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  • Half a chocolate, double the joy

    Publish date: 6th July, 2018

    Everybody loves chocolates. For some, they are comfort food, and for others, they are a gesture of appreciation, friendship, or love. And on 7th July, the whole world will celebrate the delicious sweet—it’s World Chocolate Day after all!

    But let’s look at chocolates a little differently, shall we?

    In fact, not only will you be able to buy immediate joy, but also long-term happiness. Read on to see how.

    Better ‘latte’ than never

    Have you heard of something called the ‘Latte Factor’? It is a term coined by David Bach. The concept points out that the amount of money we spend on small things every day adds up to a huge amount over time. It mainly focuses on the things we spend money on that don’t really add value to our lives. Such spending is often habitual and we end up shelling out money unconsciously, not looking at the bigger picture.

    Such is our spending on chocolates. Most of us are guilty of buying chocolates out of sheer boredom. Sometimes, unknowingly, we make chocolates our go-to dessert or a snack. If you have a sweet tooth, there’s no saying how much you must be spending on chocolates.

    Assume you spend Rs 40 on a bar of chocolate every day – for yourself or as a little gift to your partner, spouse, friend, or child.

    In a month, you spend Rs 1200.

    In a year, you spend around Rs 14,400.

    Now, assuming you spend the same amount for the next 20 years, you could end up spending around Rs 2,88,000 on chocolates alone (not to mention a small fortune on your dentist!)

    No, we’re not asking you to stop

    But imagine if you shave a little bit of your chocolate craving—just a little. Of the Rs 40, let’s say you set aside Rs 20 by opting for a smaller-size bite every day.

    This means, you now have Rs 600 extra available with you every month.

    It’s now time for some math lessons:

    • Investment: Rs 600
    • Rate of return: 14%
    • Time period: 20 years

    Our Systematic Investment Plan (SIP) calculator here suggests that such an investment could grow to Rs 7,89,807.77 in 20 years if you earn 14% every year.

    The best part is this—the actual investment is just Rs 1.44 lakh! This is the power of compounding and your humble chocolate can bring you this.

    The bottom line

    There’s no denying that minimising spends on unnecessary things is just a start if you’re looking to grow your wealth but indulging once in a while may not be that bad after all. As Charles M Schulz, creator of comic strip ‘Peanuts’, rightly puts it: “All you need is love. But a little chocolate now and then doesn’t hurt.”

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