The Latte Factor

I believe it was in one of the David Bach "Finish Rich" books that I first heard of “the latte factor”. For those who aren't familiar with the term, it refers to the idea that many people continually spend on small purchases (like a latte) that add up to a ridiculously large amount over their lifetime. I didn't drink latte's at the time, but I did have a pack a day smoking habit that I was better able to put into perspective.

Since then, I have given up cigarettes but I started drinking coffee. Latte's, to be exact. And I realized a couple of months ago that I was drinking one a day, five to six days a week, at about $5 each because I was using the coffee shop's "free" internet service. It was also at about that same time that I noticed that my budget was completely out of whack, and that my pants were not fitting right.

Long story short...

I signed up for my own internet service at $30 a month, or one week's worth of latte's. I dusted off the coffee maker that I had stashed on a back shelf for the few occasions that I have just happen to have an overnight guest who drinks coffee, and I started brewing my own java.

I go through about 24 ounces of coffee every two days. With beans, chocolate syrup and soy milk, I'm estimating that I spend about $10 every three weeks making my own latte's at home.

My savings? $65-$80 a month. That adds up to roughly a grand a year. I can think of a lot of things that I would rather spend $1,000 on than coffee.

Oh, and the bonus - I've lost about a pound a week by giving up the high calorie beverages that I was purchasing at the "fill-in-the-name" coffee chain. My pants are fitting a whole lot better now!

Want to know what your own "Latte Factor" is costing you? Try this handy calculator from David Bach and "Live Rich. Finish Rich." (FYI - You do have to put numbers in every field.)