How To Become A Millionaire By Drinking Coffee Every Day

Tags: Personal Finance, Acorns, Frugality
03 February 2020

Wait! This is not a clickbait. In fact, it's the opposite.

This article is meant to give you the actionable steps to become that wealthy person you always wanted to be.

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The Irony

Do you like sarcasm? Let me give you that first.

I studied in one of the finest schools in India. I was taught so many great things in the school - like the Pythagoras theorem, Calculus. But, guess what I am using none of it in life - in fact, I don't ever see myself using it.

And everyone was so busy studying these things we never got a chance to learn about managing personal finances, filing our taxes, calculating our net worth - all the skills that basically everyone needs to learn.

It's not only my school. I know for a fact that the majority of the schools in Indian and even in the USA faces the same problems. I hope that will change soon.

But, hold on to your horses. I am going to teach you some valuable lessons today and give you actionable tips that you can start implementing today.

How Not To Become A Millionaire

Let's first see what you should NOT do if you want to be a millionaire.

Start with stop buying useless things - things that don't add any value to your life.

My story. I am a coffee fan. But, I am too lazy to go out to get the coffee every day. So, last week I came across this latte maker that I was so tempted to buy.

I was almost going hit the BUY button when I stopped - and I backed off a bit. I thought, does it really add value to my life? What is the main reason I like to drink coffee? Is it just the taste or something else? Then I started thinking - NO, I in fact go out for coffee to hang out with my friends. Spending time with them is more important to me than the latte I get. And then I removed that latte maker from the cart.

That's it. This is the magical potion everyone should know - always ask "Does buy this add value to my life?"

It takes time to cultivate that mindset. But, that is the first step you should not miss, or else the next steps won't work even if you make six or seven-digit figure income.

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How To Become A Millionaire

After you have cultivated that mindset let's see how you can actually become a millionaire.

One word.

Compound Interest

Hear me out.

Keep buying stuff like you usually do (but with the mindset that you developed from the previous step). Go out for dinner dates. Buy those chocolates that you love so much. Spend on those exotic vacations too.

But, every time you buy something to save the change.

Example - let's say you buy coffee every day. And it costs you $3.29. So the change is $0.71. What you do is save that change amount each day. By the month-end, you'd have approximately $20.

Now let's turn it up a notch.

Let's 3X that savings rate - just because you really do care about your finances. And also 3 times some change isn't really going to affect your pockets as much if you are on a path to become financially independent.

So now you are saving 3 X $0.71 for 30 days.

That is approximately $60 every month.

And guess what, you don't live on just coffee every day, do you? Every one of us need some basic necessities that we have to buy - like groceries, tech gadgets, toilet papers, and so on.

Now, imagine how much you'd save each month by just making regular purchases and saving the change.

Investing The Change

The above example sounded good, isn't it?

Now let's take a look at how you can expedite the process of getting wealth. Just beware, this is not a get rich quick scheme. I don't indulge in and neither do I encourage such financial schemes.

Let's say you save doing using similar to the above calculations - doing nothing extra but making regular purchases and saving the change.

What do you do with that change? Where do you save it?

Don't keep it in the bank. All the banks currently have a pathetic rate of interest.

I'd suggest you invest it in companies you trust the most. Buying stocks, bonds, and ETFs. These financial investment vehicles have proven to yield great returns on investment in the long run.

Learn more about stocks, bonds, and ETFs here and here.


I am a big fan of automation and managing my finances is no different.

I don't manage my personal finances like saving and investing manually. Never. You don't do it either. That's what stone age people did. We are not them.

There is in fact a great tool that I use to automate this whole process - Acorns.

Acorns - Intro

To give you an idea who great of a tool Acorns is please read this section.

Acorns is a micro-investing app which puts saving your hard-earned money on auto-pilot. It's robo-advisor and automated savings tool are both amazing features that make using Acorns a no brainer.

How Does Acorns Work?

All you have to do is link your credit cards and debit cards which you normally use for your day to day purchases. You keep living your normal life. And every time you make a purchase Acorns will kick in and round up your purchase to the nearest dollar and invest it for you.

You don't have to worry about picking individual stocks, or paying for the broker. Acorns have a flat fee of $1 per month and does everything for you while you sit and watch your money grow.

I have written an in-depth review of Acorn here. I highly recommend you reading it to see for yourself whether the Acorns is really for you?

Acorns give you the benefit of compounding your investment. You can select how aggressive or conservative you want your portfolio to be. For younger people I'd encourage to go more aggressive - that's what I do. And, I have been getting a return of 14% annually.

More Inspiring Money Calculation

I know a 14% return annually is more than average - so let's consider a little more conservative example.

Imagine you start investing early at the age of 20 and getting a return of 9% annually on your investment.

After 50 years - at the age of 70 you'd have $1,025,155 in your account. Your portfolio value just touched the 1 Million mark.

You just became a millionaire by investing change each day from the everyday purchases you made.

Let that thought sync in.

But, wait - you will be working and earning some salary while during this period isn't it? I hope you do.

So, you will be earning a salary. Getting a promotion. Climbing up the corporate ladder.

So, what if instead of $100 you invest $250 per month? Your portfolio would be $2,562,887.

What you invest $500 per month? Your portfolio would be $5,125,775.

What you invest $1000 per month? Your portfolio would be $10,251,549.

You get the point right? Basically becoming a millionaire is not as difficult as you'd think.

So, what is stopping you?


Finally, I'd suggest you keep a tab on purchases - see what is really adding value to your life. And for every purchase invest the change in your investment account - I'd suggest Acorns because that does it automatically for me.

More importantly, start investing early - start small if you want but don't delay. Because compound interest is more beautiful than you can imagine.

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