The Latte Factor… Hmmm, For ME, More Like The Wine Factor
I borrowed an e-book from the NLB (National Library Board) last week. I love our NLB - books are easy to download and it is free. There is quite a good range of e-books to borrow. I want to get into the habit of reading 2 books a month. The Latte Factor caught my attention and I decided to borrow it. After all, it is from the #1 NEW YORK TIMES BESTSELLING AUTHOR - David Bach.
The concept of the book was simple. The Latte Factor isn't about lattes. It is about the trivial discretionary expense we incur daily. I can totally resonate with this. I have this Thai colleague (or Australian - which he claims) that has one Starbucks coffee in the morning. Another Starbucks drink in the afternoon. Some days, he has his 3rd drink from Starbucks. I always “joke” that Starbucks should make him a VIP in our building. He does get some VIP treatment from the staff - the “Good Mornings”, the “small talks”, etc. I, on the other hand, drink the free coffee from the office. I still get to choose Flat White from the coffee machine.
Back to The Latte Factor, small amounts of money spent on a regular basis will cost us far more than we can image. These savings could be channeled into investments and, over time, can be compounded into a decent amount.
Well, I believe, in theory, many of us can save hundreds of dollars a month if we take a closer look at our expenditure. However, it is not easy and I do have my “bad habits”.
The same Thai-Aussie colleague and I will usually have “one for the road”. We would rush down to the bar before the happy hour ends and order a glass of red wine. That’s $7.06 inclusive of taxes for a glass of red wine, free peanuts, and a glass of water.
And that will be 20 days (approximately) x $7.06: ~S$ 142 every month. This does not include the occasional “2 for the road”. I could save S$150 a month from stopping this habit, and turn that into $120,000 after 30 years at 5% return.
The Wine Factor is my Achilles’ heel. To be honest, I will probably cut down and try not to make it a daily event. So... What’s your factor?