​Have you noticed this lately (well really since Covid)?  It seems like everywhere you go someone is asking for a tip.

I understand tipping servers at a sit-down restaurant. They provide service, check on your meal, refill your drink, and help create a positive dining experience. But recently, it feels like the tip screen has become the main event.

Buy a coffee? Tip.

Pick up a sandwich? Tip.

Purchase something at a counter? Tip.

Grab carryout? Tip.

This week, I stopped for lunch and when it came time to pay, the terminal was spun around toward me. The suggested tip options were 25%, 30%, and "Other."  Thirty percent!  I found myself wondering when 15% became 20%, when 20% became 25%, and when 25% became the new normal.

Then another thought hit me.  What if I simply ordered carryout instead (being the cheap skate that I am)? What would all those tips add up to if invested rather than spent?

The Six-Figure Tip Jar

According to recent consumer spending data, Americans spend a significant portion of their food budget dining away from home, including restaurants, takeout, coffee shops, and delivery services. Americans now spend more on food away from home than groceries in many cases. [escoffier.edu], [ers.usda.gov]

Let's keep the math simple.

Assume you spend $100 per week eating out. Now assume you leave a 20% tip.  That means you're spending:

• $20 per week in tips
• $1,040 per year in tips

At first glance, $20 doesn't seem like much.  But what if, instead of spending that money, you invested it?

Assume you invested $1,040 annually into a low-cost index fund and earned an average return of 8% per year.

After 30 years, that account could grow to approximately: $117,815

Let that sink in for a moment. Not from finding the next hot stock. Not from timing the market. Not from taking excessive risk.  Just by redirecting one small weekly spending habit and allowing compounding to do what compounding does best.

The Real Lesson Isn't About Tipping

Before anyone sends me an angry email, this article is not really about tipping. Tip generously when appropriate.  Support hardworking people.  Be kind.

The lesson is bigger than that.

The lesson is that small decisions made repeatedly over long periods of time can produce remarkable results.

Most people dramatically overestimate what they can accomplish in a year and underestimate what they can accomplish in thirty.

We tend to focus on the big wins:

• The next promotion
• The next investment
• The next business opportunity

Meanwhile, the small habits quietly shape our financial future every single day.

What Else Could Become a Six-Figure Decision?

The interesting thing is that dining habits are only one example.

Lawn Service

Suppose you pay someone $150 per month to cut your lawn.  That's $1,800 annually. Invested at 8% for 30 years, that annual amount could grow to nearly $204,000.

Valet Parking

Choosing valet parking over self-parking might cost an additional $15 each week. That's approximately $780 annually.  Invested for 30 years at 8%, that could become roughly $88,000.

The Daily Coffee Run

Let's say your Starbucks habit costs $6 per day, five days per week.  That's about $1,560 annually.  Invested for 30 years at 8%, it could grow to approximately $177,000.

Suddenly that latte looks a little different.

Now, am I suggesting everyone mow their own lawn, park three blocks away, and swear off coffee forever?
Absolutely not.

Life is meant to be enjoyed. The point is not deprivation.  The point is awareness.

The Power Isn't in the Savings. It's in the Discipline (and in some cases accountability).

Here's the uncomfortable truth.  Most people already know how to save money. The challenge isn't knowledge.  It's discipline.

We know we should:

• Save more
• Spend less
• Invest regularly
• Avoid unnecessary debt
• Think long term

Yet we often allow convenience and impulse to win.

The irony is that lasting wealth is usually built through dozens of small, boring, repeatable decisions rather than one brilliant financial move.

Wealth creation often looks a lot like brushing your teeth. Not exciting.  Not glamorous.  Just consistent. Day after day. Year after year. Decade after decade.

What Are Your "Little Things"?

• Perhaps your opportunity isn't tips.
• Maybe it's subscriptions you never use.
• Maybe it's restaurant meals.
• Maybe it's impulse purchases on Amazon.
• Maybe it's a vehicle payment that's larger than it needs to be.
• Maybe it's something else entirely.

The important question isn't, "Where can I cut spending?"

The important question is:

"If I redirected just a few small habits toward my future self, what could that become over time?" The answer might surprise you.

