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I Bought $5 in Starbucks Stock Every Day Instead of Buying My Morning Coffee
The money I earned and the lessons I learned — from finally listening to money gurus.
I gave in. I finally listened to all those money gurus on the internet and decided to take better care of myself and my money. There is lots of different financial advice on the internet to listen to, but the advice I’ve seen the most is:
Don’t spend your money on coffee every morning. Invest that money instead.
People give out this advice as if it will save you a fortune, but in reality, it all depends on the perceived opportunity cost of each individual person. I should know; I ran the numbers. But still, this advice gets thrown around from time to time, probably because of the public support from celebrity millionaire, Kevin O’Leary.
“Never do I do that. That is such a waste of money for something that costs 20 cents,” O’Leary says, who is an avid coffee drinker himself. Not buying coffee could be difficult for some though, especially those who are always in a morning rush or those who simply can’t make a good cup of coffee for the life of them.
For me, I love coffee to death. I can’t go one day without my morning coffee, so maybe Kevin O’Leary does have a point after all. Too bad I always make my coffee at home so I can’t really benefit from O’Leary’s advice of not buying morning coffee. Or can I?
Birth of an investor
You see, Kevin O’leary’s advice isn’t just to stop buying your morning coffee. No. It is also to invest that money instead. Which is exactly what I did.
But what stock should I invest in? Should I go safe with an ETF? The answer to this question wasn’t obvious until it was — Starbucks. Instead of buying a $5 coffee every morning, I bought $5 in Starbucks stock every day.
I like to think of this as a little experiment. I wanted to see how much I could actually earn (or even lose) and if O’Leary’s advice had…
