I haven’t been to the club in years y’all–Legit years! But a few weeks ago I was feeling fancy. I said let me go out tonight, since I haven’t been out in a while. (I’m low key a home body) And I also don’t like wasting my money lol let’s keep it real. I be at the club trying to figure out all the money the club is making and thinking of ways I can make money as fast as the club does, but that’s a post for another day.
I always hear people say
“If you would’ve of taken the same money you spent at the club and invested it you’d be better off.”
I just never knew how much better off I would be. Today I’m going to walk you through how much money I spent out on my Friday night and how much money I would have made a year later if I would’ve invested that money instead.
Ready? Let’s go!
Friday March 18th 2016 I started off with grabbing dinner with a friend. Cool vibes, and great conversation. I’m not getting paid to talk about any company today so I won’t be listing Restaurant or Club names. I ordered a pizza, and one drink. We split the bill, my total came up to $25.68.
I left the restaurant and headed to the club, my friend was nice enough to give me a ride, so I didn’t have to pay for an Uber this round. I don’t drive, so Uber or MBTA everywhere lol. It was a little chilly this night, but luckily I didn’t have to stand in line long. I had no idea I was going to the club that night so I hadn’t signed up for the guest list ahead of time.
The bouncer took my license, told me I was pretty and I walked inside. “Thanks bouncer, am I pretty enough to avoid this $25.00 entrance fee, y’all about to hit me wit or nah?!” Is what I thought, but I just paid the fee and kept it moving.
$25.00 though! Club prices done went up. The club done raised their prices meanwhile I’m still waiting for my yearly raise. I walked down the stairs to be greeted with women in their bra and panties dancing. I didn’t get the bra and panties night memo, but ok boo. How much they paying you? $12.00 an hour ohhh okay.
I walked over to the bar, holding my coat because you know you need at least one drink at the club. I didn’t ask the bartender how much was a drink I simply handed her my card and asked her to make me something sweet. When she handed me the receipt I saw that my small cup of ice and liquor was $14.00. I thought my eyes were deceiving me. Was my one drink from dinner finally starting to kick in?
Does my receipt really say $14.00 and is that blank space asking for a tip?! Fix it Lord. Please.
I walked away from the bar, drink in one hand, coat and purse in another. The coat check was $4.00, but I didn’t want to pay $4.00 for them to hold my coat. But for the sake of this post let’s pretend I paid $4.00 for the coat check. There I was at the club minding my own business when I heard the beat drop.
Cash, money, records, taking over, for the 99 in the 2000… I must have matured over the years because usually when that song comes on, it’s over. Suddenly I didn’t grow up in a church, all my morals are gone, i’m no longer wise and my dad doesn’t love me. (Dad I know you love me, but for the sake of this post I had to add it lol)
However this time when the song came on I played it cool. My friends arrived at the club and one of them was nice enough to buy me another drink. I’m going to include that 2nd $14.00 drink into tonight’s tab.
Since I don’t drive I had to call an Uber to give me a ride home. The surge price for the night was 1.4x the normal rate, which ran me a cool $16.00.
Total Spent on my Friday night:
The Restaurant: $25.68
The Club entrance fee: $25.00
Coat Check: $4.00
Drinks: (2) + tip= $30.00
Grand Total: $100.68
Now let’s assume that we invested that $100.68 into the stock market. Let’s pretend I did my research and decided that Coca-Cola was a great company that I wanted to invest in. For the sake of this exercise I’m going to use Coca-Cola’s share price from last December which was $43.30 for 1 share.
Since I only have $100.68 to work with I would only be able to afford 2 shares of Coca-Cola.
43.30 x 2 shares= $86.60 + 8.95 fee= $95.55
* I invest with Charles Swab so there is a $8.95 trading fee.
Coca-Cola is a company that happens to offer quarterly dividend payments. According to Google a dividend is “a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).”
In 2015 Coca-Cola’s dividend payment was .33 per share. Assuming that I only purchased 2 shares of Coca-Cola in December of 2015 by April 2016 I would’ve made:
0.33 in March 2015
0.33 June 2015
0.33 Sept 2015
0.33 Nov 2015
0.35 march 2016 ( In March the dividend price increased)
1.67 dividend x 2 shares = $3.34
Today 1 share of Coca-Cola costs $46.89, but since I bought the shares in 2015 for 43.30 I would of made $6.28 because of the increase in share price.
My grand total I would’ve made in 1 year if I invested my $$86.60 into the market instead of the club and bought 2 shares of Coca-Cola I would have approx. $86.60+ $3.34 + $6.28= $96.22. Keep in mind this is only if I invested $86.60 for the entire year. $86.60 a year later vs $0 and memories at the club.
What if I invested $100 a month, $200 a month? I know many people think that you must have a lot of money in order to start investing, but that’s not true at all.
If you would like to learn more about investing you can pick up your copy of my investing book here.
*Disclaimer: The ideas, concepts and everything else on this blog, are simply my opinion based on what has worked for me. I have used Coca-Cola as an example and am not endorsing them. While I am happy to answer your questions, these answers are based on what I would do. I am not a financial planner, nor do I have any formal qualifications to give financial advice. You are solely responsible for your own choices. There are absolutely no guarantees here.