Turning Your Daily Cuppa Into Retirement Fund

I share with people my investment journey, what I do and how I seek decent investment returns for my money. Many appreciate my sharing and those who decide to take actions follow my recommendations and are starting to see initial stock investment successes.

There are some people who say they don’t have money or have very little money to invest, and they look dejected when they tell me that. Some ask how much they need to have to meaningfully start investing.

I have pondered on this. I think while this is genuinely a problem in certain circumstances, it could be a case of either lack of knowledge or absence of motivation most other times.

You do not need a lot to start investing.

Turning your daily cuppa into retirement fund

Let me use the example of our daily cup of coffee (or tea). It probably costs you $5 or more. I may exaggerate a little if I say you drink a cup every day but bear with me. This is going to cost you $1,800 a year.

Now if you can “sacrifice” this and save it up for 35 years, you have $63,000. Assume you start this journey when you start working at age 25, you have saved yourself $63K by age 60.

But if you invest this in dividend yielding stocks at 7% per annum, guess what, it is now nearly quarter of $mil.

Retirement Fund

By then, the dividend per annum received is about $16K, which is also a decent $1,346 per month if you decide to spend the dividend but keep the capital for more dividends moving forth.

I use $5 per month here, you can vary the amount accordingly.

I learn a number of things from this illustration.

  • If you want wealth, financial freedom, time freedom, whatever the motivation; stop saying you don’t have enough money to start


  • It is important to learn how to invest properly and achieve decent investment return


  • Start early, but it is also never too late to start

Having illustrated with coffee as an example, I am really not suggesting you give up your favourite cup of coffee to start the day, Starbucks which I have invested into may go bankrupt!

We have the Dividend Mastery Programme and other stock investment courses for you to consider picking up the right stock investment skill-sets.

At Journey With Money, we are practitioners of Value Investing for Singapore and US stocks. We are passionate about sharing our Stock Investment knowledge and experience but the materials we present do not constitute stock recommendations and readers are urged to do their own due diligence for any investment decisions.

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