What has a cup of coffee made with espresso and steamed milk got to do with your finances? Actually NOTHING. However, I want to introduce you the “Latte Factor” which has everything to do with your finances!
The “Latte Factor” is based on an extremely simple concept – we need to look at the small things we spend our money on ‘unconsciously’ every day and redirect that spending to enrich ourselves. Putting aside that odd ringgit or two a day for our future instead of spending it on purchases such as expensive lattes, bottled mineral water, cigarettes, too much alcohol, magazines that we don’t read, handbags that are kept in the cupboards… you’ll be amazed the difference your latte factor can make between accumulating wealth and living from pay check to pay check.
We often don’t even realize how much we are actually spending on these little purchases. If we did think about it, and change our habits just a tad, we could actually change our destiny. Just to prove the point, let’s assume we manage to redirect ten ringgit every day, that’s RM300 a month, into our special Latte Account for the next 30 years … assuming an interest rate of 6% p.a., you will have in excess of RM300,000 in your account! Get your Latte Account working just a little harder by setting up a well-constructed and efficiently managed investment portfolio to return you 12% per annum, you will amazingly become a millionaire in the next 30 years! Are you surprised?
Do this for the next one week. Identify your actual “Latte Factor” by tracking your daily spending in detail and then calculate just how much you could save in a few years. The “Latte Factor” is not rocket science – it just makes good financial sense. This simple exercise can possibly be life changing. It all adds up, so start checking out on your Lattes today with your Financial Planner.
