The £37,000 fairtrade coffee

If you work in the city and find yourself grabbing a coffee or a snack every afternoon for on average about £4, it’s a real and true great example of the cost of debt in the modern world


Most people are either a little behind or a little ahead.


If you think about it over a ten year period, if you’re putting that coffee on your credit card, which adds up to about £1,000 a year, then include all the interest accrued, over the ten years it’ll cost you £24,408.40, and you might never find the means to repay the debt.


On the other hand, if you put that same £1,000 into the lowest cost investment fund that paid about 7% a year, you’d end up with £13,816.45 in the bank.


That’s because interest compounds. It’s because banks like to charge more than they pay out. And it’s mostly because we’re very aware of the short-term and happily ignore the long term.


There are more ways then ever to get ahead in life.