Have Your Latte & Drink It Too
What do you want your tomorrow to look like? There are things you can do today to help set you up for future success. You don’t have to cut out everything that brings you joy today in order to save for tomorrow. Tune in to this episode to learn how you can have your latte and drink it too!
No More lattes?
We’ve all heard of the “latte factor” or “latte millionaire.” But for those of you who don’t know, these terms refer to the idea that people are constantly making small purchases (like a cup of coffee), and over our lifetimes, this adds up to a large sum of cash. The idea is simple. Stop the coffee purchases, put the money somewhere that allows you to accumulate interest, and just like that, you’ll have much more money in the future. The math is obvious, but what’s not so obvious is that this idea is misleading and unrealistic.
Enjoy Your Latte While Making Money Moves
Learning how to properly allocate your resources is probably more important than ditching the coffee. A business has a budget, and so should you. So, grab your cup of joe because today we have a morning task. Start by listing your fixed expenses that need to be paid every single month. After that, think about other areas you’d like to spend money on. Set concrete spending limits in these areas because then you’ll find yourself making it a habit to never overspend. Discipline beats motivation, and learning to operate out of good habits will go a long way. It is said we only need to improve ourselves by 1% every day to become successful. So let us take this idea and change our money habits by 1%. Not every day, but every once in a while. Perhaps per quarter or per year. Work at your pace. And if you feel you don’t know where to start, consider working with a financial planner. You’ll have an accountability partner and someone to look at your situation from a third-party independent view.
Remember to make whatever you enjoy an item in your budget. A reward system can help you accomplish whatever money goals you have. Just like your cup of coffee helps you feel awake, alert, and energized throughout the day… that one reward may give you the energy and drive that’s needed to accomplish your new money goals.
In this episode, Luis talks about the following and more:
- The magic of compound interest
- The power of doing small, consistent steps for a long period of time
- Designing your environment to set you up for success
- How discipline beats motivation