A few years ago, David Bach coined the phrase “Latte Factor” in his book, The Automatic Millionaire. Latte Factor refers to the small expenses that drain money from your wallet without you noticing such as buying coffee. Even though it is called the Latte Factor, it can refer to many things such as bottled water, magazines, etc.

There was a recent article about frozen yogurt becoming the new Latte Factor.

It is okay to spend money but it is important to realize how much you are spending and what you are spending your money on. It is referred to as conscious, when you are thinking before spending money on something and deciding if you really need to purchase the item.

Nancy Kvamme

One thought on “Latte Factor is More Than Coffee

  1. Kevin Baisch
    June 20, 2012 at 9:37 am

    My wife and I have talked of this often. It is indeed the “little stuff” that quietly lowers your bank balance. The same can be said for health. Sometimes it is the “silent” illnesses that develop because of poor lifestyle choices or sometimes simply the “luck of the draw” Thanks for the nice reminder to keep our eyes on the little things.