The pack lunch. Simple yet powerful. But can a pack lunch make you rich? Let’s take a look at the breakdown of my homemade pack lunch verses what it costs to purchase lunch from the cafeteria at my workplace.
|Lunch Item||Cost||Work Place Cost|
As you can see, my pack lunch from home is $3.82 less than the cost of buying this at my workplace. For the roughly 220 days I work per year, I will save $840.40 each year. If I invest this savings in a broad index fund that earns on average 7% per year, in 10 years I’ll have $12,424.14 and in 40 years $179,517.48.
Okay, so packing my lunch alone won’t make me rich, but imagine what several small changes will add up to.
Each small change you make will compound into an avalanche of savings.
The power of reducing a fixed cost is two-fold. Not only are you saving money, you are also reducing the amount your future self will need to live. This means you will need to save less for retirement, or in other words, have the means to retire early.
At this point you may be saying “Okay Kevin, I get it. But I never have time to make my lunch.”
So what’s my secret for walking out the door with a pack lunch 99% of the time?
We prepare the pack lunch the night before.
We’ve gotten so used to this that it has become a routine. Every weeknight around 9 PM, we go down stairs together and prepare our lunch. It’s a great time to hang out. Even my dog has taken to having a little bite to eat as we prepare our pack lunch so he doesn’t feel left out.
So what do you say? Do you want to be pack lunch buddies?
* these costs were estimated based off similar items sold in my cafeteria