• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Home
  • About
  • Blog
    • Budget
    • Health
      • Food
      • Fitness
    • Financial Freedom
      • Travel
    • Money
    • Student Loans
    • Sweet Reads
  • Shop
  • CONTACT
  • Sugar and Money
  • Nav Social Menu

    • Facebook
    • Instagram
    • Pinterest
    • Twitter
Sugar and Money

Sugar and Money

Sweet Life Sweet Finances

Sweet Read: The Latte Factor by David Bach

by Jackie 2 Comments

0shares
  • Share
  • Tweet

Coffee Cup

Have you ever heard of the term, The Latte Factor? If so, What do you think about The Latte Factor?

If you haven’t heard of it, The “Latte Factor” is a term that equates to saving and/or investing a large amount of money by not spending money on daily lattes. However, your “latte factor” doesn’t have to be a latte. Instead it could be cigarettes or maybe even avocado toast.

Do you think grabbing a cup of coffee every day is keeping you broke or keeping you from your financial goals? Or does that cup of coffee not really matter because its only a few dollars a day. The average cup of coffee can cost $3 – $5 a day, even more if you purchase coffee more than once a day or if you add on another treat at the coffee shop. In David Bach’s (with John David Mann) latest book, entitled, “The Latte Factor – Why You Don’t Have to Be Rich to Live Rich” explores The Latte Factor through the lens of a millennial young lady named Zoey.

Zoey is going about her daily routine as normal and one day notices a specific photograph in a coffee shop but feels she can’t afford to buy it because she is broke. She meets a barista named Henry and over a few visits they start talking and conversations around money start. I won’t give the story away but Henry points out to her that she is richer than she thinks and goes into the Three Secrets to Financial Freedom which is essentially the book’s big idea.

The Three Secrets to Financial Freedom

1. Pay Yourself First.

The first hour of your income is yours and you should invest it. For example, if you invest $10 a day and it earns 10% annual interest, after 40 years, you’d have $1,897,224. Almost 2 Million dollars! In this example, you make $10 per hour but if you make $25 per hour then you would invest $25 a day.

Sugar and Money Tip: Make paying yourself non-negotiable.

The Latte Factor

2. Don’t Budget – Make it Automatic.

Well if you know me, I definitely believe in budgeting but also highly believe in automating everything financially that I can. By automating finances you are able to make sure the following things happen: bills aren’t skipped,  bill aren’t paid late, savings is drafted and sent to the appropriate account(s), designed funds are sent to investments like retirement account(s). In, “The Latte Factor” Bach writes, “Set up a simple, automatic system that will run by itself in the unseen background so it takes zero discipline, zero self control, zero willpower. Just set it up and let it run.”

Sugar and Money Tip: Automate your finances, because if it isn’t in your bank account, you can’t spend it. Examples: 401k, IRA, Sinking Funds, etc.

3. Figure out what matters and follow that! Live Rich Now!

With this secret, think about things that truly bring you joy and focus on those things. Build in ways to enjoy those things now and not some far off future. Some ideas could be to travel, attend a specialized class like dance or cooking that you’ve always wanted to do or plan to take a sabbatical.

Sugar and Money Tip: Brainstorm the things that truly evoke joy in your life and write them down. What do you want to do that truly makes you happy?

Final Thoughts on The Latte Factor

The book was an easy read and I love that it was written as a story. The book held my attention the whole time and it also provided great financial charts for review.  The story about Zoey and discovering her path to financial freedom is a story that I think many people can relate to. I recommend this book to not only read but to apply to your life and take action. No one is getting younger and everyone should consider all 3 Financial Secrets and how they can be applied to your life. “The Latte Factor” can be picked up from your local library or by clicking here to purchase from Amazon.

As a lover of personal finance and blogger, I am always interested in new personal finance books and I enjoyed that this was a short read and it was written as a story versus filled with numbers and facts. It made the book more relatable but numbers and facts was still included when appropriate.

Other books by David Bach include:

Smart Women, Finish Rich

The Automatic Millionaire 

Please comment below: Do you have a latte factor? Is there a small expense that you spend on regularly that if eliminated could grow into a nice nest egg when compounded with interest over the next 20, 30 or 40 years? Let me know and Thank you so much for reading.

signature

Filed Under: Money, Sweet Reads Tagged With: book, money

JOIN THE NEWSLETTER

Signup today for free and be the first to get notified on new updates.

Reader Interactions

Comments

  1. AvatarCharis says

    at

    Gotta get this book! Such a great analysis!

    Reply
    • SugarJackieSugarJackie says

      at

      Thank you! Please let me know what you think after reading it.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

A little about me…

JackieSugar and Money is a blog about the personal finance choices and thoughts from a 30- something old Mom, Wife, and lover of personal finance. This blog shares her story of tackling debt and creating her version of financial freedom. Read More…

JOIN THE NEWSLETTER

Signup today for free and be the first to get notified on new updates.

Save More, Spend Less Bundle

Starter Worksheet Bundle to Save More!

