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The Spend | Gym Membership
While memberships to box gyms have come down a great deal in price thanks to consolidation in the industry, these companies continue to thrive thanks to no-show members. If you're one of these no-show members, you're not alone, but you are wasting money.
Even at $9.99/month, you end up spending $119.88/year for a membership you're not using.
The Opportunity Cost | Retirement
That $119.88 is quite a bit more if you invest it in retirement. Your hard earned dollars could deliver a $51.57/year tax break and another $85.73/year in employer matching contributions (based on a 50% match). Total it up and the retirement opportunity cost is $257.18 per year.
The Long-term Opportunity Cost | 30-year Value
When you choose to save money for retirement instead of paying for an unused gym membership, the money adds up over time. Without getting too fancy with your investment portfolio, that $257.18 per year adds $55,488.75 to your retirement nest egg in 30 years.
If you were to receive a check in the mail for that amount, it would read, "FIFTY-FIVE THOUSAND FOUR HUNDRED EIGHTY-EIGHT AND 75/100 DOLLARS"
Wouldn't you want to get a check like that in the mail?
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