#iBillionaireCoffeeChallenge Graph Explained
Over the last 10 years, spending $5 a day, on coffee or what have you, would have cost you a little more than $18K. Yes, a decent chunk of change, but consider this. If instead of walking into that coffee shop, you had just gone on iBillionaire (or another free trading app with fractional shares, which let you invest in any stock regardless of its share price), and clicked “invest $5” in the S&P 500, you would have over $36K today. Double your money. Crazy, right? So we created the iBillionaire Coffee Challenge.
We created the challenge because small purchases don’t seem to really add up to that much if you just look at them as cash. BUT they actually aren’t small! Spending $5 a day actually costs you much, much more when you look at it as a potential $5 investment.
Think about it
We want you to flip the concept of those small purchases upside down. Instead of thinking, “it’s just $5” in the moment, think of what it could be: $10, or $20, or more, depending on how long you leave your money invested for. We designed the iBillionaire Coffee Challenge to take advantage of the painless $5 everyday purchase. You don’t even notice it’s gone! It’s just $5. But it’s enough to add serious cash to your savings for when you’re older – if you invest it.
The iBillionaire Coffee Challenge: How To Join
Easy: Invest $5 per day. Do it by setting up an auto-investment plan on iBillionaire. Or whenever you’re tempted to buy a coffee, go to the app and invest $5 instead. Join the coffee challenge now!
It’s Also An Expert-Recommended Investing Strategy!
Investing a set amount of money at a regular interval also takes advantage of an expert-recommended strategy for long-term investing: dollar-cost averaging. By making regular purchases, the swings in the market don’t affect your portfolio as much because your purchase price is the average price over time. Using a schedule, you don’t let emotions, the scourge of making money investing, get the better of you. Also, you buy more shares when the market is down!
What To Invest In
We recommend the S&P 500 because it’s Warren Buffett’s top recommendation for the average investor. It’s akin to investing in America, which as he says, “since 1776 it’s worked and it’s gonna keep working.”
Of course you could double your money in the last 10 years, many of are surely saying, the S&P 500 has had a massive bull run over the last 10 years! But actually, as long as you invest long-term, you’re looking at serious return potential.
- If you invested $5 per day in the S&P 500 starting in 1993, 26 years ago, that means you experienced the dot-com crash and the 2008 financial crisis. But today you would have over $175K in your investment account! Versus spending $5 per day for 26 years: over $47K.
- In other words, more than triple your money! Of course, there’s never a guarantee when you’re investing, and if you cashed out during one of the crises, your total would be a different story, but as long as you keep your money invested, you should be fine long-term. And if you don’t sell when the market is down, you should be looking at a serious return on your investment.
Join the iBillionaire Coffee Challenge! Start here: Open an account.