Is the "Latte" factor holding you back?
Want an example of a harmful concept?
The "Latte Factor"...
In case you're unfamiliar with this term it essentially just means that small daily expenses (like lattes) can add up to hundreds of thousands of dollars by the time you're 65 if you invested the money instead...
Guess what?
It's WAY easier to increase your income than it is to reduce your expenses...
This is 100% true for both businesses and personal finances...
I understand that these books are designed and written specifically to sell millions of books to the middle class, but that doesn't make these ideas less harmful...
Why do I say this is a harmful idea?
Because it encourages people to have a mindset based on scarcity instead of abundance and to restrict their ambitions to what the middle class considers "successful"...
What's the point in cutting out all of the simple daily pleasures in your life just so you can have 1-2 million dollars in investments when you're 65 (when the years where you'd likely enjoy the money the most have passed)?
So what if every Morning you spend around $9 on a coffee and Croissant from a fancy coffee shop?
*Gasp! That's like $270/month, why would you do this?*
Because maybe you like how the croissants taste from there?
Stop denying yourself all the things you enjoy in life just because financial experts tell you that you have to...
Instead, spend that same energy that you'd spend pinching pennies on figuring out how you're going to increase your income to a level where you can spend what you want, when you want and live by your own rules and own definition of success...
It's much easier than you think to increase your income (once you reject the scarcity mindset that society expects of you and replace it with an abundance mindset)...
Sure, having a money management system in place to manage and grow your wealth is important...
But a budget?
Not my cup of coffee...
To our freedom...
John W. Newman
Dream It, Believe It, Then Achieve It!
Recent Comments
20
I am experiencing that right now. I should downsize but don't intend to stop doing the little things I enjoy...I wish I started this year's ago. This post should be required reading in all schools...need to change the mindset of children!
Debbie
Totally agree!
At a stage in my life I thought it was a great idea to reduce my expenses to have more money. It resulted in a life that was bland and devoid of fun.
I'm not saying you shouldn't keep your expenses in check but as you say, focus on increasing your abundance, rather than settling for limitation and compromise.
~Mark
I love this. This is the attitude we all need.
Now I'm off to buy a latte and smashed avo on toast.
Cheers
Melissa
I agree and I like your style! I honestly haven't thought of it this way before. Thanks!
Chris
You are right on! Abundance is all around us. Stop being your own worst enemy and live your dreams. The scarcity mind set is all around us, it's what the news projects and people talk about.
I need to talk to different people!
How great, and the coffee in the pic looks simply delicious. Yes, I agree with you. Attitude defines altitude.
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Hi John, A good post, life would not be very enjoyable if you cut out all pleasures just because of what they cost. What´s the point in being the richest person in the graveyard if you did not enjoy your life. You are a long time dead! :-) Best Alan
Absolutely Alan! Cheers :-)