Moving Up In Life

Thursday, October 13, 2005

The Latte Factor™

One of my goals was to stash away some cash for emergencies. So I am going to tackle this one today. I have been skimming through David Bach’s The Automatic Millionaire. He refers to one of his ideas as “The Latte Factor.” It is a simple way to start saving:

“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.”

So I am going to take a stab at this and see how it goes. I go for a coffee break every morning and after. Luckily I don’t drink coffee but a can of pop is $1 so that is $2 a day I am spending. Usually it is more if a have a cookie or a muffin.

The Plan
Skip the usual trip to the coffee shop and go for a walk instead
Each week I will have saved $10, so I will put that in a special savings account

The Goal
Simply stated assuming no interest since rates are so low.

  • 3 Months = $120
  • 6 Months = $240
  • 12 Months = $520

So in one year I should have $520 in a savings account just by skipping my daily trips to the coffee shop. I know that is not a lot of money, but you have to start somewhere. Imagine if I started taking a lunch to work instead of going our for lunch!


  • Have you seen any of Dave Ramsey's stuff? He's a great motivator when it comes to managing finances. I sort of follow his "baby steps", but I never could get on a line item budget :P His website is if you want to check him out, you can also listen to his radio call in program from there.

    By Anonymous Anna, at 10:34 PM  

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