“A latte spurned
is a fortune earned.”
- People Magazine

I have decided to live frugally. And when I say frugally, I am going to the extremes here. It’s a difficult decision to make especially for someone who hates the phrase, “I can’t afford”. But let’s face it, I can’t live in denial that we’re facing recession and continue with my spending habits! And in comes the Latte Factor. What is the Latte Factor?

The Latte Factor® is based on the simple idea that all you need to do to finish rich is to look at the small things you spend your money on every day and see whether you could redirect that spending to yourself. Putting aside as little as a few dollars a day for your future rather than spending it on little purchases such as lattes, fancy coffees, bottled water, fast food, cigarettes, magazines and so on, can really make a difference between accumulating wealth and living paycheck to paycheck.

We don’t even realize how much we’re actually spending on these little purchases. If we did think about it and change our habits just a little, we could actually change our destiny.

Still not convinced? Consider this:

$5 per day (the average cost of a latte and a muffin) x 7 days = $35 per week

$35/week = $150/month

$150 per month invested at a rate of 10% annual return =

1 year = $1,885
2 years = $3,967
5 years =$11,616
10 years = $30,727
15 years = $62,171
30 years = $339,073
40 years = $948,611

So we know that great things start from small beginnings. I began surfing for tips to save on money:

OK, follow the advice and I’m off to a great start. Now, is there any way to lock my wallet/ATM card out?

source

latte factor