Marie was a client who had difficulty saving money. She was doing a great job on her retirement savings, contributions were taken out of her paycheck before she ever saw the money, but she needed to save some money for a “rainy day fund” outside her retirement accounts. Knowing that she enjoyed daily trips to Starbucks, I proposed to her the “Starbucks Savings Plan.” Under this plan, Marie would “match” her spending at Starbucks with a similar contribution to her savings account.
The exercise was a real eye-opener for Marie. She was shocked to learn she was spending nearly $50 a week on coffee! A $4 per drink every morning, plus she often bought for others and would occasionally get an iced coffee in the afternoon, it was really adding up. She agreed to match her weekly coffee expenditures with an equal deposit into her savings account. read more