Ready to Discover Your Biggest Opportunities?

Most people cannot see the opportunities hiding in their own financial lives.

That's exactly why we created our Strategy Session.

In a 45-minute session, we'll help you identify planning opportunities, uncover blind spots, and show you where small adjustments today could create meaningful results in the years ahead. As we often tell clients, financial success is rarely about finding a magic bullet. It's about making smarter decisions consistently and letting time do the heavy lifting.

If you'd like a fresh perspective on your finances, schedule your session today:

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​Because sometimes the difference between where you are and where you want to be is nothing more than a few small habits repeated over a very long time.

​When I was growing up, my father would constantly chastise me to “get a job, you need to pay for one-half of your college education.”  Although his education policy was clear, I found this approach tended to emphasize making money over extracurricular involvement.

As a result, I had an egg route at age 14.  A paper route at age 16 and worked at a Kroger in Indianapolis as a bag boy (or a Courtesy Clerk in today’s more politically correct world).  I later worked every summer during college including stints as a house painter, a bakery oven construction worker and a pizza chef for Godfather’s Pizza.   That is the same chain that the recently deceased Herman Cain was famous for turning around.
 
The emphasis in my case was purely on the money side.  On the positive side, it did help me limit my student loan debt to a mere $2,500 upon graduation.  Yes, I know the joke…what would that be in today’s dollars?  Ha ha!
 
With my kids, I was a bit less stern.  The idea was they would pay around half their education but with many jobs unavailable until 18 or after and the fact that my kids were not the entrepreneurs that I was, they were allowed to pay for their half with student loans and grants or scholarships.
 
What is your policy?

Whether it was my education or that of my kids, in both cases, we were provided, or we provided, a clear policy towards college and post graduate education.
 
With so many kids approaching college, getting ready to head to college or just logging in for college, do you have an Education Policy?
 
Let me give you four (4) reasons why you should:
 

1. It provides a clear idea to your children of their part in paying for college or post graduate education.
2. It allows your financial planner to better pinpoint your true expected future cost for your children’s education and whether you can achieve your financial goals, whatever they may be.
3. It forces all parties involved to think through the cost benefit side of college and puts a more value on the college experience.
4. Depending on your policy, it could help teach your children the value of money and the high cost of such schooling.  This may in turn push some students to explore other alternatives like community college or trade schools.

 
What does a sample policy look like?
 
Here are a few examples, but I would encourage each couple or parent to develop their own policy for their own special circumstances.
 
Policy Example #1
 
When you finish high school, you are on your own.  Your parents do not have the resources to help you so you should focus your energies on getting the best grades you can so you can get as many grants and scholarships as possible or consider other alternatives, like community college or trade school, where you can work while in school to pay for those costs.
 
Policy Example #2
 
We will pay for 100% of your educational costs for a four-year degree from an in-state college or university, including tuition, fees, room, board and a monthly stipend.   We will only pay up to the cost of attending a four-year, in-state college or university, including the above items, should you choose to attend an out of state institution.  Essentially you will be responsible for the difference in the total cost over and above the total four-year cost of a similar in-state college or university.
 
We will not pay for any post graduate costs but will credit and pay for some of those costs up to the amount of scholarships or grants you earn during your undergraduate program at an in-state school.
 
Policy Example #3
 
We will pay for 50% of your educational costs for a four-year degree from any college or university, including tuition, fees, room, board.  We will also provide you a monthly stipend to cover any other costs.   
 
We will not pay for any post graduate costs, that will be your sole responsibility.
 
I can go on and on as there are lots of possibilities.  However, the key point is that it is important to develop such a policy that is uniquely yours and to make your children aware of such a policy as early as possible.
 
I know there are going to be those out there that say this puts too much pressure on a child, but I would argue it also provides clarity.  It allows the parents and the child to start discussing what might be the child’s responsibility and how they can prepare, such as work in high school or college.  Finally, it may incentivize the child to work harder in school to take advantage of all possible grants or scholarships if college is part of their plans.
 
Obviously, every child is different, and it is tough for most teens to know exactly what they want to do with their lives, but a well-crafted education policy will provide for a dialogue if nothing else.
 
Let me know your thoughts in the comment boxes below.