Take a dollar and look at it. Not really much, is it? I think that is why dollar stores have become so successful.
Consider the following facts from New York Times article Don’t Ask. You can Afford It:
- Dollar General 259 of Americas top 500 companies.
- Dollar Tree now on the list at 499
- Dollar General 8,400 stores
- Family Dollar 6,600 stores
- Dollar Tree plans to open 235 new stores and relocate 90 existing stores.
- Dollar General will open 450 new stores and remodel or relocate about 400 existing stores.
- Photo by suburbandollar.
Here is why I suspect the dollar stores are thriving in the economy – because a dollar is nothing to most people. The dollar is the new penny. Only the true penny (dollar) pinchers would really care about such a small sum. So we buy this or that at the dollar store because, hey, it’s only a dollar.
So what could that dollar grow to in the future? (of course we are not factoring inflation or talking about buying power, just simple numeric math):
Take that $1 today and invest it at 10% and here is what you would have:
5 years $1.61
10 years $2.59
15 years $4.18
20 years $6.73
25 years $10.83
30 years $17.45
35 years $28.10
40 years $45.26
45 years $72.89
50 years $117.39
Photo by beansoup_67
Next time you are in the dollar store and feel like you just need to have the item that will probably just break in a week, ask yourself if you would rather have that one item or $45.26 in forty years. Forget about the dollar store – apply that rationale to any purchase, and I suspect you will end up spending less than you do now.
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{ 2 comments… read them below or add one }
Here is an article that I read recently on msn. While shopping at the dollar store is not always a great idea due to inexpensive impulse items, there are some things on this list that are great money savers.
Emily
http://articles.moneycentral.msn.com/SmartSpending/FindDealsOnline/dollar-store-deals-and-duds.aspx?slide-number=1
@Emily Thanks for you comment. Great to have you as a reader. Thanks for passing along the MSN Article!