Suze Orman advises on money management and emphasizes avoiding unnecessary expenditures, like daily coffee purchases, that can substantially impact long-term savings. For example, spending $7 daily on coffee amounts to over $2,500 a year; compounded over 40 years, it totals over $100,000. Instead, she encourages redirecting even small amounts, such as $100 a month into a Roth IRA, which could yield around $1 million over the same period, stressing that all small expenses add up and affect retirement savings.
"You are peeing $1 million down the drain as you are drinking that coffee," Orman once told CNBC. "Every single penny counts when you're saving for your future."
Right now, the average cup of coffee can cost about $7. If you get coffee once or twice a week, it's not too bad. But if you're doing it every day - it's costing you $210 a month, and $2,520 a year.
Instead, according to Suze Orman, "$100 a month in a Roth IRA, over 40 years is $1 million. So you need to think about it as you are peeing $1 million down the drain after drinking that coffee."
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