Personal Finance – What Is Your Latte Factor?


Latte Factor®, Automatic Millionaire®

Have you ever heard of the Latte Factor®? That phrase was coined, and trademarked by David Bach, the author of The Automatic Millionaire®. Written in 2004, this book reveals strategies that can help average people with average incomes and with no budget, to become millionaires automatically over a period of years.

As a former financial adviser who was endorsed by Dave Ramsey, I have met with thousands of people about their money. Without a close second, the most common problem we face in America is spending too much. Budgets typically only work for a short period of time because they require a great deal of self-discipline.

In chapter 2 of his book, David Bach came up with the Latte Factor® to help us determine where we are wasting our money daily, and what that money would be worth had it been redirected into an investment with an average 10% return over a period of years. By determining that factor, we ought to be motivated to begin that process.

For example; if you stop and grad a cup of coffee and a pastry at Panera or Starbucks on a daily basis, you are going to spend about $5.00 each day on that unnecessary item. So, let’s determine what that Latte Factor® is by investing that $5.00 a day ($150 a month) into an investment that returns 10% over time. Here is what that would look like after:

1 year = $1885

5 years = $11,616

10 years = $30,727

30 years = $339,073

40 years = $948,611

That’s the power of compounding interest over time! That’s the power of the Latte Factor®. Hope you enjoyed your latte!

By simply taking notes of one day’s spending, and adding the items that are considered wasteful you can use the same process to come up with your Latte Factor®. What if you wasted $10, $15, or even $20 a day. What would your Latte Factor® be if you invested it instead? The numbers can be really staggering, and Bach has charts in his book to help you with the math too.

This one amazing little strategy, set up to work for you automatically over time, can dramatically affect the outcome of your working years and allow you to retire with dignity. The book, The Automatic Millionaire®, has many other strategies that are easy to set up, and work automatically.

Apply this one strategy, and wait patiently to see the power it can have in your life. I wonder if it is possible to accelerate this and other strategies in order to cut the time from 30 or 40 years down to 15 or 20? 5 or 10? Keep checking in. You never know what is really possible.


Jerry Spangler

Dieser Beitrag ist ein öffentlicher RSS Feed. Sie finden den Original Post unter folgender Quelle (Website) .

Krypto-Nachrichten ist ein RSS-Nachrichtendienst und distanziert sich vor Falschmeldungen oder Irreführung. Unser Nachrichtenportal soll lediglich zum Informationsaustausch genutzt werden.


Please enter your comment!
Please enter your name here