Canadian Personal Finance Blog

Best of: Tim Horton’s Savings Plan

Busy day, so I went back into my archives to find my Tim Horton’s Savings Plan posting from a little while back (a new classic):

think if you bought Tim Horton’s stock you are doing ok (no I am not saying go out and buy their stock, figure that one out for yourself), but I am saying look at that “Double Double” you have sitting next to you. Ever thought how much those things cost you? I have asked you this question before, so you should know the answer.

Let’s have some fun Monday Arithmetic, shall we?

1. Assume you drink 3 “Double Doubles” a day for 5 days (what you do on the weekend is your trouble not mine). How much is that costing you a week then?3 * $1.39 * 5 = $21.00 per week
2. You work how many weeks? I’ll say 45 weeks to make it easier to calculate for me. So that means you are spending about:45 weeks * $21 / week = $945 per year on coffee
3. Over say 10 working years assuming you took that money made a lump sum payment every year into an investment vehicle that paid a modest 5% (remember if you put it in an RRSP you’d get back tax money too).We have:
   

   Year	Value
   1	$945.00
   2	$1,937.25
   3	$2,979.11
   4	$4,073.07
   5	$5,221.72
   6	$6,427.81
   7	$7,694.20
   8	$9,023.91
   9	$10,420.10
   10	$11,886.11

So after 10 years you’d have almost $12,000 in your pocket (less taxes on the growth, unless you do this inside of an RRSP).

Does that coffee seem so cheap now? Hey, you folks drinking at Starbucks and paying twice as much for your coffee, want me to do the calculations on THAT for you?

Food for thought for a Monday.

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