So you’ve probably heard it before. Cut out that daily coffee and you’ll be rich someday. Another financial guru telling me to stop drinking coffee, right? Let me guess. They want me to give up the one thing that keeps me sane every morning, and that’s somehow going to make me rich. Yeah. No, it sounds ridiculous, right? I mean, how is skipping a $5 latte going to make anyone a millionaire?
Stick around. Because today we’re breaking down. How you. Yes, you can become a millionaire even on a low income. Using the latte factor. The term latte factor was coined by financial expert David Bock. And no, he’s not trying to destroy your caffeine joy or telling you to quit coffee. It’s a metaphor for representing those small, everyday, habitual expenses we barely notice that slowly drain your wallet without you even noticing.
Think that $5 random app subscription you don’t use eating out every lunch break impulse buys on Amazon, or the weekly takeout habit you’ve convinced yourself is just easier. Individually, these things don’t seem like much, but collectively, they’re quietly robbing your future self. So the latter factor enables you to identify where your money is quietly disappearing and redirecting it towards something bigger your future wealth.
Now, I’m not saying you have to live like a monk and never treat yourself, but small changes in your habits can have a massive impact over time. And that’s where the magic begins. So how do you figure out what your latte factor is? Start by tracking everything you spend for a week and I mean everything. Take a look at your spending habits.
Not just the big bills like rent or groceries. Look at the tiny leaks that $2 parking fee, the $12 sandwich, the $5 subscription you forgot you even had, and yet you only watch Netflix. Finding your latte factor is about spotting these small, consistent expenses that add up over time. Write it all down or use an app that does the work for you.
Then, at the end of the week, look for patterns. What are the expenses that don’t bring you significant value or joy but keep popping up? For most people, it’s shocking that $10 here and $15 there, could easily be $200 and $300 a month over a year. That’s $2,400 and $3,600. Now think about what that money could do if it worked for you, instead of vanishing into thin air.
Remember, you don’t have to cut these things entirely. The goal isn’t to punish yourself. It’s to redirect those dollars toward something that’ll grow your wealth. Because brace yourself for this. You probably already make enough money to become rich regardless of your paycheck. Why? Because wealth isn’t just about how much you make. It’s about what you do with what you make.
Yep. Even if you feel like you’re barely scraping by. Also, the problem isn’t how much you earn. It’s how much you keep. A person earning $40,000 a year who saves and invests wisely can become wealthier over time than someone earning six figures, who spend every dollar they earn. Think about it. If you can find just $5 a day to save, that’s $150 a month over ten years.
With compounding that can grow to tens of thousands of dollars. The secret isn’t to make millions. It’s to manage what you make like it’s worth millions. Here’s the deal. You don’t have to make a giant leap to change your financial future. Start small. Start with just one choice. Maybe you eat out one less time a week and put that $20 into savings instead.
Or cancel that gym membership you never use and start walking outdoors. These small sacrifices compound over time. It’s not the one skipped coffee that changes your life. It’s the habit of redirecting those dollars into something meaningful. It’s about taking control of your money instead of letting it control you. The Golden rule no matter how much or how little you make.
Always pay yourself first. What does that mean? It means taking a portion of your paycheck right off the top and putting it toward your savings or investments before you pay any bills or buy anything before you spend a dime on bills, food, or fun. Set aside a percentage of your income for savings and investments. Treat it like a non-negotiable bill.
Whether it’s 10% or just $50 a paycheck. The amount isn’t as important as the habit over time. This will become second nature and your wealth will grow in the background. You work hard for your money. Shouldn’t some of it go toward building your future instead of just paying for your bills and expenses? Let’s face it, we’re all busy.
Life happens and good intentions sometimes fall through the cracks. That’s why automation is your best friend. Set up an automatic transfer to your savings account every pay. Automate your bill payments so you’re never hit with late fees. If your job offers a retirement account, set up automatic contributions. Even if it’s just 1% of your income to start. This removes the temptation to spend it elsewhere and ensures you’re consistently building wealth.
Out of sight, out of mind, and into your future. The latter factor teaches us that you don’t need a six figure salary to build wealth. What you need is a plan. Discipline, and the courage to believe that small steps can lead to big results. If you’re watching or listening to this right now and thinking this sounds great, but I’m not sure I can do it.
Let me remind you, you’re capable of so much more than you think. It’s not about perfection. It’s about progress. Being rich means having the freedom to live life on your own terms. Do the work you love, or simply sleep soundly at night knowing you’re financially secure. It’s the peace of knowing you can handle an emergency. The joy of being able to travel without stress or the security of knowing your future is taken care of.
And that freedom. It’s within your reach. We’re so conditioned to think we need more to feel rich. But often it’s about needing less. It starts with small, intentional changes, the kind that compound over time. It starts with finding your latte factor and redirecting those dollars toward your dreams. The next time you’re holding that $5 or $7 coffee, don’t feel guilty.
Feel empowered because whether you’re sipping it or skipping it, the choice is yours, and every choice you make is building your future. So what’s your latte factor? What’s that one tiny habit you can change today that could start building your future tomorrow? Drop it in the comments. I’d love to know. And if you’re ready to take charge of your finances.
Hit that. Subscribe button. Because you don’t have to be rich to live rich. You just have to start by cutting one small, unused expense at a time. Invest that money and let the power of compounding do its work of multiplying and doubling that money.
