The latte factor

What is a latte factor? A latte factor is buying those small
convenience items like coffee, fast food, energy drinks, and
cigarettes just to name a few examples. How does the latte factor
affect us and our finances? First it bleeds ever so slowly our
financial life; it is like death by a thousand cuts.

Buying again and again those things that we don’t need or could make
for ourselves cheaper at home (coffee for instance) we are slowly but
surely draining away money that could be used for debt reduction,
investing, saving for a trip etc. There are many books like the
“Automatic Millionaire” by David Bach that explain in detail the
enormous amount of money that can be wasted by not being aware of the
latte factor. In fact this is where I stole the term from for this
post.

Not to say that you should not enjoy the fruits of your labor but
maybe tone it down some. Instead of coffee every morning at your
local/favorite coffee shop, make it at home before leaving for work.
My dear wife makes coffee for me and herself every morning. It is time
for us to talk and have some time in the morning and save money to
boot.

That energy drink you like so much; go to Costco and buy a whole case
instead of 1 at a time at the 7-11 convenience stores. Better yet get
some more sleep and you won’t need the “energy” so much. I know what a
concept! Instead of eating fast food save your money and eat at home
using the money to buy quality food instead of the usual junk that is
served in most of these types of establishments.

Inevitably it is a matter of priorities for all of us. Being a good
steward of your resources is not something that you learn overnight;
it is a skill like any other. Read, explore, think and act! Take
personal responsibility for your financial life and treat it like a
challenge. Being truly wealthy isn’t always about money it is about
being smart enough to play in all arenas of life and not only survive
but excel.

Be Well,

JP

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