☕ Your Latte Problem
$0
$7.00 every day
Not too shabby, coffee lover! ☕❤️
📈 If You'd Have Invested It
$0
$49 invested weekly, 10% annual return
☕ How Much Starbucks Made
$0
Your lattes funded their 9.76% annual returns
You literally paid for their shareholders to get rich! 📈☕
You'd have an extra
$0 🤯💰🥵
Assumptions
• S&P 500 annual return: 10% (historical average)• Starbucks annual return: 9.76% (10-year historical average)
• Compounded weekly with no fees
• Weekly investment = (latte cost + tip) × 7 days
How the Math Works
Latte Spending:Daily cost × 365 days × number of years
S&P 500 Investment:
Uses compound interest with weekly contributions:
• Weekly return = (1.10)^(1/52) - 1 ≈ 0.184%
• Future Value = Weekly Investment × [(1 + weekly rate)^weeks - 1] / weekly rate
• This accounts for each $49 growing at 10% annually
Starbucks Stock Investment:
Same formula but with 9.76% annual return (their actual 10-year performance):
• Shows what your latte money would have made if invested in SBUX stock
• The irony: you funded their growth while missing out on the gains!
Why Weekly?
Instead of one lump sum, you invest $49 every Monday (like skipping 7 lattes). Each week's investment has different time to grow, so earlier investments compound longer than later ones.
Brokers like Vanguard and Robinhood make it easy to invest weekly with no fees. Some folks prefer monthly as well which is fine too, whatever you do, just do it!