How to Save Money by Targeting Your Latte Factor®
May 1, 2012
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The Latte Factor® is author David Bach’s program that helps you save a lot of money just by reducing small daily or weekly costs. For example, buying coffee, dining out, and buying music are just a few activities that can quickly add up if you do them on a regular basis.
If you’re trying to save money or you simply want to track your spending, figure out what your Latte Factor® is. Below are some tips for managing your finances using your Latte Factor®.
- Pay attention to the areas in which you frequently spend money. How much do you spend a week on items other than bills?
- Use the Latte Factor® Calculator on David Bach’s website. This tool allows you to input and even track your spending. It calculates how much your habit could save you over weeks, months, and years depending on the projected interest rate of investing the money.
- Keep the money you save in a change jar. Or, to save even more, invest the money so you can earn interest. Once the dollars start to accumulate, they’ll be harder to part with, plus you’ll save money that can help you reach big financial goals.
- Opt for a cheaper alternative. If your Latte Factor® is, in fact, lattes or expensive coffee, you could brew your own coffee at home instead of buying it from a coffee shop.
- If you decide to cut back on your Latte Factor®, start small. Change daily habits into weekly ones. Cutting yourself off too quickly can lead to bigger splurges later on.
- If you’re not sure what your Latte Factor® is, target ways you can save money daily. How could you save a dollar a day? Five dollars a day?
- Manage your Latte Factor® carefully if you can’t part with it completely. Treat yourself on special occasions or limit yourself to only one regular indulgence. Make sure you save enough otherwise to justify treating yourself.
- In the end, just make sure you keep a detailed budget. Being in control of your finances motivates you to balance spending with saving and makes you less likely to overspend.
Learn more about financial management by pursuing an accounting degree program near you.
This article is presented by Briarcliffe College. Contact us today if you’re interested in developing marketable knowledge and career-relevant skills with an industry-current degree program from Briarcliffe College.