How often do you find yourself saying, “I can’t afford that!” Whether it’s about an unplanned expense or something that you want to buy. David Bach, author of The Latte Factor, says that’s usually just a lie we tell ourselves.
In his book, The Latte Factor, Bach lays out several key points that can be summed up as: Small amounts of money spent on a regular basis costs us far more than we can imagine.
The Latte Factor came about after a class Bach had taught some years ago. One of his students said she couldn’t afford to save, but she was drinking a latte at the time (and almost every day in his class). He ran the numbers and showed her that if she skipped the latte, she would save $5 a day. What does $5 a day mean to you? Let’s do the math. $5 a day is $150 per month. Would you like to save an extra $150 per month? What’s the value of $150 per month saved in 10 years from now? That’s $1,800 a year saved and $18,000 in 10 years from the Latte Factor alone. Over 25 years, five dollars a day will net you almost $50,000. It’s amazing how such a small difference each day can make a huge impact over time.
As you head into the new year, vow to stop saying “I can’t afford that!” and take a second look at your finances. You don’t have to starve yourself of enjoying everything that life has to offer. Instead, pick one thing you know you spend money on that you might be able to do without. Is it your morning latte, eating out for lunch every day, subscription service, etc.?
If you want to get serious about getting your finances in order this year, here are two recommendations:
- Buy The Latte Factor and read about how Zoey turned her morning latte into the words “I CAN afford this.” It’s a quick read and it’s really eye opening!
- Take a look at your current debt. Instead of making multiple payments on multiple loans, have you thought about consolidating those payments into one lower monthly payment? You may even get a lower interest rate that will minimize the amount of interest you’re paying.
Apply for a First Financial Consolidation Loan online, or contact us to see if we can help you get started in getting your finances in order this year.*
Happy New Year and Keep Thinking First!
*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. A First Financial Federal Credit Union membership is required to obtain a Personal Loan, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.