Struggling to save that penny? 5 Reasons I say ‘Latte Factor’ is BS

First thing first, what the heck is Latte Factor?

If you haven’t heard of it, it’s one of the buzz words in 2019, coined by David Bach in his book The Automatic Millionaire: A Powerful One-step Plan to Live and Finish Rich.

The idea is, if we could give up small trivial things we spend daily, the amount saved could add up to an extremely large amount over time, with the power of compound interest. Even this term is explicitly called ‘Latte Factor’ it does not only apply to the morning coffee but also any small but unnecessary expenses that comfort you as you go.

If you are interested, this article listed the 7 key concepts of this idea and you can work out how much you could have saved over time in with the Latte Factor calculator here.

I’m not going to go through this ‘Latte Factor’ in-depth because I disagree with this idea to the uttermost. Despite this idea do have its merits and you could get rich slowly if you follow, and of course, this idea reminds you not to blow every hard-earned dollars on temporary wants, however in my opinion, focus mainly on saving, could do more harm than good to your financial situation.

Disclaimer: I came from a humble background where my family taught me the importance of saving or spending…