One drink here or there may not seem like a big deal, but it can add up over time and make a big difference to your finances (and your health!). It’s easy to lose track of how much money you’re spending on alcohol, especially when you’re intoxicated and decide to buy shots for everyone.
We are not saying to stop going out and having fun. Go live your best life! But make sure you are still on track with your long term financial goals. And if you are spending $300/month on alcohol, make sure you value that more than an extra $1.5 MILLION in the future.
You should happily spend money in the areas that you value and be frugal in areas that don’t excite you. Take the money that you would have blown on stuff you don’t care as much about and invest it instead in a low fee index fund.
The earlier you spend money on investing in index funds, the more your money will grow over time and the sooner you will become financially independent.
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
Source: spending $300 per month on alcohol is from a Harris Poll study.
