through out the day.
Assumption: 42 years, Only 1 bottle per day at $1.26 annualized equals $459.00 - $0.50 = $458.50 (accuracy is important)
Using a simple compound annuity calculation at a 5% interest rate yields us.................
Ready for this?
I don't think you are....
$65,103.95 more dollars for retirement! Just by drinking tap water.
WHAT! Yes!
How much is your coffee really costing you?
I buy Jamaican Blue Mountain Coffee. Price $44/lb! What! Yes! $44/lb and it costs me LESS than your trip to Dunkin' Donuts or Starbucks. How is this possible you ask. Simple. Let's do the math together.
1 lb of Blue Mountain Coffee makes approximately 22 Cups of 16 oz coffee. Price $2.00 per cup of the worlds finest most expensive coffee.
For comparison to regular priced coffees:
House Arabica $8.00 per pound 22 Cups of 16 oz coffee Price $0.36
Blue Mountain 16 oz. $2.00 after tax/water/electric/machine $2.10
Yearly Cost $766.50
House Arabica 16 oz. $0.36 after tax/water/electric/machine $0.46
Yearly Cost $167.90
Dunkin' Donuts 16 oz. $2.49 after tax about $2.67
Yearly Cost $974.55
Starbucks 16 oz. $2.99 after tax about $3.20
Yearly Cost $1,168.00
There you have it. The winner is $44/lb Jamaican Blue Mountain Coffee.
Check out how much you could save for retirement doing just this.
Assumptions: 42 working years $401.50 annual savings vs. Starbucks Compounded at 5% Annually.
This will amaze you!
Ready!
$57,010.33
OK, ready. Same math with House Blend Arabica Savings annually over Starbucks at $1,000.10
Ready!
Watch the magic of compounding interest!
This is insane!
$142,007.54
Put that in your cup and drink it! It's easy to save for retirement if you know how!
By brewing the worlds finest and most expensive coffee at home over a 42 year working period you should save enough money to buy a luxury automobile or a small vacation home!
This will be the first of my many ways to help you save for retirement without changing your quality of life.
1 lb of Blue Mountain Coffee makes approximately 22 Cups of 16 oz coffee. Price $2.00 per cup of the worlds finest most expensive coffee.
For comparison to regular priced coffees:
House Arabica $8.00 per pound 22 Cups of 16 oz coffee Price $0.36
Blue Mountain 16 oz. $2.00 after tax/water/electric/machine $2.10
Yearly Cost $766.50
House Arabica 16 oz. $0.36 after tax/water/electric/machine $0.46
Yearly Cost $167.90
Dunkin' Donuts 16 oz. $2.49 after tax about $2.67
Yearly Cost $974.55
Starbucks 16 oz. $2.99 after tax about $3.20
Yearly Cost $1,168.00
There you have it. The winner is $44/lb Jamaican Blue Mountain Coffee.
Check out how much you could save for retirement doing just this.
Assumptions: 42 working years $401.50 annual savings vs. Starbucks Compounded at 5% Annually.
This will amaze you!
Ready!
$57,010.33
OK, ready. Same math with House Blend Arabica Savings annually over Starbucks at $1,000.10
Ready!
Watch the magic of compounding interest!
This is insane!
$142,007.54
Put that in your cup and drink it! It's easy to save for retirement if you know how!
By brewing the worlds finest and most expensive coffee at home over a 42 year working period you should save enough money to buy a luxury automobile or a small vacation home!
This will be the first of my many ways to help you save for retirement without changing your quality of life.
Subscribe to:
Comments (Atom)