Book of the Week:
The Automatic Millionaire

Pennies Add Up to Millions

A latte a day keeps the retirement away - Automatic Millionaire by David Bach.

A latte spurned is a fortune earned. - People Magazine

I'm sure all of you have heard the term "Pennies Add Up to Millions." But have you ever thought about how the few dollars you pay for a Starbucks coffee or the dollar you feed the vending machine can help pay for your retirement?

David Bach's book, "The Automatic Millionaire" talks all about how you can save up for a lavish retirement by cutting back on simple daily expenses. Accumulating the money you save is the easiest way to make your own money grow.

Click here to view and print a worksheet which will help you track how much you spend for a few days. Now type in this value into our "Pennies Spent Calculator" to see how much you could have made investing that money.

Assuming you spend $10 for coffee, vending machine, gum, and other junk you don't need every day (which, by the way, you could easily buy for 50c if you buy in bulk), let's take a look at how much it actually ends up costing you.

Think back to when you were twenty. At age 20, if you invest that 10 dollars everyday, for five days every week, at the average annual stock market return of 10% .

Years Invested	Gross Earnings	Net Earnings
Start	$2,600.00	$0.00
1	$5,720.00	$520.00
2	$9,152.00	$1,352.00
3	$12,927.20	$2,527.20
4	$17,079.92	$4,079.92
5	$21,647.91	$6,047.91
6	$26,672.70	$8,472.70
7	$32,199.97	$11,399.97
8	$38,279.97	$14,879.97
9	$44,967.97	$18,967.97
10	$52,324.76	$23,724.76
11	$60,417.24	$29,217.24
12	$69,318.97	$35,518.97
13	$79,110.86	$42,710.86
14	$89,881.95	$50,881.95
15	$101,730.14	$60,130.14
16	$114,763.16	$70,563.16
17	$129,099.47	$82,299.47
18	$144,869.42	$95,469.42
19	$162,216.36	$110,216.36
20	$181,298.00	$126,698.00
21	$202,287.80	$145,087.80
22	$225,376.58	$165,576.58
23	$250,774.24	$188,374.24
24	$278,711.66	$213,711.66
25	$309,442.83	$241,842.83
26	$343,247.11	$273,047.11
27	$380,431.82	$307,631.82
28	$421,335.00	$345,935.00
29	$466,328.50	$388,328.50
30	$515,821.35	$435,221.35
31	$570,263.49	$487,063.49
32	$630,149.83	$544,349.83
33	$696,024.82	$607,624.82
34	$768,487.30	$677,487.30
35	$848,196.03	$754,596.03
36	$935,875.63	$839,675.63
37	$1,032,323.20	$933,523.20
38	$1,138,415.52	$1,037,015.52
39	$1,255,117.07	$1,151,117.07
40	$1,383,488.77	$1,276,888.77
41	$1,524,697.65	$1,415,497.65
42	$1,680,027.42	$1,568,227.42
43	$1,850,890.16	$1,736,490.16
44	$2,038,839.17	$1,921,839.17
45	$2,245,583.09	$2,125,983.09
46	$2,473,001.40	$2,350,801.40
47	$2,723,161.54	$2,598,361.54
48	$2,998,337.69	$2,870,937.69
49	$3,301,031.46	$3,171,031.46
50	$3,633,994.61	$3,501,394.61

Now stop staring at the screen. The sooner you get up and start saving the faster your money will grow. Believe me, its fact. 10 dollars a day for 40 years could easily result in 1.3 million or even 3.5 million in 50 years. This is the true power of the compounding dollar.