Make $14,000 for only 5 minutes per day

Sounds good heh?

$14,000 for only 5 minutes per day. Must be a scam!

Nup – easy. Here is how:

Make your own lunch.

When you go to work, what do you pay for lunch? I can’t buy lunch for less than $5.

If I make my own, I pay around $1 for bread, sandwich fillers and some fruit.

So, with about $4 of savings per day, and 48 working weeks per year that means we can save around $960 per year by spending 5 minutes per day.

But… how do you get $14,000?

Simple – compound interest.

Lets assume a few things:

1. No inflation – my lunch has been about $5 to buy for the last 10 years or so – food goes up a bit but not hugely. Let’s ignore inflation to simplify the maths.

2. We cannot get our $960 per year – it’s just too hard. So assume we can only save $800 per year.

3. We can invest our $800 at 10% return. We should be able to better than that, but let’s aim low.

Then, saving $800 per year for 10 years, compounding at 10%, and only tipping in the savings once per year we get:

10 year saving = $800 * (1.1^10 + 1.1^9 + 1.1^8 + … + 1.1^2 + 1.1)

or… $800 * 17.53 = $14024

Imagine – money for nothing!

Now… are you married or partnered, or have children? Want to make more money?

Simple…

If there are two of you and you both do it you save $28,000 over the 10 years. With children, just keep on multiplying that $14K number…

Why 10 years? Why not 20? Most people have a working life of 30 to 40 years… Well, if thats what turns you on, go and calculate it – you’ll be stunned at the results. I’ve used 10 years because it is a nice round number, and a realistic timeframe.

By the way – that 5 minutes per day adds up to 12,000 minutes over the 10 years, which is 200 hours. So the effective rate of pay for your 5 minutes per day is 14,000 / 200 = $70 per hour. You have to be a VERY high flyer to earn that.

So why don’t more people take their own lunch to work????

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