The Latte Factor

The Latte Factor

The Latte Factor(r) (created and developed by David Bach, author of The Automated Millionaire) is based on the simple idea that all you need to do to be a better manager of God’s resources is to look at the small things you spend your money on every day and see whether you could redirect that spending to Grace-giving, debt elimination or savings for the future. 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 being truly wealthy 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

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