Sure, there are some things in life you may not want to give up, like your favorite shampoo, soda, or anything else that you regularly consume. You might be thinking to yourself, what difference will it even make if I only spend $5 on coffee every day? For example, choosing to buy a $2 coffee instead of a $5 one could save you almost $50,000 by the time you retire. That’s a lot of money for simply opting for a different (cheaper, in this case) brand of product, without actually giving up on something you like!
This life savings calculator will open your eyes to how much of a difference can buying cheaper or more expensive products can make throughout your life. Thanks to the power of compounding interest, even small decisions can have a huge impact in the long run. You could also run scenarios like spending $10 for a drink at a restaurant versus not drinking (a $0 alternative!).
To use this life savings calculator, simply select your current age, your planned retirement age, and your target age (aka your expected lifespan) using the sliders. Then enter the cost of the product you are currently using, and the alternative. Selecting a usage frequency will give you the expected savings (or losses) for the given scenario per usage, per month, and per year. You can also a breakdown of before retirement versus after retirement amounts saved.
The calculator assumes 8% APR for the money saved or lost. If you’d like to select a different rate, you can change this from the Expected Annual Interest Rate field. Go ahead, run your numbers and see what your life savings (or losses) could be with small changes in your habits.