 

Categories

  • Budget
  • Family Finances
  • Financial Freedom
  • Financial Inspiration
  • Fitness
  • Money
  • Saving Money
  • Student Loans
  • Sweet Reads
  • Uncategorized

JOIN THE NEWSLETTER

Sign up to receive our newsletter & updates

The Latest on Instagram

I've heard the financial rule of thumb of saving 1 I've heard the financial rule of thumb of saving 10% of your income for many many years. Most generally say to save 10% of your gross income especially in regards to retirement but I also believe you can choose to save 10% of your net income depending on your goals and how much you can comfortably save. (A rule of thumb is a generally accepted guideline but its not a proven fact however it gives you a reference point in my mind) Heck - I know people saving/investing 20% - 50% of their income (Hello #FIRECommunity)⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
So, since I'm unable to contribute to my 401K until May and I have yet to take action on opening my RothIRA (I know...what am I waiting on😩) I've started saving 10% of my net pay. Net pay is the amount of money that you "bring home" after all the deductions come out...you know all those deductions like your retirement plan contributions, taxes, and benefits...THEN what's left is your net pay. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
I take my net pay amount and multiply that by .10 and that total is the number that I transferred to my savings account on payday🤑⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
My current plan is to save 10% of my net pay each payday and then once I open my Roth IRA - deposit all of it into my Roth IRA.⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
❓What is something that you're currently doing with your finances? ⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
#sugarandmoney #financialfreedom #thinkandgrowrich #debtfreejourney #budgeting #financialgoals #goalgetter #goaldigger #debtfreedom #studentloandebt #studentloanssuck #manifestyourbestyear #mindsetmatters #buildingwealth #financialpeace #moneysavingtips #financialindependence #millenialmoney #budgetingtips #debtfreeliving #debtfreelifestyle #savingmoney #financialruleofthumb⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
🧁 Follow @sugarandmoney for more sweet money content.⠀⠀⠀⠀⠀⠀⠀⠀⠀
💖Like this post if you want to see more posts like this.⠀⠀⠀⠀⠀⠀⠀⠀⠀
🗣 Share with a friend because sharing is caring.⠀⠀⠀⠀⠀⠀⠀⠀⠀
👇🏾 Comment and let me know your thoughts.
If you are new around here or missed the memo, I s If you are new around here or missed the memo, I started at a new company after being permanently laid off from my employer of 11 years. My current company offers a 401k plan and they even automatically contribute 2% even if I don't contribute anything. They also match the first 4% that I contribute. That's cool BUT... I have to wait 6 whole months to start participating! Y'all! 6 months seems hella long to me and I've never had to wait that long. Previously I've waited 3 months at most.⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
What about you? What has been the longest amount of time that you've had to wait to participate in your company's retirement plan? ⬇️⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
#sugarandmoney #financialfreedom #thinkandgrowrich #debtfreejourney #budgeting #financialgoals #goalgetter #goaldigger #debtfreedom #studentloandebt #studentloanssuck #manifestyourbestyear #mindsetmatters #buildingwealth #financialpeace #moneysavingtips #financialindependence #millenialmoney #budgetingtips #futureselfplanning #retirementplanning #questionoftheday⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
🧁 Follow @sugarandmoney for more sweet money content.⠀⠀⠀⠀⠀⠀⠀⠀⠀
💖Like this post if you want to see more posts like this.⠀⠀⠀⠀⠀⠀⠀⠀⠀
🗣 Share with a friend because sharing is caring.⠀⠀⠀⠀⠀⠀⠀⠀⠀
👇🏾 Comment and let me know your thoughts.
The 2020 numbers just keep rolling in. Honestly, I The 2020 numbers just keep rolling in. Honestly, I thought I paid less in student loan interest since I only paid on them for a few months but numbers don't lie. The good news is, any and all accrued interest on all of my remaining student loans has been satisfied. (I have 3 student loan groups left, totaling $29,700)⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Have you received your student loan tax information? If so, how much did you pay in interest? (Nelnet is my student loan servicer and sent them out electronically on the 12th)⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
#sugarandmoney #financialfreedom #thinkandgrowrich #debtfreejourney #budgeting #financialgoals #goalgetter #goaldigger #debtfreedom #studentloandebt #studentloanssuck #manifestyourbestyear #mindsetmatters #buildingwealth #financialpeace #moneysavingtips #financialindependence #millenialmoney #budgetingtips #debtfreelifestyle #debtfreeby40 #debtfreeliving⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
.⠀⠀⠀⠀⠀⠀⠀⠀⠀
Follow @sugarandmoney for more sweet money content.⠀⠀⠀⠀⠀⠀⠀⠀⠀
💖Like this post if you want to see more posts like this.⠀⠀⠀⠀⠀⠀⠀⠀⠀
🗣 Share with a friend because sharing is caring.⠀⠀⠀⠀⠀⠀⠀⠀⠀
👇🏾 Comment and let me know your thoughts.
My favorite quote is, “Nothing happens until you My favorite quote is, “Nothing happens until you decide”⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Whatever goal you have in mind that you want to achieve this year, decide that you will finish it.⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
So, decide on your goal(s) then decide that you will achieve that goal! Silence any doubts, haters or naysayers because at the end of the day - your goal is exactly that - Yours! ⠀⠀⠀⠀⠀⠀⠀⠀⠀
You might start and stop but don’t you dare quit on yourself. Not this year! Instead...Finish it!⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
But I want to hear from you, Let me know one goal you plan to start working towards achieving and that you're committed to finishing in 2020-Won!⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Let’s Get It!⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
📷:@henryjonesphotography⠀⠀⠀⠀⠀⠀⠀⠀⠀
⠀⠀⠀⠀⠀⠀⠀⠀⠀
#sugarandmoney #budgeting #newyear #finance #savings #money #financialfreedom #thinkandgrowrich #debtfreejourney #budgeting #financialgoals #goalgetter #goaldigger #debtfreedom #studentloandebt #studentloanssuck #manifestyourbestyear #mindsetmatters #buildingwealth #financialpeace #moneysavingtips #financialindependence #millenialmoney #budgetingtips #debtfreeliving #debtfreelifestyle #goalsettingseason #twentytwentywon
Follow me on Instagram
Sugar and Money

Copyright © 2021 · Sugar and Money | Sweet Life Sweet Finance ·