We know we are going to get a lot of comments calling us Scrooge, BUT we are not trying to kill Christmas!!
We are using Christmas trees in this example, but this concept can be applied in other areas as well. There are things we spend money on and we aren’t even sure why we do it. Or we think we’re saving money by buying a cheaper item that doesn’t last that long when instead, spending money on something more *evergreen* would actually save us money in the long run.
Align your spending with what you value. Don’t just buy a Christmas tree every year because you think it’s the thing to do. Do it because you absolutely love it and you can’t imagine Christmas any other way. You better love it more than your future self will love an extra $126,000!!!
In this example, we are using the median price of a real Christmas tree ($80) and assuming a conservative 2% inflation rate per year. We used 10% for the investment returns since that’s the long term average annual return of the S&P 500. It’s hard to believe that consistently setting aside a small amount of money can turn into a six-figure chunk of change (that’s the beauty of compounding!!).
The good news is, if you’re interested in getting a fake tree, this is the perfect time! You can probably get at least 50% off on one after Christmas 🙂
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
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