BOSTON (CBS) – A dollar here, a dollar there. All of our little expenditures can really add up when we spend money on those small indulgences day to day.

You’ve probably heard it before that you spend more on lattes and cappuccinos than you think.

But the numbers really can add up. If you take the $4 a day, and invest it at 8% over 30 years with compound interest, you would end up with almost $200,000.

WBZ-TV’s Paula Ebben reports.

Now maybe that morning cup of coffee is worth it to you. But think of some of the other things you drop a few bucks on regularly and the numbers can get big, fast.

Examples include pizza, manicures, and smoking. Over 30 years each of those items would cost you six figures. Put it together and it reaches $1.8 million.

That’s money you might wish you had when it comes to retirement.

David Bach of said, “What most Americans do is they spend first, and they try to save last. It doesn’t work.”

In fact, a recent study finds that 77% of Americans had less than $100,000 saved for retirement. A fresh look at your savings strategy could allow you to afford that latte now, and also in retirement.

See: Other Consumer Articles

“If you could learn to live on 80% of your income and take 20% off the top, 10% would go to retirement savings and 10% would go to paying down debt. You would have not financial concerns when you retire,” advises Bach.

That could provide a big piece of mind. Based on another survey, the average 65-year-old couple will need to have saved about $250,000 just to cover their medical expenses.

Comments (6)
  1. Petetm says:

    Someone want to point me to something that’s earning 8%?

    1. doog says:

      My first thought as well. 8% over 30 years? 3% interest would leave you with about $70,000 over 30 years for $4 a day. Sounds more realistic.

  2. Ann says:

    I’d like to know how someone working part-time at minimum wage is supposed to save 20%. There are no morning coffees or take-out meals. Do I tell the creditors that I will pay 80% of my monthly bills? These investment people don’t know the real world.

  3. emom says:

    I didnt think anything was at 8% for a gain, not even low end stocks. wait how can anyone afford to save that much money A DAY, with he way the economy is I only wish I could save that much a day, thats a $120 a month But I will work on it, maybe a buck a day for now………..

  4. Petetm says:

    My only comfort here is to know that I’m not alone. Maybe if we all pool our money we can get to the numbers they mention here.

  5. response says:

    why do I need to save 250K for medical expenses, Mr Obama, says everyone will have medical coverage from the government????? Is this a lie?
    I figured, since I have paid for everyone elses medical, it’s time they pay for mine when I retire.

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