We have a Tim Horton's by our office building with a walking distance less than 500 meters. Everyday, sure enough, many people will go there and buy a cup of coffee even if we have free one in the office. I want to do a calculation to see how much two coffees a day is going to cost us.
Let's say we buy two medium double double a day, one in the morning, one in the afternoon. I think the price for each one is $1.39. We work 5 days a week. There are 52 work weeks in a year.So, we spend $1.39*2*5*52=$722.8 a year for two coffees a day. Let's say you put the $722 into a GIC or other investment vehicle earning moderate 5% return each year. At the end of year2, assuming your marginal tax rate is 40%, you will have $1465.68 in your pocket, after tax.
How much it costs to fly back to China? I think it is around the same figure. What about vacations within North America? The trip I am going to take to Orlando will cost me less than $900, keeping in mind that we won't go cheap for the trip and will stay in a four star hotel. So the message is clear. You never think two coffees a day will keep your vacation away, don't you?
But don't get me wrong. I don't believe in dying loaded. Life is about to enjoy it as much as you can. I mean, if the coffee from Tim Horton's is so much difference from the free coffee offered in the office and will make you so much happier, by all means, go to Tim's and buy yourself a nice cup of double double. If not, why don't you save two coffees a day. When next time, people wonder how you can afford to go back to China every other year or going on vacation each year, you can say out loud and proudly, "I am paying for that with my coffee money." I guarantee you the satisfaction level will be so much higher than two coffees a day.
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