Take a look at your spending habits and see what kind of unnecessary spending you can cut out of your life. The Latte Factor is the latest offering from David Bach (author of a dozen books on personal finance) and John David Mann (author of a dozen books on leadership and business). The literal translation of this is if you saved the cost of a latte and instead invested it, that over time you would become rich. Curbing unnecessary spending, actively saving money, and investing wisely can make for a very fruitful retirement without having to totally abstain from enjoyments of our youth. Arla Organic Farm Milk celebrates UK Coffee Week by holding its first ever latte art throwdown competion. That is the stuff that we should work to eliminate. © 2020 Forbes Media LLC. The math behind the latte factor is pretty solid and makes absolute sense once you think about it. Seeing how this week at Budget Boss is all about Cash Flow, I love how the “Latte Factor” gets right to the heart of people’s budgeting issues. New grads: This book would make a thoughtful gift for any college/university graduate, with its fabulous entry-level advice on the importance of paying yourself first. Without a purpose, foregoing a cup of coffee hardly seems worth it (to me). What would that $2,400 be at the end of 30 years, growing at an annual rate of 8%? It can also be the subscriptions to the magazines we don’t read but are too lazy to cancel. In reference to coffee as a typical recurring purchase. His latest personal finance book, "The Latte Factor," is different than his previous work: It's told as a fictional parable, starring a millennial who struggles with money and the sage old man whose advice saves her. This simple and important concept has generated a fair amount of controversy. If you only go to the gym once every other month, maybe it is time to cancel that gym membership. Definition from Wiktionary, the free dictionary. It calls for discipline of your spending habits in order to help secure your financial future. latte factor. But let’s go with it since the latte is a good demonstration of where The Latte Factor concept generally falls short. The Latte Factor brings real meaning to the saying that small steps make a huge difference over time. Let’s say you save that $4 instead and invest it. These are just a few things we can all do that can save us literally a few hundred a month. The Latte Factor. Cancel that subscription to the WSJ if you only read the premium version a couple of times a month. More than 200 years ago, Benjamin Franklin cautioned, “Beware of little expenses. Rob is a Contributing Editor for Forbes Advisor, host of the Financial Freedom Show, and the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of. Jump to navigation Jump to search. This book pushes us to cultivate awareness towards how we use money, to be able to spend it for what really matters to us. “The Latte Factor is a soulful journey that will inspire you to live your dreams now. When I first started teaching the latte factor, I told the story of a young woman named Kim, who worked at The Gap and didn’t believe she had the money to save. by Kimberly Roy, Manager Programs. In the investment business, the magic of compound interest really is magical. I know for years my latte factor was eating out during lunch. The Latte Factor is a quick read but packs some powerful lessons. Instead of driving to work every day, maybe you can try busing to work or finding a carpool partner or a vanpool. The point of the latte factor is to not make you rich—it is an idea used to make more conscious spending decisions. The “latte factor” is actually somewhat of a misnomer as it covers a lot more than lattes. The Latte Factor book. 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