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Aug 21, 2008 5:57 pm US/Pacific
Making Your Own Lunch Can Save Lots Of Bread
SAN FRANCISCO (CBS 5) ―
More and more folks are "brown bagging" it these days -- and for good reason.
Kingston Lee is a perfect example.
"Once gas started going up, I noticed my bank account was dipping lower and lower and lower. So I was like, 'I gotta save some money'," said Lee.
He went out and bought bread, meat, lettuce, and all the dressings.
And in a business world where we keep spread sheets on everything from profit and loss to customer data, Lee is going a step further.
"I actually have an Excel sheet that I type in everything that I spend," said Lee.
He also calculates the cost to make each and every sandwich. "Well, right now I'm at $1.43. Last week I was at $1.66," said Lee.
He normally spends about $8 a day just on lunch. But no more.
So let's say Lee invested the $7 a day he saves on lunches in an IRA with an annual return of 7.5%, interest compounded annually. In five years, he'll have $13,661; in 10 years, $33,274; and 15 years, $61,430. In 20 years, he'll have $101,853 -- and he'll only be 43.
And why stop there? Knock out that $3 a day latte and in 20 years you'll save nearly $44,000. If you kick the habit, that $5 pack of cigarettes would put $73,000 in your bank account.
Lee looks at saving money as game -- one that he's winning. "Actually, I 'm planning on buying a house soon," said Lee.
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