How I got a 27% Return Buying Wine
As we mentioned in the How to Save Money section of the Buck Builders:
Recently, at my local overpriced liquor store there was a case lot sale for wine. The deal was you buy a case (12 bottles) of wine and you save big. Now my wife’s go to wine is Barefoot Moscato, an inexpensive, sweet white wine that seems to be popular as it’s often sold out, driving me to buy the more expensive, Jacobs Creek Moscato. Now I can typically buy this on sale at a liquor store a bit farther away for $8.49. But this case lot deal was amazing, an entire case for $80! That’s $6.67 per bottle.
So what did I do? Back the truck up, or in my case a 2015 VW golf (awesome car, highly recommend it). At $6.67 I’m saving $1.82 per bottle over the common sale price and more at the normal price. That works out to a 27% return by parking my money in wine that will be consumed at a future date ($1.82/$6.67 x 100). Anywhere where you can get a guaranteed 20%+ return is a golden opportunity.
In fact, a 27% return is so good that if you invested $2,000 per year for 30 years over your career, with a 27% annual return it would be worth… over $9.6 million dollars.
So I bought three cases for $240. Yes, our monthly spending will be out of whack, but overall our yearly spending will be lower because of this purchase.
Where in your life can you invest by buying future consumables?
If you have a little bit extra space you should start buying toilet paper, dishwasher tabs and long term consumables at Costco. And be sure to check out our post on when you should buy the executive Costco membership to save even more.