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What Is The Latte Factor

How Much Does The Latte Factor Cost?

Most of us have heard of The Latte Factor. Love it or hate it, there's been some misconception on how much it actually costs to sip a latte daily. The coiner of the phrase, personal finance expert David Bach, has stated that buying a daily latte or something similarly priced can cost you a pretty penny of $2.7 million over 30 years. Alpha Consumer did some calculating and found that the final cost comes out to around $50,000.

I'm not a proponent of The Latte Factor, because I do enjoy my daily coffee. I like my store-bought lattes, but on the occasion when I don't have the time to beat those Starbucks lines, I make my own at home and spice it up with things like manuka honey and ground cinnamon. I believe that if you budget right, you can skimp on some things and splurge more on others. It's all about balance and allocating your money properly.

So what do you think Savvy readers — do you believe in The Latte Factor?

Join The Conversation
lickety-split lickety-split 6 years
lol, by all means! lets deprive ourselves of the joy of starting the day off with something that makes us happy so that we can put it into a retirement fund that tanks just when we need it most. :medal: awesome idea.
lilkimbo lilkimbo 6 years
I think we all understand that's what the idea is. IMO, you can't afford something if you are not already putting money into savings each month. Disagreement with a concept doesn't indicate lack of understanding.
chequettex chequettex 6 years
The idea is that you save the money you would otherwise spend on a latte (or a manicure, or whatever luxury item you routinely buy) you would SAVE instead, and that's what many people forget to do - actually set that money aside. Instead they buy a flat-screen TV or acquire a car or house payment they can't really afford.
lilkimbo lilkimbo 6 years
I think it's all a matter of prioritizing. I enjoy the occasional latte, but would rather spend my money on lunches out, so I typically drink the free coffee we have in our office and pack eat lunch out a few days a week instead of packing every day and enjoying a morning latte. I think it's silly the way financial gurus always tell people what they should be cutting out to save money. If you enjoy something and can afford it, why not do it?
Spectra Spectra 6 years
I save money on clothes and shoes because those things are just not that critically important to me. I'd rather spend my money on good food, Netflix, etc. I also skip getting pro manicures but I splurge on good polish so I can do my own.
amber512 amber512 6 years
I definitely think you can skimp on some things to splurge on others. I'm glad I HATE coffee and tea and can save there!
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