Have you ever heard the phrase “Latte Factor”? The Retire Happy blog has a post that explains it well. Here is a quote from their Latte Factor blog post:
What is the Latte Factor?
David Bach coined and trademarked the phrase “Latte Factor”. It is those small, day-to-day purchases that, when eliminated, can actually provide you with a significant, and somewhat surprising, sum of money. It really comes down to finding $5 a day that can be saved and invested.”
So how does that Latte Factor apply to us?
Over the years my husband and I have become addicted to Starbucks, especially since we use to live very close (almost next door) to one.
Several years ago we sold that house that was next to Starbucks (for a nice profit) and chose to move into a rental home.
Now we are a 5 minute drive to the nearest Starbucks, but that is not the real reason why we decided to purchase a Saeco 641 Odea Go Super Automatic Espresso Machine.
We decide to purchase the Espresso Machine because we started to think about the Latte Factor and the money we were spending on a daily basis.
My husband enjoys drinking a Venti Caffe Mocha and I enjoy a Grande Hot Chocolate.
Both of these drinks can be made with the Espresso Machine and they taste wonderful.
We realized that over the course of 365 days of spending $8.72 each day, for two hot drinks, we were spending $3,182.80 a year.
Even though the machine cost $600 (2 years ago) it was well worth the investment. It is easy to use and easy to clean, and as you can see, it has already saved us a lot of money over the past 2 years.
Do you have small daily purchases that you can eliminate in an effort to save money?