How Eating Peanut Butter And Jelly Can Make You A Millionaire

Let’s go back to a year ago when I accepted my post-grad job offer. As soon as I knew how much I’d be making I decided to build a budget. Yes, that is the kind of thing that excites me. I decided that I was going to live the good life. I budgeted about $10,000 for entertainment and a whopping $11,000 for food, or $30 a day.
What was I thinking? I just graduated college and had one of the largest advantages for becoming a millionaire that ever existed: I am accustomed to a low standard of living.

 Okay, so eating peanut butter and jelly is your magic advice?

Well, let’s look at the potential impact. My budget assumed $10 a day for lunch.
Here is what lunch actually costs me if i make a PB&J:
• 1 oz peanut butter- 45 cents
• 1 oz grape jelly- 10 cents
• White bread-10 cents
That comes out to $0.65 for my lunch, or savings of $9.35.

$9.35 doesn’t seem like a big deal

If that is what you were thinking, then you would be surprised. If I save $9.35 on lunch everyday then I would end the year with $3412.8 saved. Here is where the math gets really fun.
Assuming you saved and invested 100% of those savings every year at a return of 10% per year (the historical average for the stock market) here is what PB&J could really earn you:

  • in 10 years- $54,391.24
  • in 20 years- $195,468.12
  • in 30 years- $561,385.20
  • in 40 years- $1,510,479.87

Keep a low standard of living for as long as possible

I know reading that sentence is tough. After all, isn’t the point of becoming a millionaire to be able to live well and buy the things you want for yourself and your family? I would say yes, but right now while I don’t know the difference and can make due with much less, I am willing to make sacrifices.
Obviously no one is going to eat a peanut butter and jelly sandwich every day for 40 years, let alone one year. That isn’t the point though, the point is that managing your spending is a powerful tool that could easily make you a millionaire all on its own.

Closing thoughts

“What you put in is what you’ll get out.” How many times have we heard that statement? It is true though for becoming a millionaire: the amount of hours and effort you put in as well as the amount of sacrifices you make now determines how quickly you will become a millionaire.

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2 thoughts on “How Eating Peanut Butter And Jelly Can Make You A Millionaire”

  1. Hey George! Great idea for a blog post. Young people these days who are just starting to work seem not to give any thought to this, often heavily inflating their lifestlyes in ways that feel very small. A $10 lunch won’t break anybody, but imagining that every time I eat my sushi or latte, I am losing out on $1m+ at retirement… very enlightening! The way I like to save money is always drinking water when I eat out… perhaps this would be a good topic for a future post!

  2. Wow George!! This is a very insightful post! I love the vision and I’ve already ordered bread on Amazon. Also, I’m sure you’re already aware, but NBA players tend to rely heavily on PB&J’s before big games. As we all know, NBA stars are all millionaires. Coincidence?? I think not ;^)

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