This is a conversation between a man and his wife. Please note that she asks 5 or 6 questions which he answered quite simply and she is speechless after answering only one question.
Woman: Do you drink beer? Man: Yes
Woman: How many beers a day? Man: Usually about 3
Woman: How much do you pay per beer? Man: $5.00 which includes a tip
Woman: And how long have you been drinking? Man: About 20 years, I suppose
Woman: So a beer costs $5.00 and you have 3 beers a day which puts your spending each month at $450.00. In one year, it would be approximately $5400.00 correct? Man: Correct
Woman: If in 1 year you spend $5400.00, not accounting for inflation, the past 20 years puts your spending at $108,000.00 correct? Man: Correct
Woman: Do you know that if you didn’t drink so much beer, that money could have been put in a step-up interest savings account and after accounting for compound interest for the past 20 years, you could have now bought a Ferrari?
Man: Do you drink beer? Woman: No.
Man: Where’s your Ferrari? Woman: huh…
Saved this for next financial planning session with spouse!